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The cost of obtaining an H-1B visa will jump considerably if a fee increase in President Donald Trump’s proposed fiscal year 2020 budget is approved.
A portion of the overall H-1B fees would double, with the additional revenue directed toward education, and training for science, technology, math and engineering jobs.
Application fees for the H-1B — a controversial visa intended for jobs requiring specialized skills — currently include $750 for smaller companies and $1,500 for larger firms, to pay for scholarships and job training under the American Competitiveness and Workforce Improvement Act. The administration’s proposal would require companies with 25 or fewer U.S. workers to pay $1,500 and firms with more than 25 workers to pay $3,000.
It was not immediately clear exactly how the extra money would be spent. The Department of Labor’s 2020 budget request says the revenue would help “prepare American workers for jobs that are currently being filled by foreign workers, especially in STEM fields.”
Prepared remarks by Secretary of Labor Alexander Acosta submitted for a U.S. Senate subcommittee hearing May 2 suggested that the revenue raised by the fee increase would go to apprenticeship programs.
The White House budget proposal said 15 percent of the money raised would go to state career and education grants.
The Labor Department and White House did not immediately respond to questions about where the money would go.
The Trump Administration’s budget proposal is under discussion in the House of Representatives and the Senate, which typically produce their own budget plans, with the final budget dependent on negotiations. The process is supposed to conclude by June 1, but according to the Tax Policy Institute, rarely does.
Critic say the H-1B, widely used by Silicon Valley technology firms, is a mechanism for supplanting U.S. workers with cheaper foreign labor, and driving down wages. Tech companies have pushed for an expansion to the 85,000 annual cap on new visas, arguing they need to use the H-1B to secure the world’s top talent. Critics point to reported abuses, including allegations that outsourcing companies have forced American workers to train their H-1B-carrying replacements.
