Tag: #Trump

  • Lottery Out. Wages Over Luck in New Proposal: Trump’s New H-1B Rule Explained

    On September 23, 2025, the Trump administration proposed an alternative method for selecting H-1B visa applications. This is a major shift as the decades-old system is put to a halt. Since 2007, the US government has been using a lottery system when more people applied than the annual cap of 85,000 visas. Instead, a wage system will be implemented to prioritise the highest-paying jobs first. This has come to light after the $100,000 H1-B Visa shock. There already exists several confusions with the visa fees, and another is here. So, how will this impact companies and the new applicants? Learn more.

    How Would the New System Work?

    • In case more people apply (than the actual 85,000 number):
    • Applications would be categorised and ranked by the wages offered by the companies.
    • Higher-paying jobs will get picked.
    • The lower-paying jobs stand no chance.
    • The better the pay, the higher the chances of getting selected.
    Offical Proclaimation on U.S. Citizenship and Immigration Services Website
    Offical Proclaimation on U.S. Citizenship and Immigration Services Website

    Why Is The Wage System Proposed?

    The administration says:

    • These strict policies are brought into place to protect the American workers from “unfair wage competition.”
    • The policy will prevent companies from hiring foreign workers at low wages.
    • And force them to offer more competitive salaries if they want foreign workers.

    The $100,000 Fee

    • The new suggestion for the lottery system has come to light after Trump announced the $100,000 annual fee for each H-1B visa (On September 19, 2025).
    • The panic it caused was massive; many tech companies called their H-1B workers back to the US and asked them not to travel.
    • There exists several confusions and fears around the topic (Google employees protested in New York), even after the White House, the fee applies to the new visas.
    • However, nothing is final yet. These rules normally take months or years to finalise.
    • If everything goes accordingly to plan, the suggested system will replace the 2026 lottery (before March 2026).

    The Money Side (Official Estimates):

    • Fiscal Year 2026 (starting October 1, 2025): The wages offered to H-1B workers will rise by $502 million.
    • Fiscal Year 2027: Wages are expected to rise by $1 billion.
    • Fiscal Year 2028: Wages are expected to rise by $1.5 billion.
    • Fiscal Years 2029–2035: Wages are expected to total $2 billion.
    • According to White House, the US government is expecting the tech giants to pay a lot more for foreign workers.

    Who Loses Out?

    • The small businesses are going to take a big hit.
    • In the US, around 5,200 small companies normally hire H-1B workers. With new policies in place and $100,000 to pay per head, these companies will suffer a significant economic impact.
    • Reason: These companies are small and can’t afford high salaries. 

    What Happens Next?

    • This proposal comes from the US Citizenship and Immigration Services (USCIS).
    • After the proposal is out, the general public will have 30 days to comment, starting on Wednesday, September 24, 2025.
    • Once the opinion of the public is gathered, the government will then decide whether to finalise the rule, change it, or drop it.
  • From Code to Protest: Google Workers vs Trump’s H-1B Order

    A backlash has begun as Google employees protest against Trump’s new $100,000 fee on H-1B visas. A group of unionized Google workers outside the New York office voiced concerns about the 6,600% increase in H-1B visas. The policy was imposed as a security measure, but its rules only proliferated more confusion. The confusion is leading to more fear among the H1-B visa holders. And so the employees are coming together to fight. Will Google favor the employees? Will the government consider the workers’ anger? Learn more. 

    Why Did the Workers Protest?

    Especially the tech industry in the US is hit hard with panic as the fee grew by a whopping 6,600%. Many fear losing their jobs, and companies are forced to pay the fee themselves. 

    That’s why the workers are protesting:

    • The employees want Google to stand with its employees and speak against the policy.
    • The employees are demanding special support for immigrant Google employees, such as extended severance pay, in the event that H-1B workers are laid off.
    • These matters demand attention because H-1B holders have only a short time to find another job. In case they don’t find one, they’ll end up losing their legal status in the US.

    What Did Google Do Internally?

    Immediately after Trump’s order, Google’s immigration law firm (BAL) sent an urgent internal memo. The memo informed that H-1B employees traveling abroad should return immediately. The memo also warned the employees traveling abroad of the difficulties of entering the US.

    What Did the White House Clarify Later?

    • The White House clarified that the new $100,000 fee policy will only apply to new H-1B applications starting in March 2026.
    • Therefore, current H-1B visa holders (and those renewing their visas) don’t need to worry, as they won’t be affected.
    • The confirmation came from the White House so late that panic had already taken hold among the employees, and they were taking to the streets to protest.
    • Even now, there’s no clear understanding of how the fees will be collected and whether they will be collected annually or each time the US is entered.

    How Big Is the Impact?

    Notably, Google has applied for 5,500 H-1B visas in 2024, so the immediate effect is, of course, on the existing employees. However, the new policy will have a severe impact on Google in the future, especially for these applications. 

    Reactions From the Tech World

    • The policy made headlines on the news, and many have gotten off the planes (happened at San Francisco airport), worrying if they would be allowed back.
    • Many tech giants (like Amazon, Microsoft, Google, and Tesla) have sent internal messages to their employees asking them not to travel and to return on immediate notice. 

    Voices From the Protest:

    Parul Koul, president of the Alphabet Workers Union, said, “Google is one of the most powerful companies in the world, but they haven’t spoken up for their own workers.”

