Trump 2.0 to threaten H-1B plans of tech companies
The possibility of a second Donald Trump administration has raised concerns over the revival of the anti-immigration agenda in the US, even as the tech industry is already ringing alarm bells about the H-1B visa fee hikes. The unprecedented fee hikes are likely to be implemented from 2025.
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Next year, the H-1B visa registration fees are to increase 2,050% from $10 to $215, while the application fee will increase 70% from $460 to $780. Initial registrations for the fiscal 2025 H-1B cap began March 6 and will continue till March 22.
“If we are going to see a Trump 2.0 administration, then yes, we are going to see a negative impact on immigration policies, if we go by the record of the Trump 1.0 administration,” Poorvi Chothani, founder and managing partner of LawQuest, a global immigration law firm, told ET.
Trump is now the Republican challenger to Democrat Joe Biden in the presidential race, after rival Nikki Haley on Wednesday suspended her campaign.
“There’s a lot at stake in this election for immigration, definitely,” Chothani said. “Both the parties do want to stop illegal immigration. The Democrats are more open to immigration, legitimate immigration for family reunion and business, while the Trump administration is less likely to be pro-immigration, even for family reunification and business.”
A February 2024 report by the National Foundation for American Policy (NFAP) said restrictive policies during the first Trump administration saw H-1B denial rates rise to 24% in FY 2018. After a legal settlement in 2020, they returned to below pre-Trump levels to 2.2% in FY 2022.
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Meanwhile, the ‘unprecedented’ jump in fees will increase the cost of bringing in talent at a time when demand is high, Shivendra Singh, vice president and head-global trade development at apex IT industry body Nasscom, told ET.“Demand is not being met by local employment… So, making this more difficult by raising the fee, at a time when the demand-supply gap is high, and to such an unprecedented level, is something which is difficult to comprehend.”
He added that the inclusion of a $600 asylum fee-within-fee for H-1B approvals for initial petition makes little sense.
Immigration lawyer Cyrus Mehta, founder and managing partner, Cyrus D. Mehta & Partners PLLC, said the hikes are significant, but since many of these employees provide valuable skills and expertise, he believes that employers will continue to pay the increased fees.
Nasscom also made a submission to the US Citizenship and Immigration Services (USCIS), highlighting some of the industry concerns around the recent proposal on H-1B modernisation rule.
“While we appreciate some of the changes that will streamline the H-1B process, there are also changes contained in this rule that we believe may have dire consequences for the H-1B programme, and specifically for Nasscom member companies and the important US companies to which Nasscom members provide their essential services,” Nasscom said.
The provisions will narrow the definition of ‘specialty occupation’ by requiring degrees to align precisely with job requirements, which is difficult in the rapidly evolving tech landscape, where companies tend to hire people with diverse backgrounds, Singh said.
It also defined employees ‘staffed’ at third-party sites as part of their organisational hierarchy. Nasscom submitted that “this could lead to increased requests for evidence and denials, creating delays and hindering recruitment efforts”.
The possibility of a second Donald Trump administration has raised concerns over the revival of the anti-immigration agenda in the US, even as the tech industry is already ringing alarm bells about the H-1B visa fee hikes. The unprecedented fee hikes are likely to be implemented from 2025.
![]()
Next year, the H-1B visa registration fees are to increase 2,050% from $10 to $215, while the application fee will increase 70% from $460 to $780. Initial registrations for the fiscal 2025 H-1B cap began March 6 and will continue till March 22.
“If we are going to see a Trump 2.0 administration, then yes, we are going to see a negative impact on immigration policies, if we go by the record of the Trump 1.0 administration,” Poorvi Chothani, founder and managing partner of LawQuest, a global immigration law firm, told ET.
Trump is now the Republican challenger to Democrat Joe Biden in the presidential race, after rival Nikki Haley on Wednesday suspended her campaign.
“There’s a lot at stake in this election for immigration, definitely,” Chothani said. “Both the parties do want to stop illegal immigration. The Democrats are more open to immigration, legitimate immigration for family reunion and business, while the Trump administration is less likely to be pro-immigration, even for family reunification and business.”
A February 2024 report by the National Foundation for American Policy (NFAP) said restrictive policies during the first Trump administration saw H-1B denial rates rise to 24% in FY 2018. After a legal settlement in 2020, they returned to below pre-Trump levels to 2.2% in FY 2022.
Discover the stories of your interest
Meanwhile, the ‘unprecedented’ jump in fees will increase the cost of bringing in talent at a time when demand is high, Shivendra Singh, vice president and head-global trade development at apex IT industry body Nasscom, told ET.“Demand is not being met by local employment… So, making this more difficult by raising the fee, at a time when the demand-supply gap is high, and to such an unprecedented level, is something which is difficult to comprehend.”
He added that the inclusion of a $600 asylum fee-within-fee for H-1B approvals for initial petition makes little sense.
Immigration lawyer Cyrus Mehta, founder and managing partner, Cyrus D. Mehta & Partners PLLC, said the hikes are significant, but since many of these employees provide valuable skills and expertise, he believes that employers will continue to pay the increased fees.
Nasscom also made a submission to the US Citizenship and Immigration Services (USCIS), highlighting some of the industry concerns around the recent proposal on H-1B modernisation rule.
“While we appreciate some of the changes that will streamline the H-1B process, there are also changes contained in this rule that we believe may have dire consequences for the H-1B programme, and specifically for Nasscom member companies and the important US companies to which Nasscom members provide their essential services,” Nasscom said.
The provisions will narrow the definition of ‘specialty occupation’ by requiring degrees to align precisely with job requirements, which is difficult in the rapidly evolving tech landscape, where companies tend to hire people with diverse backgrounds, Singh said.
It also defined employees ‘staffed’ at third-party sites as part of their organisational hierarchy. Nasscom submitted that “this could lead to increased requests for evidence and denials, creating delays and hindering recruitment efforts”.
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