US President Donald Trump’s decision to increase visa sponsorship fees has triggered concern from the US Chamber of Commerce, which warned of widespread consequences for workers, families, and businesses. Trump signed an Executive Order raising the fee for companies sponsoring H-1B applicants to $100,000, a sharp jump from the current level of around $2,000 to $5,000.
“We’re concerned about the impact on employees, their families, and employers. We’re working with the Administration and our members to understand the full implications and the best path forward,” the Chamber of Commerce said in response.
The proclamation, which takes effect immediately, stipulates that the total fee for three years of H-1B sponsorship will amount to $300,000, according to Commerce Secretary Howard Lutnick. The move is part of Trump’s broader effort to crack down on immigration, with the White House arguing that the visa system has been exploited to undercut American workers. Trump said the H-1B programme, designed to bring in specialised, high-skilled talent, had been abused to replace Americans with “lower-paid, lower-skilled labour,” undermining both economic and national security.
India, which has long been the largest beneficiary of the H-1B programme, reacted with concern. “This measure is likely to have humanitarian consequences by way of the disruption caused for families,” External Affairs Ministry spokesperson Randhir Jaiswal said, adding that the government hoped “these disruptions can be addressed suitably by the US authorities.” New Delhi has instructed its missions to assist Indian nationals attempting to return to the US before the new rules come into force.
Industry groups have also warned of major disruption. Nasscom, representing India’s $283 billion IT sector, said: “A one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world. Policy changes of this scale are best introduced with adequate transition periods, allowing organisations and individuals to plan effectively and minimise disruption.”
Indians account for more than 70 per cent of H-1B visa holders, according to US Citizenship and Immigration Services. The sudden fee hike is expected to affect Indian technology companies most severely, with both Indian and American industries now weighing the implications as they look for ways forward.
“We’re concerned about the impact on employees, their families, and employers. We’re working with the Administration and our members to understand the full implications and the best path forward,” the Chamber of Commerce said in response.
The proclamation, which takes effect immediately, stipulates that the total fee for three years of H-1B sponsorship will amount to $300,000, according to Commerce Secretary Howard Lutnick. The move is part of Trump’s broader effort to crack down on immigration, with the White House arguing that the visa system has been exploited to undercut American workers. Trump said the H-1B programme, designed to bring in specialised, high-skilled talent, had been abused to replace Americans with “lower-paid, lower-skilled labour,” undermining both economic and national security.
India, which has long been the largest beneficiary of the H-1B programme, reacted with concern. “This measure is likely to have humanitarian consequences by way of the disruption caused for families,” External Affairs Ministry spokesperson Randhir Jaiswal said, adding that the government hoped “these disruptions can be addressed suitably by the US authorities.” New Delhi has instructed its missions to assist Indian nationals attempting to return to the US before the new rules come into force.
Industry groups have also warned of major disruption. Nasscom, representing India’s $283 billion IT sector, said: “A one-day deadline creates considerable uncertainty for businesses, professionals, and students across the world. Policy changes of this scale are best introduced with adequate transition periods, allowing organisations and individuals to plan effectively and minimise disruption.”
Indians account for more than 70 per cent of H-1B visa holders, according to US Citizenship and Immigration Services. The sudden fee hike is expected to affect Indian technology companies most severely, with both Indian and American industries now weighing the implications as they look for ways forward.
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