Introduction to the H-1B Visa Program
The H-1B visa program, introduced in 1990, is primarily used to offer highly qualified foreign workers to the technology industry. The program has a limited number of visas available each year, with a current limit of 65,000 and an additional 20,000 for non-residents who complete a master’s degree or higher from a US institution. People in "computer-related" professions currently make up about two thirds of visa owners.
Immediate Effects on the US Economy
The proposal by US President Donald Trump to introduce a $100,000 application fee for the H-1B visa has caused "extreme chaos" and many aspects, including its legality, are uncertain. Economists believe that the potential loss of talent would be an "enormous economic loss" for the US economy. Jeremy Robbins, Executive Director of the American Immigration Council, expects that large multinational companies will immediately move their operations to other locations when the plan comes into force.
Who Will Be the Most Affected?
Universities and non-profit organizations, which currently make up more than a third of H-1B visa holders, would be significantly affected by the new fee. They would not be able to pay such high fees for the employment of necessary workers, which would "set a massive incident to the ability of a university to hire foreign faculties in order to attract the best and smartest researchers". Startups and smaller technology companies would also be adversely affected, with some critics saying that the decision "kneecaps" their ability to hire the necessary people.
Legitimacy of Trump’s Claims
The White House claims that the H-1B system is misused and US workers are disadvantaged. However, experts argue that the system is designed to attract talent and not to find cheaper workers. Studies consistently prove that the visa system "creates jobs, promotes innovation, and dramatically contributes to gross domestic product". American technology workers are not disadvantaged by the program, with unemployment being "dramatically low" among highly qualified US technology workers.
Long-Term Consequences
Experts believe that the US innovation and economic growth will be damaged in the long term if the Trump administration goes ahead with its application fee of $100,000. The H-1B visa program has been shown to have positive effects on the local economy, with H-1B workers causing more patenting, the formation of tax-paying startup companies, and dynamizing the local economy. The US is currently a place where more talented people around the world want to come than any other, and putting this at risk would be a "very risky suggestion".