    Tim Traversy, a Google software engineer, asked, “Will they stand with the immigrant workers who helped build this company?”

    Where Things Stand?

    Current visa holders are safe, but the future ones aren’t. New applicants have to pay $100,000 starting from March 2026. Google is silent at the moment, but its employees want the company to speak up. But the real question is, with Trump standing on the other side of the policy, will Google still speak up for its employees? 

  • Trump’s the $100,000 H-1B Shock: Affected People, Exemptions, and Confusions

    The US government has recently made it more difficult to enter the country, especially for those seeking employment in the US. Indian tech workers and students are now under constant concern. The Trump administration announced a $100,000 one-time fee for new H-1B visa applications as part of their immigration policy (effective September 19, 2025). The fee is a whopping $100,000, and so is the fear. And so is also confusion about the policy since it took effect at midnight on September 21, 2025. Are those already working in the US at risk? Should prospective applicants be worried, too? Learn more. 

    Trump annoucing the new $100,000 H-1B policy
    Trump annoucing the new $100,000 H-1B policy

    Who Has to Pay the $100,000?

    The reasoning given by the Trump administration for the policy change: the H-1B system was being “abused” and was a “national security threat.” Here’s the breakdown: 

    • New H-1B applicants outside the US should pay the $100,000 (which is INR 88,29,047.57) fee if they want to enter the US. This was $2,000 to $5,000 (INR 1,76,579.20 – INR 441448.00) before this policy came into effect. ✅
    • Current H-1B visa holders in the US don’t have to pay the fee. ❌
    • H-1B holders extending or transferring visas inside the US are also exempted from the policy. ❌
    • F-1 students converting their visas to H-1B inside the US are also exempted. ❌
    • F-1 students outside the US applying for H-1B (through the upcoming February lottery or later) will have to pay the fee. ✅
    • Also, the government will waive the fee for foreigners working in the “national interest” job roles, for instance, healthcare workers. ❌
    • But so far, there is no clear exemption list that has been published officially.

    Travel Gray Area

    • Let’s say you have a valid H-1B visa and travel abroad. Do you have to pay $100,000 to re-enter the US?
    • No, says the White House. However, the lawyers say that the wording of the White House is confusing on the matter.
    • While all this is happening, big companies like Amazon and Microsoft have asked their employees not to travel until there’s clarity.

    Is It One-Time or Annual?

    • The real confusion is here because the early drafts of the policy say annually. On the other hand, the proclamations state that the fee applies each time the person enters the US.
    • Example: You have come home (India) for Diwali (or vacations), and while re-entering the country, you’ll be entitled to pay $100,000 again.
    • Lawyers on this matter say that no one knows how these fees will be collected. Will it be collected by the state Department, at airports, or through employers? No clarity. 

    How to Pay the Fee?

    • According to the law, the employer is entitled to pay the H-1B petition fees, not the worker themselves.
    • It is clear that companies will not pay out of their own pockets; instead, they will indirectly adjust the amount by reducing employees’ salaries, hiring, or sponsorships.

    Why the Panic?

    • The news certainly caused panic with this confusion. Even now, several with existing H-1B visas think they’ll be asked to pay.
    • About 70% of the H-1B Visa holders are Indian, working in the tech sector, and they panicked the most.
    • The news broke with different versions, so the companies asked their employees to stay in the US before September 21, 2025. So, they can protect themselves from the new rule.

    Impact on Salaries

    • The fee of $100,000 is INR 88,29,047.57, which is huge for many Indians staying in the US. It is way above the median annual salary of a fresh H-1B worker.
    • If we do the math, it’s over 80% of the average annual salary of all H-1B workers.
    • Many companies hire foreigners (especially Indians) for their skills and productivity at work. But policies like these make the visa more intimidating for both workers and companies. 

    Long-Term Effects

    The long-term effects are seemingly negative for the US because:

    • The $100,000 is an unaffordable amount for Indians, so that the US will suffer from a loss of skilled STEM workers, especially from India.
    • Alternative visas like L-1, O-1 may see a spike, but the rules aren’t flexible for many, so they aren’t sustainable, either.
    • Current OPT (Optional Practical Training) students will see less competition in the short term. However, there are fewer opportunities overall.
    • The Indian tech talent will move to other countries like Canada, the UK, Australia, and more (boosting their economy), which is a minus for the US.

    Right now, several Immigration lawyers are preparing lawsuits. This policy is widely compared to the 2017 Travel Ban that was announced as a “security measure,” and it was fought in court.

    Important detail that lawyers are underlining:

    • A presidential proclamation is not a law.
    • But a presidential proclamation does carry authority over federal agencies until the intervention and blockage from the courts. This is what happened in the 2017 Travel Ban.
    • In the US, only Congress has the authority to change the H-1B law. Apparently, the policy is framed on the basis of a security issue, so the President has temporary authority only. 

    General H1B New Policy FAQs

    Q1: Do all H-1B holders need to pay?

    No, only new applicants outside the US after September 21, 2025, will have to pay $100,000 to enter the US.

    Q2: Is it annual?

    Not officially. It’s “per entry,” but needs clarification from the White House.

    Q3: What about renewals/extensions?

    No fee.

    Q4: Who pays?

    The employer is sponsoring.

    Q5: Any exemptions?

    It is unclear, but the roles in the “national interest”, like healthcare (like doctors, nurses), may be exempted.