We are asking that former President Donald Trump withdraw his proclamation. He has raised the new H-1B visa application fee to $100,000—a move specifically aimed at discouraging highly-skilled foreign workers from coming to the United States.
How the H-1B program works
The H-1B program allows U.S. employers to temporarily employ foreign workers in specialty occupations. Each year it allots only 85,000 visas: 65,000 to regular applicants and 20,000 to those with advanced degrees.
Trump has claimed the increase of lower-wage workers through the H-1B program has harmed the program’s integrity. He argues that this trend is a serious risk to America’s economic and national security. He invoked his authority under federal immigration law to restrict the entry of certain foreign nationals, hoping to discourage what he describes as a “large-scale replacement of American workers.”
A coalition of unions, employers, and religious groups has filed a lawsuit challenging Trump’s authority to impose this new fee. The plaintiffs argue that he doesn’t have the authority to make sweeping changes to the H-1B visa program on his own. They further claim that he lacks authority to charge fees to raise money for the U.S. They argue that these kinds of measures would lead to a system open to targeted enforcement and bribery.
“The Proclamation transforms the H-1B program into one where employers must either ‘pay to play’ or seek a ‘national interest’ exemption, which will be doled out at the discretion of the Secretary of Homeland Security,” – [lawsuit]
Under the current system, employers who sponsor an H-1B worker generally pay an array of fees totaling between $2,000 and $5,000. This draconian new fee sets a significant disincentive for companies who need to hire the best foreign talent. This is particularly true for industries that rely on a highly skilled workforce, such as technology.
India was the clear frontrunner in last year’s H-1B visa arena, with 71% of approved applications coming from there, with China making up 11.7%. The administration made clear that the new fee will not impact those who currently have an H-1B visa. Moreover, it won’t affect anyone who applied on or before September 21st.
White House spokeswoman Abigail Jackson, who attended the event, supported the proclamation. She underscored that it aims to stop companies from gaming the system and driving down wages for American workers. She reiterated that the policy is intended to give predictability to employers who need to recruit the best and brightest from around the world.
“Discouraging companies from spamming the system and driving down American wages, while providing certainty to employers who need to bring the best talent from overseas.” – [Abigail Jackson]
The H-1B program has been under fire for years from those who argue that it harms domestic labor markets and wages. Critics say it often just allows firms to hire less expensive labor instead of training American workers. With the introduction of a high fee, we expect that businesses will start taking a different approach to hiring foreign professionals.