U.S. Corporations to Maintain H-1B Visa Holders Within National Borders
In a significant turn of events, President Donald Trump's announcement of new H-1B visa regulations has sent shockwaves through the tech industry, with major US companies such as Amazon, Meta, Microsoft, and JP Morgan reportedly urging their foreign employees to return to the USA within 24 hours.
The H-1B visa, primarily used by large US companies to hire skilled workers from abroad, particularly those from India, has seen a significant shift. According to data cited by The New York Times, these companies have historically relied on the H-1B visa, with Amazon employing over 10,000 people on H-1B visas in the US in June alone.
The crux of the issue lies in the drastic increase in visa costs and stricter rules. In a move that could significantly impact the hiring practices of large, internationally active US companies, Trump ordered an annual fee of $100,000 for the H-1B work visa, a significant increase from previous processing fees.
This fee hike means that US companies will now have to consider whether a job candidate is valuable enough to pay an additional $100,000 to the government. As a result, there is a strong possibility that these companies may opt to hire American workers instead, rather than bear the increased cost of the H-1B visa.
The change also means that US companies can no longer afford to bring in inexperienced workers and train them. The high cost of the H-1B visa may discourage companies from investing in the training and development of foreign workers, potentially limiting the pool of skilled talent available to these companies.
Notably, companies like Microsoft and Meta had roughly half that number of employees on H-1B visas, indicating a strategic approach to the use of this visa in the past. However, the new regulations could force these companies to rethink their hiring strategies.
The announcement was made by US Trade Minister Howard Lutnick, adding another layer of complexity to the already volatile tech industry. As the dust settles, it remains to be seen how these changes will reshape the tech industry and the job market in the long run.
