Published · 20h agoInvest2 min read
The charge is 20 to 50 times current levels and is being pushed through despite adverse rulings. What it reprices is not the paperwork but where companies put the work.
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Run $103,265 across the 399,395 H-1B petitions approved in fiscal 2024 and the gross is about $41.2 billion [1], nearly five times what Homeland Security told Congress the fee might raise [6][10]. The gap is where the exemptions live. The department says the charge may not apply to renewals, or to foreigners hired by hospitals and universities that struggle to staff [5]. For the projection to hold, the overwhelming majority of last year's approvals have to sit outside the new fee, which means the money is meant to come almost entirely from fresh lottery winners [6].
The aggregate is not the number that changes behaviour. Korean nationals accounted for 3,983 approvals in fiscal 2024, one percent of the total [9]; at the new rate that cohort alone would cost about $411 million [3]. Indian nationals, at 283,397 approvals and 71 percent [8], would carry roughly $29.3 billion [4]. No single employer faces those totals, but every employer faces the per-head version, and per head is where staffing plans break.
The last round showed what companies do first. Immediately after the September proclamation setting the fee at $100,000, Microsoft, JPMorgan, Amazon, Google, Ernst & Young and Walmart told H-1B holders to avoid overseas travel and to come back if they were abroad [14][11]. Freezing mobility is free. Paying six figures a head is not, and the rule now extends the charge to applicants already inside the United States, who previously did not pay it [4].
The legal position has not improved for the government, which is what makes the sequencing interesting. Federal courts have blocked the fee repeatedly, and a Massachusetts federal court ruled in June that it was an illegal tax Congress never approved [13]. The rule was published a month before the proclamation's one-year term expires and is expected to be finalised around year-end after a 30-day comment period [11][12]. A proclamation lapses on a date; a regulation does not. The administration is trading a time-limited instrument for one that has to be litigated down, and the money is earmarked for agencies including ICE [10]. The Korea Economic Daily reads the timing as a signal to the base before November's midterms and as partial cover for the federal deficit [17].
Companies that treat this as a legal story wait for a ruling. Companies that treat it as a cost story move the role. One concern raised after the proclamation was that Indian and Chinese specialists who give up on the H-1B end up working for competitors of the United States, including China [15]. That is the outcome the fee schedule prices, whether or not it survives.
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The U.S. Department of Homeland Security published a rule in the Federal Register imposing a $103,265 charge on applicants for the H-1B visa, according to Reuters and The Wall Street Journal on the 24th.
The Trump administration decided to push ahead with raising the professional-visa fee to more than $103,000, 20 to 50 times the current level, despite courts ruling the move unlawful.
The department expanded the fee to applicants inside the United States, beyond the overseas applicants who paid it previously.
The new fee applies to most new applicants but may not apply to those renewing visas or to foreigners hired by hospitals and universities, which have difficulty securing staff.
The H-1B is issued for specialized STEM occupations, only 85,000 are issued each year through a lottery, and it permits an initial three-year stay that can be extended, with holders able to apply for permanent residency.
The reporting this story was synthesized from, earliest first. Every link goes to the original.
Cited in this coverage: Reuters and The Wall Street Journal, as reported by en.sedaily.com
Cited in this coverage: Associated Press, as reported by en.sedaily.com
Cited in this coverage: en.sedaily.com
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