H-1B Visa: How It Started and Why It Sparks Disputes। Read the full details

International News: US President Donald Trump has announced a historic increase in the H-1B visa application fee. Until now, this fee ranged from $2,000 to $5,000, but the new decision has increased it to $100,000, which translates to approximately ₹9 million in Indian currency. This change has caused a stir among IT companies in many countries, including India. Thousands of Indians preparing to work in the US on H-1B visas have been dealt a significant blow by this decision. This move reflects the Trump administration's push for US companies to prioritize local talent over foreign workers.

H-1B Visa: The Longest Path to the US

• The H-1B visa was introduced in 1990 under the US Immigration Act. This visa allows foreign skilled workers to work in the US on a temporary basis.
• The US government issues 65,000 to 85,000 H-1B visas each year.
• An additional 20,000 visas are also granted to those with advanced degrees.
• This visa is valid for three years and can be renewed for another three years.

This visa is crucial for Indian professionals, as 73% of H-1B visa holders are Indians. This is why thousands of Indian companies apply for it every April as soon as the visa application process opens.

Trump's Argument: Why American Jobs in Foreign Hands?

• The Trump administration claims that IT companies have abused the H-1B visa system.
• The share of H-1B workers in the IT sector has increased from 32% in 2003 to over 65% in the last five years.
• Foreign workers are willing to work for lower wages. The average H-1B employee's starting annual salary is $97,000, while the minimum salary for American employees is set at $100,000.
• Many companies are shutting down their IT departments and laying off American employees to outsource them to cheaper foreign workers.
• US Commerce Secretary Howard Lutnick said, "Foreign workers are willing to work for as little as $60,000. This is putting American citizens' jobs at risk."

Salary vs. Visa Fees: Now Equal or More

Following the new decision, visa fees have increased so much that they are equal to or more than the annual salary of many employees.

• Previously, the fee was around ₹6 lakh.
• Now, it has increased to ₹9 million.
• This means that it will become extremely expensive for companies to send each foreign employee to the US. Many experts believe that this decision signals the gradual dismantling of the H-1B visa system.

Number of Indians Working in the US

• Currently, 300,000 Indians are working in the US on H-1B visas.
• Each year, 85,000 visas are awarded to candidates from around the world through a lottery system.

Top H-1B Visa Holding Companies (2023):

Company                       Number of Indian Employees

• Amazon                    10,044
• TCS                            5,505
• Microsoft                     5,189
• Meta (Facebook)        5,123
• Apple                          4,202
• Google                        4,181
• Delight                        2,353
• Infosys                        2,004
• Wipro                          1,523
• Tech Mahindra USA      951

Country Share: India Leads

Country               Percentage

• India                           73%
• China                         12%
• Canada                        1%
• Philippines                   1%
• South Korea                 1%
• Other Countries           12%
• It is clear that Indian professionals use this visa the most.

Why the Controversy Over the H-1B Visa?

• The H-1B visa has long been a subject of controversy.
• Critics argue that this visa threatens the jobs of American workers.
• Companies hire foreign workers at lower wages, thus eliminating local employees.
• The exploitation of visa holders and the long wait times for the green card process are also concerns.
• Supporters, meanwhile, believe this visa promotes innovation and growth in the US economy.

Year-by-Year Changes in Visa Numbers

• 400,000 H-1B applications were approved in 2024.
• This number peaked in 2022—442,425 applications were approved.
• Since 2013, the majority of approvals have been for renewals.
• In 2024, 65%, or 258,196, were for renewals, while 35%, or 141,207, were new applications.

The rejection rate also saw significant changes:

• 2018 (Trump's first term): 15%
• 2022: 2% (lowest)

Key Events in H-1B History

• 1990: Program launched with the Immigration Act.

• 2000s: Tech boom drives massive demand for H-1B visas.

• 2017-2020: The Trump administration tightens rules, increases scrutiny, and raises rejection rates.

• 2022: Rejection rates fall to historic lows under the Biden administration.

• 2025: Proposal to increase fees sharply, sparking global concern.

Indian IT companies most affected

Major Indian IT companies, such as TCS, Infosys, Wipro, and Tech Mahindra, send thousands of employees to the US every year.

Such a significant increase in fees would:

1. Substantial increase in companies' operating costs.
2. It would become nearly impossible for small startups and mid-sized companies.
3. The current outsourcing model could change completely.

American Citizens' Opinions

According to an August 2024 Pew Research survey: 40% of American citizens believe that skilled workers should be given the highest priority in legal immigration. 60% believe that legal immigrants fill jobs that American citizens are unwilling to do.