US employers seeking to hire skilled foreign workers can use the federal government's H-1B visa programme for a fee, allowing tech and other professionals from abroad to work in the United States for a few years. US President Donald Trump, who has pursued a broad immigration crackdown since taking office last year, has lambasted the programme and wants to permanently raise the fee from between $2,000 and $5,000 to more than $100,000.
Despite criticism that some companies use the visas to hire lower-paid foreign workers instead of Americans, business groups and companies say they help recruit highly skilled professionals and address a lack of qualified US workers in some industries. The visas, established by Congress in 1990, are especially critical for tech companies seeking to recruit from India and China. Consultancy companies such as Deloitte, PwC and Ernst & Young as well as outsourcing giants such as Tata Consultancy Services, Infosys, HCL Tech and LTIMindtree are also top H-1B sponsors.
Here are more details about the programme and what changes are happening under the Trump administration: Trump last year dramatically raised the cost of H-1B visas to $100,000, prompting several lawsuits. While his initial fee increase is set to expire in September, the Department of Homeland Security this week proposed raising it to a permanent $103,265. A group representing India's technology industry has said it is engaging with US stakeholders over the proposed increase, and urged the administration to consider the benefits it offers companies seeking to temporarily address worker shortages.
Tesla, Amazon, OpenAI and other companies have all faced questions over their H-1B visa use, especially amid US layoffs and a tighter job market facing American workers. A Boston-based appeals court is reviewing a June decision by a federal judge who ruled that the fee was illegal and blocked the Trump administration from collecting it. Another court is also considering whether a judge properly rejected a challenge to the fee by the US Chamber of Commerce, the largest US business lobbying group.
Democratic-led states as well as a coalition of unions and employers have also filed lawsuits. The pending legal cases could be amended to challenge this week's proposed rule after it is finalised. Changes to how potential visa holders are scrutinised and processed have impacted companies' hiring and expansion plans, with some top H-1B users, such as Google, moving to increase operations in India. Trump's administration in December said it would increase its vetting of H-1B applicants with a particular focus on what it deemed censorship and free speech, offering 65,000 visas annually with another 20,000 for workers with advanced degrees.