Trump’s $100,000 fee for H-1Bs, six months later

Last fall, President Donald Trump’s executive order raising fees for H-1B visas to $100,000 — like many of his immigration policies — led to near-instant chaos. Thousands of workers who traveled abroad to renew their visas They ended up stuck outside. Details about who would be affected did not emerge until after the event. Six months later, the turmoil caused by the initial announcement has largely subsided. The H-1B registration season for the upcoming fiscal year has just begun. With H-1B applications open until March 19, it’s unclear what impact, if any, the new rules will have on employment, immigration and the workforce, but experts warn that the impacts will reverberate far beyond the tech industry.

Trump’s transition team is split between an anti-immigrant bloc led by longtime adviser Stephen Miller and the president’s powerful new tech allies, including Elon Musk and Vivek Ramaswamy. These factions have divided over the issue of H-1B visas, which allow skilled foreign workers to come to the United States to fill specific jobs. The visa category is commonly associated with big tech companies, and for good reason: Amazon, Meta, and Microsoft are the three largest employers of H-1B workers. Expel musk and Dissolving his government efficiency department This was the death knell for the tech-MAGA alliance, paving the way for increased H-1B fees.

But while the H-1B may bring to mind lucrative software engineering jobs, the policy change affected other industries more radically. In fact, companies like Amazon can easily absorb the cost of increased fees and have come up with workarounds to pay them. Instead, the increase in H-1B fees disproportionately affects rural schools and hospitals that are already struggling with labor shortages. Simply put, Trump’s attempt to punish Big Tech is actually hurting underfunded schools and hospitals, many of them in deep rural areas that supported his candidacy.

There are two main changes: a fee increase, which has generated the most interest, and a new prioritization system that favors higher-income applicants. Because there are more petitioners than open slots, H-1B visas are issued by lottery. But now, new applications will be weighted by income, and those in higher-paying jobs will have better chances of obtaining a visa. Applicants will now be divided into four pay levels: Level 1 applicants will be entered into the lottery once, while Level 4 applicants will receive four entries. Under this system, a high-paid tech worker would likely be prioritized over a teacher who earns less money, immigration lawyers say. US Citizenship and Immigration Services, the federal agency that handles H-1B and other visa applications, did not respond. EdgeRequest for comment.

Margaret Stock, an immigration attorney in Anchorage, says the tuition increases are already affecting public schools in her state. “We have a significant labor shortage in Alaska,” she said, and that shortage extends to the school system. Stock represents several school districts that have hired foreign teachers on H-1B visas. Teachers are hired under union contracts that determine their salaries, Stock said.

This is partly because teachers are difficult to obtain, as is the case in Alaska One of the highest paying countries For teachers. Some counties even offer signing bonuses and relocation allowances. But these resources can only go so far. “The state doesn’t have the money to pay $100,000 per teacher for an H-1B worker,” Stock said. “It’s going to be millions of dollars that they’re going to pay the federal government for teachers.”

Alaska has approximately 600 international teachers, 341 of whom hold H-1B visas. according to Alaska Council of School Administrators. This is a small percentage of the total H-1B workforce – per BioThere are 400,000 applications approved in 2024, most of them renewals — but they’re making a big difference in Alaska, the most populous U.S. state. Most international teachers in Alaska come from the Philippines, Ghana, and India – countries with large English-speaking populations. Last year, before the fee increase, school districts in Nome, Bering Strait and Kenai Peninsula were on par Organized a recruitment trip To the Philippines.

Stock said the fee increase would not only affect potential immigrants.

“Alaska is losing population, and one of the reasons we’re losing population is because people don’t want to live here when they can’t put their kids in a good school,” she said. “If the class sizes are too large, or there are no teachers, or there are no activities, or there is no health care, people won’t want to live here. It’s not just an H-1B issue. There are impacts on the entire economy.”

State and federal officials are hoping to get waivers for the fee increases. After announcing the fee increase, the administration clarified that DHS would grant exceptions in “extremely rare” circumstances where hiring foreign workers would be “in the national interest,” and only when American workers are not available to fill those roles. Waivers will only be granted in cases where the employer’s failure to pay “would materially undermine the interests of the United States.”

The only way to apply for exemptions is via email, and Stock has not heard of any being granted.

The higher fees also affect Alaska Native Corporations, which are 13 regional corporations across the state and whose shareholders are Alaska Natives. These companies often hire H-1B workers for specialized roles, Stock said. “I know an H-1B worker who works in hazardous waste management related to military bases in Alaska,” Stock said. “There are all kinds of workers: engineers, health care workers, doctors, university and public school teachers. In Alaska, most H-1B workers are not tech workers.”

Alaska isn’t the only state facing a severe labor shortage. Rural clinics across the country increasingly rely on migrant workers. Since the fee change was announced, some positions have remained completely vacant. Last September, the National Rural Health Association and the National Association of Rural Health Clinics asked the Trump administration to implement a “blanket exception for health care providers.” They didn’t hear a response. (The National Rural Health Association did not respond EdgeComment request.)

Global Nurse Force, a nurse recruitment company, He filed a lawsuit against the Trump administration Due to the increase in fees last October. It is one of three federal lawsuits filed since the change took effect.

At a February hearing in the Global Nurse Force case, government lawyers said About 70 employers have paid the fees yet. The administration claims that the low number of applicants proves that the increase “is not a tax because it does not increase revenue.” It could also indicate that employers have found ways around paying the fee.

Fariba Faiz, a San Francisco-based immigration attorney, said the fees changed companies’ hiring practices — but did not stop them from hiring immigrant workers. “What we are seeing in practice is a shift in employer strategy rather than a complete abandonment of the H-1B program,” Fayez said.

The $100,000 fee applies only to first-time petitioners applying from outside the United States. For example, someone in the United States on a student visa applying for an H-1B visa will not be subject to the increased fees. This workaround means some companies are “prioritizing cases that can be brought as changes of status in the United States,” while other companies are hiring foreign workers remotely rather than bringing them into the country, Fayez said.

“The practical effect is that companies are adjusting hiring models to avoid fees rather than eliminating the need for highly skilled workers,” Fayez said. “In many cases, talent is still being hired, but the job simply no longer exists in the United States.”

Even with these solutions, the Trump administration’s broader immigration policies have made some companies more reluctant to hire immigrant workers. Some employers do not understand the new regulations.

“The questions you’ve answered about the $100,000 tax, so to speak, are endless,” said Matt Maiona, a Boston-based immigration attorney. Maiona said he often talks to clients who don’t realize there are ways around the fees. “But it’s not necessarily the $100,000 that makes companies not want to hire; it’s the environment, the economy, and the uncertainty of how their employees will or won’t get into the country even if they’re doing everything right.”

Aside from pursuing so-called “criminal aliens,” the Trump administration is also cracking down on almost all forms of legal immigration. Management recently Reducing the duration of work permits for asylum seekers To 18 months. Before the change, work permits for asylum seekers lasted for five years. And management too Announced last August It reviews the records of all visa holders — including H-1B visa holders — for any violations that might make them vulnerable to deportation. Since December, H-1B applicants have also been served Subject to enhanced screeningand petitioners who worked as content moderators may be denied requests.

“$100,000 is something you can get an answer for,” Maiona said. “You can call an immigration lawyer and we’ll say, ‘We don’t really think you have anything to worry about.’ “It’s like, ‘OK, you’re doing well.’ But the other things we can’t really promise. That’s really what’s driving a lot of this. It’s that fear.”