H-1B Fee Proposal Threatens U.S. Employment Landscape, Warns FIIDS
An Indian-American advocacy organization has implored the U.S. government to reconsider its proposed exorbitant fee of $103,265 for cap-subject H-1B petitions.
The Foundation for India and Indian Diaspora Studies (FIIDS) cautions that this measure could inflict significant harm on startups, erode America’s competitive technological advantage, and ultimately shift high-value employment opportunities overseas.
FIIDS specifies that the Department of Homeland Security (DHS) and U.S. Citizenship and Immigration Services (USCIS) should embrace a more balanced framework that safeguards American workers while simultaneously preserving access to global talent.
The organization further articulated its support for a legal and meritocratic immigration system, equitable compensation, and rigorous measures against fraudulent practices.
While FIIDS recognizes the expenses associated with processing applications, averting fraud, and conducting national security evaluations, it warns that imposing such an astronomical fee could render legitimate recruitment financially unfeasible.
Particularly for cash-strapped startups, the proposed charge for hiring a single skilled worker could drastically impair recruitment strategies. Large tech corporations sponsoring numerous employees might face cumulative financial burdens in the hundreds of millions.
“If the expense of employing essential talent in the United States escalates considerably beyond hiring talent abroad, organizations could relocate jobs and investments internationally,” the organization stated.
FIIDS also expressed apprehension regarding the compounded ramifications of the proposed H-1B fee in conjunction with a previously suggested $100,000 fee related to Optional Practical Training (OPT).
Should both fees apply to the pathway from international education through practical training and H-1B employment, the total fiscal burden could soar to $203,265, the organization noted.
This financial strain could severely compromise the OPT framework, which serves as a vital link between American educational institutions and the U.S. labor market.
While we understand that DHS and USCIS require sufficient resources to uphold national security and administer the legal immigration system, a $103,265 H-1B fee poses a serious threat to cash-strapped startups.
Companies employing thousands of H-1B workers could find themselves facing unprecedented costs—potentially nearing a billion dollars, remarked Khanderao Kand, chief of policy and strategy at FIIDS.
“When combined with an anticipated $100,000 OPT charge, yielding a total of $203,265, the forthcoming policy risks rendering the student-to-work transition economically untenable,” he further commented.
FIIDS indicated that this proposal emerges at a time when the influx of international students to the United States has already begun to dwindle.
According to data from the Institute of International Education, new enrollments of international students plummeted by 17 percent in the autumn of 2025.
It also referenced a 2026 projection from NAFSA, predicting a scarcity of up to 111,000 international students—indicating a possible 9.5 percent decrease and an economic deficit of approximately $3.4 billion.
FIIDS pointed out that USCIS currently derives around 96 percent of its operating funds through fees paid by applicants and petitioners.
It has urged Congress to explore alternative funding mechanisms for immigration administration by leveraging existing revenues, appropriations, and reasonable fees instead of placing undue financial pressure on a solitary immigration category.
“We call upon DHS and USCIS to devise a more equitable funding strategy, Congress to secure adequate fiscal support for immigration agencies, and industries to delineate America’s talent requisites clearly,” Kand advised.
“Protecting American workers while preserving the nation’s technological preeminence must proceed in unison.”
The H-1B program facilitates U.S. employers in recruiting foreign professionals for specialized roles, with Indian nationals historically constituting the largest beneficiary group, particularly in technology and engineering sectors.
Optional Practical Training (OPT) enables qualified international students to acquire temporary work experience relevant to their academic disciplines, and those in designated STEM fields may pursue an extension, making the program instrumental in transitioning from U.S. higher education to skilled employment.
Source link: Edexlive.com.
