$100,000 fee for companies hiring H-1Bs: What does this mean? What is the present cost?

In a major overhaul of the H-1B program, President Donald Trump is planning to add $100,000 application fee for the program, and may sign the proclamation Friday, reports, quoting a White House official said. This will be a steep jump costing companies a bomb if they want to hire foreign talent under the H-1B visa program.

The current fee is around $1,000 for an initial application. It is not yet known whether $100,000 is for every applicant or for certain types of petitions.


What is the present fee?

Currently it takes $215 fee to register for the lottery and a $780 fee for a Form I-129 -- a petition for a non-immigrant worker filed by an employer sponsor.

How will it impact US companies, H-1B hirings?

While most details of this new measure are not known, this will discourage companies from reducing the number of applications as companies hiring foreign workers under H-1B would have to pay a much larger upfront cost. Because of the cost, fewer applications may be filed; it could particularly hurt start-ups or small businesses less able to absorb the cost.

For American tech workers, it will be good news and companies will now turn towards them.

Hiring foreigners equally costly under new rule

Companies have been abusing the H-1B visa program by hiring foreigners at a cheaper rate for entry-level roles to save money, as they would have to pay Americans much higher wages for the same role. But the $100,000 fee would make hiring foreigners equally costly. People who rely on H-1B sponsorship (e.g. in tech, research, etc.) could see fewer opportunities or more competitive pressure.

The move comes as there have been demands to end H-1B programs altogether -- given US' present relationship with China and India, as mostly Chinese and Indians get hired under H-1B program for US tech sector. The administration was already planning to cancel the lottery system and raise the wage level so that only high-wage and high-skill people are brought in from foreign countries while American graduates get entry-level jobs.