Tech Firms face scrutiny as New Visa Costs Take Effect
WASHINGTON - A new policy impacting H-1B visas went into effect on Sunday, September 21st, triggering a scramble among U.S.-based technology companies reliant on foreign workers. The increased costs associated with renewing adn extending visas are disproportionately affecting major players like Meta, Amazon, and Microsoft, alongside a broader range of employers.
The financial burden stems from a recent rule requiring companies to pay the full visa fee each time an H-1B petition is extended, rather then the previous system of reimbursement for certain extensions. This change primarily impacts employees originating from India, with Amazon and amazon Web Services accounting for approximately 12,000 H-1B visas, and Microsoft and Meta collectively holding over 5,000. Companies are now navigating the complex decision of whether to absorb these costs, pass them onto employees, or potentially reduce their foreign workforce.
Beyond the immediate financial implications, the policy shift underscores growing scrutiny of H-1B visas-a key pathway for skilled foreign workers in specialized fields-and its potential impact on the U.S. tech industry’s global competitiveness.The situation is unfolding as Great Britain announced a notable investment in palantir, a data analytics firm, signaling a different approach to attracting and retaining technology talent.