(source : ANI) ( Photo Credit : ani)
US President Donald Trump has rolled out a bold new rule shaking up the H-1B visa program, hitting companies with a hefty $100,000 fee for each application. Announced on Friday, this move takes effect September 21 and targets what the administration calls widespread abuse in bringing skilled foreign workers to America, especially in tech and IT fields.
The goal? Protect American jobs and ensure the H-1B system lives up to its original purpose: filling gaps with top global talent on a temporary basis. Trump officials argue the program has been twisted by outsourcing firms to replace US workers, drive down wages, and even spark national security headaches.
Take the numbers: Foreign workers in STEM jobs—science, technology, engineering, and math—more than doubled from 2000 to 2019, while overall STEM job growth didn’t keep pace. In computers and math alone, foreign hires jumped from 17.7% of the workforce in 2000 to over 26% by 2019. Tech companies now snag more than 65% of H-1B approvals, up from 32% in 2003, according to the proclamation.
Many of these firms, the administration says, lay off American staff while boosting H-1B hires. One study highlights how companies save up to 36% by opting for entry-level H-1B workers over full-time US hires. This leads to closing IT departments, firing locals, and outsourcing to cheaper foreign labor. The order points to real stories of American workers training their replacements before getting the boot, often under gag orders in severance deals.
It’s hurting US college grads too, especially in computer science and engineering, where unemployment tops 6%—higher than some other fields. Flooding the market with lower-wage foreign workers, the thinking goes, discourages Americans from entering tech and stalls pay raises.
National security is another big worry. Investigations have uncovered visa fraud, money laundering, and even RICO violations among H-1B-heavy outsourcing companies. Relying on this setup, Trump warns, could weaken America’s tech edge and resilience.
Under the new rules, employers must prove they’ve paid the $100,000 fee when submitting H-1B petitions. The US Department of Homeland Security and State Department will enforce it, blocking entry for anyone whose sponsor skips the payment. Future changes could tweak wage rules to focus on high-skilled, high-paid talent only.
Exemptions might apply if the Homeland Security Secretary decides hiring an H-1B worker serves the national interest without security risks—but those will be few and far between.
Critics aren’t sold. They say cracking down on fraud is fine, but this steep fee could scare off genuine talent and slow US innovation in sectors that thrive on foreign expertise. Will it safeguard American jobs or push companies and brains abroad? Time will tell, but the Trump team is doubling down on tighter immigration to balance foreign skills with homegrown security.
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