Trump's Proposed $100,000 H-1B Visa Fee May Backfire, Think Tank Warns
A U.S. proposal to raise H-1B visa fees to $100,000 per worker will likely hurt the American economy more than India, according to the Global Trade Research Initiative (GTRI). The think tank argues that the exorbitant fee would make hiring on-site talent prohibitive, forcing U.S. firms to accelerate offshoring work to India. This could lead to fewer H-1B petitions, slower innovation in the U.S., and ultimately benefit India by encouraging the return of top tech talent.
Unpacked:
Many U.S. tech leaders argue the fee makes it prohibitively expensive to hire foreign talent, particularly for startups and smaller companies, potentially stifling innovation and economic competitiveness in sectors like Silicon Valley that rely on H-1B workers.
The H-1B visa program is predominantly used in the tech sector, but also benefits hospitals needing foreign nurses and universities working with international researchers. Major tech companies and startups are the primary users.
Supporters claim the higher fee forces companies to focus the program on high-value jobs, prioritize truly essential foreign hires, and reduces potential abuse of the system by limiting unnecessary applications.
Research indicates H-1B workers fill employment gaps, especially in STEM fields, complement U.S. workers, and help expand overall job opportunities and economic growth.