Employers concerned about impact on organisations
The United States has announced a massive US$100,000 payment for the entry of skilled foreign workers under a nonâimmigrant visa amid employers' alleged abuse of the system.
US President Donald Trump signed a proclamation on Friday requiring a $100,000 payment for new visa applications to the country's H-1B programme starting September 21.
The H-1B is a non-immigrant visa in the US that allows employers to hire foreign workers in specialty occupations, allowing them to stay in the country for up to three years.
Trump's recent proclamation imposes a $100,000 application fee for foreign workers who will perform specialty occupation roles as part of the government's efforts to prioritise employment for Americans.
"The entry into the United States of aliens as nonimmigrants to perform services in a specialty occupation... is restricted, except for those aliens whose petitions are accompanied or supplemented by a payment of $100,000," the proclamation read.
Employers are expected to retain documentation of payment, which will be verified by the Secretary of State during the petition process, according to the White House.
Employers' alleged visa abuse
The massive application fee comes as Trump pointed out alleged abuses of the H-1B visa programme by employers that make it difficult for American employees to find jobs.
"It has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labour," the proclamation read.
"Some employers, using practices now widely adopted by entire sectors, have abused the H-1B statute and its regulations to artificially suppress wages, resulting in a disadvantageous labour market for American citizens."
The biggest impact of the abuse can be felt in the science, technology, engineering, and maths (STEM) fields, according to the White House.
IT firms, in particular, were singled out for "prominently" manipulating the H-1B system.
According to the proclamation, the share of IT workers in the H-1B programme expanded to over 65% in the last five fiscal years, surging from 32% in FY 2003.
"In addition, some of the most prolific H-1B employers are now consistently IT outsourcing companies," the proclamation said.
"To take advantage of artificially low labour costs incentivised by the programme, companies close their IT divisions, fire their American staff, and outsource IT jobs to lower-paid foreign workers."
The policy has been welcomed by the Federation for American Immigration Reform, which said it provides "much-needed protections for American workers."
"The new fee is significant enough to discourage employers who merely want to hire lower wage foreign workers, but not so prohibitive that it will prevent them from petitioning for workers whose skills are truly needed," FAIR executive director Dale Wilcox said in a statement.
Employers scramble over visa reform
Employers, however, have expressed concerns over the proclamation's impact on organisations.
"We're concerned about the impact on employees, their families, and employers," said the US Chamber of Commerce in a statement.
"We're working with the Administration and our members to understand the full implications and the best path forward."
Tech giants Amazon and Microsoft have also issued advisories urging H-1B visa holders outside the US to immediately return to the country amid initial confusion over the proclamation, Business Insider reported.
Amazon's memo to employees said the proclamation is "structured as a travel restriction," with H-1B visa holders to be barred from entering the US unless their petition has an additional $100,000 payment associated with it.
But US Press Secretary Karoline Leavitt has since offered clarification that the fee only applies to new visas, and not renewals and current visa holders.
"Those who already hold H-1B visas and are currently outside the country right now will not be charged $100,000 to re-enter," Leavitt said on X on Saturday.
"H-1B visa holders can leave and re-enter the country to the same extent as they normally would; whatever ability they have to that is not impacted by yesterday's proclamation."
