• The Trump administration’s sudden announcement of a $100,000 fee on H-1B visas has sparked widespread concern and confusion among workers, companies, and policymakers.

About H-1B Visa

  • The H-1B visa was established in 1990 as part of a broader set of immigration reforms implemented during President George H.W. Bush’s administration
  • The H-1B visa allows foreign workers to be employed by a U.S. company for a temporary period.
  • Unlike the L and E visas, this visa does not impose special conditions or restrictions on the U.S. employer.
  • The applicant faces fewer eligibility requirements and does not need to hold a managerial position within the U.S. company.

The Importance of the H-1B Visa Program

  • A Critical Pathway for Skilled Workers: The H-1B visa program has been instrumental in allowing highly skilled professionals, especially from India, to contribute to critical sectors such as technology, healthcare, and engineering in the US.
  • India’s Transformation through the H-1B Pipeline: For India, the H-1B has been more than a visa—it has been a gateway to socioeconomic mobility, driving growth in the IT sector and expanding the country’s middle class.

Origins of the Majority of H-1B Visa Holders

  • Indians received the majority of approved H-1B visas, making up 71 percent of the total in 2024.
  • Chinese nationals were the second largest group, accounting for 11.7 percent of approved visas.
  • Filipinos, Canadians, and South Koreans followed, representing smaller shares of approximately 1.3 percent, 1.1 percent, and 1 percent respectively.

Consequences for the US Economy and Innovation

  • Threat to the Tech Industry: US companies, especially startups and mid-sized firms, face a dilemma: bear the additional costs or offshore critical operations, potentially weakening America’s technological leadership.
  • Strain on Healthcare and STEM Fields: Indian-origin doctors, a significant segment of the US healthcare workforce, could find it harder to obtain visas, worsening existing doctor shortages.
    • Similarly, fewer international STEM students might opt for US education, leading to a talent deficit.
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