The Trump administration has rolled out an application fee increase of 11,000%, to $100,000 per visa. That deeply unpopular new fee went into effect on Sunday. It is an important piece of a bigger effort to protect American jobs by putting a stop to flooding the labor market with foreign workers. For large technology companies, the H-1B visa program is a lifeblood. They depend on it to hire specialized talent, particularly from countries such as India and China.
Under the new policy, companies will have to pay a substantial penalty for failure to comply. This fee guarantees visas for new employees coming to the United States. Previously, the H-1B application fee was much less, easily affordable for companies that rely on foreign staff. This latest action is yet another attempt by the Trump administration to double down on their war against immigrants.
This has been especially true in India, which has lashed out at the decision. Officials’ concerns extend beyond lost revenue to the humanitarian impact of a $150 fee. The Indian government stated that the measure “is likely to have humanitarian consequences by way of the disruption caused for families.” This feeling is indicative of concerns about how the H-1B financial burden might hit families that are dependent upon H-1B visa holders.
There are numerous other changes to the H-1B visa program, but they will make a radical difference to most companies. These companies rely on immigrant talent to continue to grow their workforces. As organizations adapt to this new fiscal reality, many will be forced to reevaluate their staffing plans and staff hiring procedures.
In reaction to these changes, Asia-Pacific stock markets opened to a mixed showing. European stocks—most notably that of Volkswagen, which Porsche controls—responded with substandard returns in response to news of the Trump administration’s crackdown on visas. Our analysts have cautioned that these policies might make it more difficult for international businesses to operate. Moreover, they can limit talent recruitment for companies in tech and other advanced industries.
The H-1B visa program has been critical for American companies to recruit talent. Most importantly, it’s an essential tool for them to acquire specialized skills that are otherwise unavailable in the domestic workforce. The Trump administration is using this new fee to take the side of American workers first. Simultaneously, they are pushing hard against the anti-immigrant structure of the visa system.