Yearly Cost to US Tech Firms
US technology firms might have to pay $14 billion annually for H-1B visas. The new fee for the visa stands at $100,000 per case. The hike will be done only for fresh applications filed in the lottery conducted in February.
Purpose of the Decision
The Trump government made the increase to compel businesses to employ more American staff. The US Citizenship and Immigration Services had issued 1,41,000 H-1B visas last year. If the same number were made under the new fee, the cost would be $14 billion (Rs 1.23 lakh crore).
Impact on Startups
Gariton, founder of startup incubator Y Combinator, stated that the policy injures startups. He noted that the alteration might favor tech centers in other nations.
Legal Obstacles Anticipated
A lawyer noted that Trump's move might encounter legal challenges. Critics contend the order crosses the powers of the presidency. Courts might block the announcement.
Other Proposed Alterations
The government also associated the move with broader reforms in the visa regime. Recommendations are to increase the minimum salary threshold and move visa grants away from a lottery towards a salary-based system. Republican lawmakers prefer the salary-based method.
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