News Summary
President Trump has raised the application fee for new H-1B visas to $100,000, causing concerns among North Carolina businesses and educational institutions that rely on foreign skilled workers. The fee hike is part of a broader effort to reform the H-1B program, which allows companies to employ specialized foreign nationals. Many small firms find it challenging to afford the new fee, and there are worries about potential job losses and offshore shifts as companies adapt to the new costs and regulations.
Charlotte, North Carolina — President Trump has officially increased the application fee for new H-1B visas to $100,000, effective just two days after the proclamation was issued. This significant change has raised concerns among local businesses and educational institutions that rely on foreign high-skilled workers.
Details of the Fee Increase and Its Impact
The new $100,000 fee replaces the previous application fee, which ranged from a few thousand dollars. The increase is part of a broader effort to reform the H-1B visa program, which was established in 1990 to allow companies to employ foreign nationals in specialized roles, typically requiring at least a bachelor’s degree. The program offers visas valid for up to six years, with extensions available for workers applying for permanent residency, provided they have an employer sponsorship.
Reactions from Businesses and Legal Experts
Many small companies in North Carolina have expressed difficulty affording the higher fee. Legal professionals, such as attorneys specializing in immigration, have highlighted that this change may pose a significant barrier for smaller firms seeking to hire foreign professionals. Larger companies, including some of the state’s prominent corporations, have noted that while the fee increase is substantial, it may also lead to companies reconsidering their use of the program and potentially moving more jobs offshore or investing more heavily in domestic workforce development.
The Program’s Background and Demographic Details
The H-1B visa program is crucial for many sectors, especially technology, healthcare, and academia. Over 70% of recent H-1B visa recipients originate from India, predominantly working in the tech industry. Major corporations like Amazon, Microsoft, Meta, Apple, and Google are among the top recipients of these visas. In North Carolina, beneficiaries include companies such as IBM, Bank of America, Cisco, Lowe’s, and institutions like Duke University and NC State University.
Use and Controversies Surrounding the Program
Supporters argue the program helps fill existing skill gaps in the U.S. labor market, enabling companies to access specialized talent. Conversely, critics, including the President, argue the program has been exploited to replace American workers with cheaper foreign labor. An analysis from the Economic Policy Institute in 2023 highlighted that some companies awarded H-1B visas had previously laid off thousands of U.S. workers, fueling concerns about the program’s abuse. The federal cap on H-1B visas remains at 85,000 annually, with North Carolina awarding approximately 7,000 visas to nearly 1,000 employers this year.
Employment and Wage Requirements
Employers seeking H-1B visas must advertise job openings and must pay the prevailing wage according to their industry and region. This aims to ensure that foreign workers are not paid less than American workers. Notable North Carolina employers with significant H-1B approvals include IBM, Bank of America, Cisco, Lowe’s, Truist Bank, Duke University, and IQVIA. However, some companies, like IBM, have announced plans to reduce reliance on high-skilled visa programs and focus more on training U.S. workers for in-demand skills.
Potential Effects of the Fee Increase and Future Considerations
Many companies see the new $100,000 fee as a potential deterrent, leading to concerns about increased costs and companies shifting jobs offshore. Some organizations, including Hitachi Energy, are currently evaluating how the new regulation will impact their H-1B program utilization. The policy allows the Secretary of Homeland Security to grant exemptions to individuals, companies, or entire industries if deemed in the national interest, which could benefit sectors like education that face teacher shortages in North Carolina.
Implications for Education and the Future of the Visa Program
Public educators and school districts in North Carolina underline the importance of obtaining exemptions to prevent severe shortages of teachers. Despite possible exemptions, the new prioritization rules and increased costs may limit the ability of schools and universities to hire foreign teachers and researchers. The White House has indicated that the new fee will be a one-time charge per application and applies only to new visa applicants, not existing visa holders. The fee is expected to expire after one year unless extended for U.S. interests.
Monitoring and Industry Response
Institutions like Duke University, UNC-Chapel Hill, and NC State are closely monitoring the situation, recognizing their dependence on H-1B workers. Industry leaders believe these changes might motivate U.S. companies to increase domestic hiring and streamline offshore processes, though the overall impact remains uncertain as businesses adapt to the new regulations.
Deeper Dive: News & Info About This Topic
HERE Resources
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Additional Resources
- News Observer: H-1B Visa Fee Increase
- Wikipedia: H-1B_Visa
- Charlotte Observer: H-1B Visa Changes
- Google Search: H-1B visa program
- WRAL: Impact of H-1B Visa Fee Hike
- Google Scholar: H-1B visa impact North Carolina
- Hindustan Times: H-1B Visa and Physician Shortage
- Encyclopedia Britannica: Visa
Author: STAFF HERE RALEIGH WRITER
RALEIGH STAFF WRITER The RALEIGH STAFF WRITER represents the experienced team at HERERaleigh.com, your go-to source for actionable local news and information in Raleigh, Wake County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the North Carolina State Fair, Raleigh Arts Festival, and the Hopscotch Music Festival. Our coverage extends to key organizations like the Greater Raleigh Chamber of Commerce and Visit Raleigh, plus leading businesses in technology and education that power the local economy such as Red Hat and NC State University. As part of the broader HERE network, including HEREAsheville.com, HERECharlotte.com, HEREGreensboro.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.
