The Indian government raised concerns over President Donald Trump's recent immigration policy changes, particularly his decision to significantly increase fees for H-1B visas essential for tech workers from India and other countries. Signed into law on a Friday, Trump's proclamation sets the annual fee for H-1B visas at $100,000, a dramatic increase from the previous fee of $215. Additionally, a new "gold card" visa, costing $1 million, was introduced for wealthy individuals, with these policy changes expected to face legal challenges amid criticism that they bypass Congress.
The Indian Ministry of External Affairs indicated that the implications of Trump's policy adjustments were being closely evaluated, especially by the Indian industry. The ministry expressed concerns about potential humanitarian consequences stemming from disruptions in family unity due to these changes, hoping that U.S. authorities would address these issues adequately.
Critics of the H-1B program argue that it undermines American workers by importing employees willing to work for lower wages, often around $60,000 annually, versus the higher salaries typically earned by U.S. tech workers, which exceed $100,000. Trump, however, asserted that these changes would not face resistance from the tech industry and claimed endorsement from major players. However, representatives from leading tech companies like Amazon, Apple, Google, and Meta did not provide immediate comments, while Microsoft chose not to comment at all.
Commerce Secretary Howard Lutnick noted that the significant increase in visa fees could lead to a substantial reduction in the number of H-1B visas issued, estimating that companies may no longer find it economically viable to acquire these visas. Lutnick stressed that companies would likely shift their focus to training American workers instead. If needed engineers are brought in, they would incur the new $100,000 fee for H-1B visas.
In addition to the H-1B visa changes, Trump introduced the "Platinum Card," priced at $5 million, allowing foreign nationals to reside in the U.S. for up to 270 days without being taxed on non-U.S. income. This platinum card is a replacement for a previously announced $5 million gold card for investors. The administration indicated that while changes to H-1B fees could be executed by presidential order, the platinum card would require congressional approval.
The lottery system for H-1B visas, which has been a longstanding process, saw Amazon emerge as the top recipient this year with over 10,000 awarded, followed by Tata Consultancy, Microsoft, Apple, and Google. It has been noted that California hosts the highest number of H-1B workers. Critics argue that many H-1B visas are allocated to entry-level positions rather than high-skill roles, enabling companies to pay less by categorizing jobs at minimum wage levels, even if the employees possess significant experience.
As a result, many U.S. organizations prefer to contract services such as help desk support and programming tasks to consulting firms like Wipro, Infosys, HCL Technologies, Tata in India, as well as IBM and Cognizant in the U.S. Ron Hira, a political science professor at Howard University and a known critic of H-1B visas, acknowledged that Trump's plan represents a recognition of the program's misuse. He suggested that while the fee increase is unconventional as a reform measure, it signals a step toward addressing H-1B program deficiencies.
Historically, critics have called for an auction-based system to replace the lottery for H-1B visas, which would allow companies to bid for the right to bring in foreign workers. The conversation around visa allocations has intensified following the recent drop in lottery entries by 40%, attributed to the eradication of practices wherein individuals submitted multiple applications to enhance selection chances. The U.S. Citizenship and Immigration Services addressed concerns of fraud by limiting each applicant to a single lottery submission.
The labor group AFL-CIO has indicated that while some changes have been made to the lottery process, much more needs to be done to ensure that visa awards are given to companies paying higher wages instead of relying on a random selection system. This aligns with the objectives presented during Trump’s first term, highlighting ongoing challenges and discussions surrounding the future of the H-1B visa program and its implications for both U.S. and foreign workers.
