The H-1B visa program, designed for skilled foreign workers, is facing potential changes following an executive order signed by U.S. President Donald Trump. This order introduces a new application fee of $100,000, raising concerns among current visa holders and employers about its impact on the labor market and business operations.
Abhishek Singh, a software engineering manager in Seattle, expressed concern that his startup may not afford the increased costs associated with the new application fee. Although a White House clarification indicated that the fee would initially apply only to future applicants, its long-term implications remain uncertain. The program is predominantly utilized by large tech companies such as Amazon, Microsoft, and Google, which combined secured tens of thousands of visas this year. However, smaller firms and startups are also significantly impacted by such policy changes, with industry experts noting that many will struggle to absorb these fees.
Karen Brady, CEO of Ryther, a nonprofit in behavioral health, highlighted the challenge of hiring under these new financial constraints. Her organization, which relies on H-1B employees to meet the needs of diverse clients, states it cannot afford the fee, potentially halting future hiring through the program. This sentiment is echoed across sectors such as education and healthcare, where the demand for skilled foreign workers is high.
Critics of the new fee argue that it may deter innovation and growth in the U.S. economy. Economist Atakan Bakiskan has downgraded growth forecasts, suggesting the policy could shrink the labor force and negatively affect productivity. Proponents of the fee claim it addresses issues of program misuse, arguing that major tech companies can manage the increased expense.
Overall, uncertainty surrounds the future of the H-1B visa program and its potential effects on both employers and foreign workers. As businesses evaluate their hiring strategies, many are considering relocating their operations internationally.
Source: https://www.bbc.com/news/articles/cdjzrl9kkkmo?at_medium=RSS&at_campaign=rss