On Friday, US President Donald Trump shook the Tech Industry when he announced that now companies have to pay an annual fee of $100,000 for every H-1B visa they apply. As soon as this announcement was made, Google searches related to “H1B news” quickly skyrocketed across the globe. As US companies hire tech professionals from around the world, this search volume made sense to many who are following this news. India and China topped the search charts as many from these two countries depend on this program to work in the United States. Howard Lutnick, the US Commerce secretary, confirmed that all the major companies registered in the USA have to abide by this new rule.
As soon as the news was announced, the US tech sector found itself in the middle of a strong debate. The debate mostly related to whether the move was ethical or just another political gimmick to attract the vote bank. Why it has jolted the US tech industry can be understood by the fact that this industry is highly dependent on skilled foreign workers. These workers make it to the USA through the H-1B program. These workers are now worried that the companies might not be willing to pay this much for their visas, putting their future in jeopardy. Experts believe that this new H1B visa rule can put greater pressure on startups, which now hire foreign workers in large numbers.
Trump supporters are of the view that this move can significantly protect the interests of the native Americans. Critics argue that lenient H1B visa rules allow companies to hire foreign workers at a much lower rate. Though from the lens of the companies, it is a beneficial move as it saves the company’s cost, however, it goes against the interests of the indigenous people. Critics argue that this new visa rule will increase the hiring rates of native Americans in tech companies. However, the top venture capitalists of America have warned that such a move can become a hindrance in attracting top talent from across the globe, leading to fewer innovations.
Unsurprisingly, the venture capitalist community of the USA is seeing this as troubling US H1B news, as the economy can be negatively affected if there is a barrier to hiring the top global talents. As this move can have a severe impact on the US economy, the news on the H1B visa is making headlines in every major paper. Economists have also raised a question mark on the legal aspect of such a fee being imposed on the companies. The American Immigration Council, too, has voiced its concerns by citing that the president can not suddenly put such a massive financial burden on the companies. The main argument here is that the current H1B visa rules only cover the paperwork cost, which is nowhere close to $100,000.
The main reason why H1B visa applicants are protesting this move is that in the lottery system of visa processing, most of the employee cost is covered by the employer. However, as the new H1B visa rule is set to kick in, employees fear that they will miss out on many of the previous benefits. Even lawyers have termed this new H1B visa news 2025 as confusing because of the lottery reforms. However, political experts are of the view that it is all part of Trump’s larger plan to check the high rates of immigration in the country. This latest news on H1B visas has certainly put the US’s green card aspirants’ future in jeopardy.