$103,265 H-1B fee: Indian IT firms face fresh US challenge
What's the story
The United States Department of Homeland Security (DHS) has proposed a new fee of $103,265 for all cap-subject H-1B visa petitions. The move is aimed at significantly increasing the cost of hiring skilled foreign workers. This proposed fee would be paid at the time of filing and would be in addition to all existing H-1B filing fees and other applicable payments.
Financial impact
Fee applicable to both regular and advanced degree H-1B caps
The proposal covers both the regular H-1B cap of 65,000 visas and an additional 20,000 visas for foreign workers with advanced degrees from US institutions.
The DHS estimates that this fee could generate around $8.8 billion annually, based on approximately 85,000 cap-subject petitions.
However, it would not apply to petitions exempt from the annual cap such as those involving higher education institutions and nonprofit research organizations.
Legal context
New fee proposed after previous attempt blocked by court
This new fee proposal comes after a federal judge blocked an earlier $100,000 H-1B fee imposed by the Donald Trump administration. The previous fee was ruled as lacking authority.
The current proposal is being pursued through a formal rulemaking process to establish a separate fee regime for cap-subject H-1B petitions.
Hiring impact
Increased costs may deter companies from hiring international workers
The higher costs of sponsoring an H-1B worker may deter companies from hiring international workers.
This could also affect those hoping to work in the US, especially Indians who make up a large part of H-1B beneficiaries.
The proposal is not yet final and will be open for public comments before DHS decides whether to issue a final rule.
Economic effect
Major economic impact on small employers expected
The proposed fee is expected to have a major economic impact on some employers, especially smaller companies.
According to DHS estimates, 14,541 small entities would be affected by this proposal, and 76% of them would see a cost increase greater than 1% of their annual revenue.
DHS argues that demand for H-1B workers remains strong enough to sustain filings at the current levels with the higher cost.