President Donald Trump opposes long-standing US immigration rules.
In a September announcement, Trump imposed a one-time $100,000 fee on applications for the new H-1B visa, which allows skilled foreign workers to work temporarily in the United States. The White House alleges that the program was exploited, facilitating the widespread replacement of American workers.
The strangely worded announcement and conflicting comments by Commerce Secretary Howard Lutnick sparked panic among H-1B visa holders, who are unsure whether the new rules apply to them. Many immigration attorneys and companies that employ H-1B visa holders have advised overseas workers to return to the United States before the September 21 announcement deadline.
Two-thirds of the roughly 600,000 H-1B workers work at computer-related or IT companies, according to the Washington-based Economic Policy Institute. Despite clarification that the fee applies only to new applicants, Trump’s announcement is expected to be challenged in the courts. The new fees effectively end the H-1B category, the Cato Institute noted in a critique posted on its website last month.
Kato warned that the new policy would force major technology companies out of the United States, reduce demand for American workers, and disrupt the supply of goods and services in everything from information technology and education to manufacturing and pharmaceuticals. Other business-related think tanks, such as the Peterson Institute for International Economics, the Bush Institute, and the Conference Board, make similar criticisms.
The United States will not be the only country affected by this campaign.
Analysts say India, whose citizens hold about 71% of approved H-1B visas, is likely to shift its economy away from the United States while seeing an uptick in offshoring and an influx of American talent.
“Overall, this policy shifts high-skilled labor away from the United States toward India and other talent destinations, while leaving American companies to grapple with higher costs and tighter labor markets,” says Usha Healey, the Barton Distinguished Chair in International Business at Wichita State University.
