US President Donald Trump is reportedly preparing to sign an executive order. This new order will require applicants to pay a fee of $100,000 to secure H-1B visas. This initiative aims to fix the H-1B visa program. It transports foreign, skilled labor into critical industries. The new move has raised alarms about what it will mean for the American workforce. This is of particular concern with respect to the technology sector’s significant dependence on foreign talent.
The H-1B visa program has been capped at 85,000 applications per year since 2004. It costs companies hundreds of thousands of dollars each year to obtain these visas. The registration fee is $215 this year. Larger employers have to pay an additional $780 in filing fees for the I-129 form. There is a $500 fraud prevention and detection fee for H-1B applicants.
Trump’s sudden decision is hanging over a long-standing dispute about the future of the H-1B programme. He admits there’s “two sides to the argument” on whether or not the visa system works. Critics counter that the program erodes jobs for Americans. They argue that it allows firms to bring in foreign labor at a wage discount. Proponents, including tech industry leaders like Elon Musk, argue that it enables the United States to attract top talent globally.
In Amazon’s case, it made headlines last fiscal year by becoming the largest beneficiary of the H-1B program. It then collaborated with private sector players, such as Tata, Microsoft, Meta, Apple and Google. Together with a history of the tech industry coming together to support Trump through his campaign. Their goal was to make it easier and faster for employers to recruit highly-skilled personnel. Trump had claimed to make it easier to attract talent allowing foreign college graduates a direct path to a green card.
“You need a pool of people to work for companies,” – Donald Trump
Despite these benefits, the programme has garnered criticism. Critics are most focused on the fear of “abuse” of the system. They ask if it really accomplishes its mission of closing skill gaps in the American economy.