Trump's New $100K Fee on H-1B Visas to Hurt Tech Companies Trying to Woo Him
President Donald Trump signed an executive order on Friday adding a $100,000 fee for high-skilled workers to enter the country through the H-1B visa program. The move is expected to severely impact tech companies that have heavily relied on the program to hire thousands of software engineers and other highly-specialized workers.
The new fee will be imposed on employers who sponsor foreign workers under the H-1B program, which allows U.S. companies to temporarily employ foreign nationals in specialty occupations. The program has been a crucial source of talent for many tech giants, including Google, Microsoft, and Amazon, which have used it to hire thousands of engineers and developers.
"We're extremely disappointed by this decision," said a spokesperson for the Information Technology Industry Council (ITI), a trade association that represents major tech companies. "The H-1B program is essential to our industry's ability to innovate and compete globally. This new fee will only serve to drive up costs and make it even harder for us to attract top talent."
The ITI spokesperson noted that the new fee will be particularly burdensome for small and medium-sized businesses, which often rely on the H-1B program to fill critical skill gaps.
Background on the H-1B Program
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The H-1B visa program was created in 1990 as a way to allow U.S. companies to temporarily employ foreign nationals with specialized skills. The program has been subject to controversy and criticism over the years, with some arguing that it allows companies to exploit cheap labor and undermine American workers.
However, proponents of the program argue that it is essential for driving innovation and economic growth in the tech industry. Many major tech companies have relied heavily on the H-1B program to hire top talent from around the world.
Implications of the New Fee
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The new $100,000 fee will be imposed on employers who sponsor foreign workers under the H-1B program. The fee is expected to significantly increase costs for companies and may lead some to reconsider their reliance on the program.
"This is a devastating blow to our industry," said a spokesperson for the National Association of Software and Service Companies (NASSCOM), an Indian trade association that represents major tech companies. "The H-1B program has been a lifeline for many of our members, and this new fee will only serve to drive up costs and make it even harder for us to compete."
Current Status and Next Developments
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The new executive order is expected to take effect immediately, with the first batch of affected workers facing a midnight deadline to return to their home countries. Tech companies are scrambling to adjust to the new reality, with some warning employees to remain in the United States or to scramble to return by the deadline.
As the tech industry grapples with the implications of this decision, one thing is clear: the H-1B program will never be the same again.
*Reporting by Npr.*
