Trump administration proposes hike in H-1B visa application fees

Friday, May 10, 2019

Labour Secretary Alexander Acosta told US lawmakers that there will be a hike in the H-1B visa application fees. In order to increase the funding for the expansion of an apprentice programme the Trump administration has proposed a hike.The apprentice programme  trains American youths in technology related activities.

Beginning October 1, 2019 the beginning of the fiscal year 2020 it will be testified before the Congressional committee on annual budget of the Department of Labour.

The details of the proposed increase in H-1B filing fee and the categories of applicants on which it would be enforced on were not provided.

It is likely that the Indian IT companies accounting for a large number of H-1B applications would be facing additional financial burden due to the proposed increase in H-1B filing fees.

Technology companies depend on H-1B visa to hire thousands of employees each year from countries like India and China. It is a non-immigrant visa allowing US companies to employ foreign workers in specialty occupation.

The Trump administration has tightened the noose around the H-1B visa programme solely as it hurt American workers by competing for jobs and driving down wages.

It was reported that last year immigration officials denied nearly one out of every four requests for new visas for skilled foreign workers.

Acosta in his testimony on May 2 before the Senate Appropriations Committee — Subcommittee on Labour, Health and Human Services, Education and Related Agencies said that in  FY 2020, the Department’s budget includes USD 160 million to continue their  expansion of apprenticeship programmes, along with a proposal to increase H-1B fee revenues to fund additional apprenticeship activities.

The Department of Labour last year had launched the first-ever sector-based apprenticeship grant funding opportunity to invest USD 150 millions. This was to expand apprenticeships in those in-demand industry sectors taken over by the individuals on H-1B visas including information technology,healthcare etc.

There will be an innovative approach through the grant funding which will be a 35 percent private-sector match requirement. The total investment comes to USD 202.5 million and USD 57.7 million coming from the private sector.

Acosta said that due to the private sector match requirement the educators will have a greater incentive to join the industry. They will further ensure that the curricula addressed the needs of the workplace, investigate in latest technologies and techniques along with providing more in-demand opportunities for Americans.

To ensure greater transparency and better protect American workers from employers seeking to misuse the programe the Labour Department has made changes to the H-1B application forms.

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