U.S. Government Accountability Office from Washington, DC, United States, Public domain, via Wikimedia Commons
By: TPS Staff
On Friday, September 19th, President Trump and Commerce Secretary Howard Lutnick signed a proclamation that charges a one-time fee of $100,000 for companies sponsoring those seeking H-1B Visas.
The H-1B program is designed to allow U.S. employers to hire nonimmigrant workers with specialized skills. Primarily serving industries in need of highly educated professionals, including technology, science, engineering, and mathematics (STEM). Currently, the program is capped at 65,000 new visas annually, with an additional 20,000 reserved for those with a master’s degree or higher.
The administration has voiced concerns over the misuse of the visa program, asserting that companies are replacing U.S. workers rather than supplementing them. Studies have shown that while the number of foreign workers on H-1B visas has risen, many companies have simultaneously laid off American workers. This raises concerns about the impact on wages and job opportunities for U.S. citizens.
The administration argues that the influx of foreign workers is exacerbating issues related to wage stagnation and outsourcing, particularly in fields like Information Technology (IT). Additionally, there are fears that this trend could undermine national security, as companies increasingly outsource key functions to foreign workers.
Between 2000 and 2019, the number of foreign STEM workers in the U.S. doubled, yet employment in these sectors only increased by 44.5%. This discrepancy has led some to question whether the influx of foreign workers is truly benefiting the U.S. economy or merely replacing qualified American professionals with lower-paid foreign labor. The IT sector, in particular, has seen significant outsourcing, with many companies shifting jobs overseas in search of cost savings. At the same time, unemployment rates for computer science and computer engineering professionals have remained high, raising concerns about the program's impact on American workers.
The H-1B Visa program has historically been a pathway for many companies to allow foreign professionals to enter the country for work. The fee structure, which is authorized by Congress and collected by the U.S. Citizenship and Immigration Services, was originally to cover the cost of administering the program. Companies that sponsor specialty workers would typically pay fees anywhere from $2,000 to $2,500, a drastically lower number than what has been passed. This is raising questions around the legality of the framework to change the fee (especially of this amount) and if the president has the power to do so.
The announcement surrounding the fee increase was met with confusion and panic, as details from the White House briefing changed rapidly. Early statements from Lutnick indicated that the fee would be an annual charge, but this was later clarified by the White House to be untrue. This left many unsure of how the fee would be applied in different circumstances. The uncertainty was further exacerbated by the looming deadline, which prompted specialty workers (many of whom were abroad) to rush back to the U.S. to avoid missing the deadline.
Many workers received urgent notifications from their employers and peers, urging them to return before the new fee went into effect. This widespread confusion underscored the need for clearer communication from the government, as U.S. employers may have many roles to fill.
