H‑1B visa
Why in news?
The most significant recent change to the H‑1B visa program is the implementation of a $100,000 one-time fee for all new H‑1B visa applications submitted after September 21, 2025, as mandated by a proclamation signed by US President.
Impact on India
- Over 70% of H-1B visa holders are Indian professionals, particularly in IT and engineering. The abrupt fee hike has caused panic among prospective applicants and their families.
- Indian IT service companies, startups, and tech professionals who rely on H-1B pipelines for global talent mobility and business operations will face massive added costs, potentially between $150–$550 million per year for larger firms.
- Possible consequences include fewer new Indian tech workers in the US, reduced remittances, disrupted family reunification, and a chilling effect on India-US talent flow.
- The Indian government expressed concern over the humanitarian and economic implications, with policymakers in India and the US expected to consult further.
Impact on the United States
- US tech companies—especially those hiring large numbers of foreign skilled workers—face much higher barriers to hiring Indian talent, risking reduced innovation, competitiveness, and workforce diversity.
- Smaller firms and startups are likely to suffer disproportionately, while larger companies may pass costs onto clients or reduce hiring.
- The fee is intended to encourage hiring of US workers but may also reduce the number of high-value, global-skilled professionals entering the US, impacting economic growth in Silicon Valley, research, and hospitals.
- US companies are rapidly reassessing hiring strategies and mobility plans in response.
Overview H-1B visa
- The H-1B visa permits U.S. employers to hire foreign workers for specialty occupations involving theoretical and practical application of specialized knowledge.
- Occupations usually require at least a bachelor's degree or its equivalent.
- The visa is employer-sponsored; the employer must file petitions with U.S. Citizenship and Immigration Services (USCIS).
- The H-1B visa is initially granted for 3 years and can be extended for up to 6 years in total.
- It has "dual intent" status, allowing holders to seek permanent residence (green card) while on H-1B.
Annual Cap and Lottery
- The annual cap is 65,000 visas.
- An additional 20,000 visas are available for individuals with a U.S. master's degree or higher.
- If the number of petitions exceeds the cap, a random lottery selects petitions for processing.
- Certain employers like universities and research institutions are exempt from the cap.
Dependents
- Spouses and unmarried children under 21 of H-1B visa holders are eligible for H-4 dependent visas.
- H-4 visa holders can attend school but generally cannot work unless they obtain special employment authorization under certain conditions.
This fee and related restrictions create considerable challenges for Indian professionals and US employers relying on skilled foreign workers, potentially impacting the technology sector and bilateral relations.
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