Trump-Era Visa Fee Reinstated, Threatening Tech and Healthcare Sectors
WASHINGTON – A $100,000 fee on H-1B visas, initially proposed during the Trump management and now reinstated by the Biden administration, is poised to significantly impact American businesses reliant on skilled foreign workers, especially in the technology and healthcare industries. The fee, set to take effect May 29, applies to companies with 50 or more employees who employ H-1B visa holders.
Economists previously warned that worker shortages couldn’t be resolved without increased immigration. this new fee arrives as some sectors are still grappling with labor gaps, possibly exacerbating existing challenges and hindering economic growth. The US Chamber of Commerce estimates businesses were already “turning down work” in 2021 due to a lack of available workers, and this fee could worsen the situation.
The reinstated fee aims to fund the Department of Homeland Security’s (DHS) efforts to combat fraud in the H-1B visa program. DHS claims the additional revenue will support investigations into visa abuse and ensure the program benefits American workers. However, critics argue the fee is excessive and exceeds the actual cost of fraud detection.
“To be clear,the president has literally zero legal authority to impose a $100,000 fee on visas,” stated Aaron Reichlin-Melnick,senior fellow at the American Immigration Council,on X (formerly Twitter). “The only authority Congress has ever given the executive branch here is to charge fees to recover the cost of processing the application.”
The policy is expected to face legal challenges.Opponents argue the administration is overstepping its authority and imposing a financial burden that will stifle innovation and competitiveness. Neil Bradley, chief policy officer at the US Chamber of Commerce, told CNN in 2021 that businesses were struggling to meet demand due to worker shortages. The new fee could further restrict access to crucial talent, potentially leading to project delays, reduced investment, and increased costs for consumers.
