The $100,000 H-1B visa fee has hampered small startups, while large tech companies have found a new way forward. These changes have made it easier for foreign students to find jobs.
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In September of last year, US President Donald Trump increased the H-1B visa fee to $100,000. This decision affected many countries around the world, including India. This decision made it significantly more expensive for American companies to hire foreign workers. Trump’s decision was met with worldwide opposition.
The new visa fees and changes in regulations have given a new twist to the dream of working in America. In particular, the increased fees and new preferential policies related to H-1B visas are impacting different companies. While small startups are under pressure, large tech companies are changing their methods.
These sectors require foreign experts with specialized technical skills. Previously, startups used to hire such employees through H-1B visas, but now, due to the high fees, they are avoiding this route. Many companies are choosing to train local employees or limit their workload.
New Strategy of Big Tech Companies
On the other hand, major tech companies like Amazon, Microsoft, and Google, while having the resources, are also avoiding relying directly on H-1B visas. According to reports, these companies have begun adopting new recruitment methods. They now prioritize employees who are already in the United States or can work under alternative work permits. This saves them hefty fees and prevents disruptions to their work. Large companies are also deploying their talent in different countries through long-term planning.
New Changes to H-1B Visas
Each year, 85,000 new H-1B visas are issued in the United States. Of these, 20,000 are reserved for foreign students who have earned a master’s degree or higher from an American university. Previously, this visa system was issued through a lottery system, meaning who received it depended on luck.
Now, the government has changed this system as well. Under the new system, priority will be given to those with higher salaries. This will directly benefit larger companies, as they typically pay higher salaries. This could make it easier for high-paid candidates to obtain visas.
What has changed with the H-1B visa?
The United States issues 85,000 new H-1B visas each year. Of these, 20,000 visas are reserved for foreign students who have completed a master’s degree or higher from an American university. Previously, this visa was awarded through a lottery system, meaning that the decision to receive one was based on luck.
The government has now changed the rules. Under the new system, higher-paid candidates will be prioritized. This means that candidates from companies with higher salary structures may be more likely to be selected.
Experts believe that if a large company sponsors an H-1B visa for an employee, they are more likely to receive it. The new policy prioritizes higher-paid employees.
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