US President Trump has changed the H-1B visa rules. Under the new rules, the visa fee has been increased to up to $100,000 annually. This step was taken to prevent the layoff of American employees due to foreign workers and to ensure companies get more skilled workers.
H-1B visa: The Trump administration has implemented new rules for the H-1B visa in the US, under which the visa fee has been increased to up to $100,000 annually. This step was taken because many American companies laid off more than 40,000 American employees under the guise of hiring H-1B workers. Trump states that the new rules will ensure companies receive highly-skilled workers and protect the employment of American workers.
Impact of the America First Policy
Donald Trump has been emphasizing the 'America First' policy since his election campaign. He believes that H-1B visas allow foreign workers to take jobs from American citizens. For this reason, the Trump administration has tightened immigration rules and increased fees. According to the White House, the H-1B visa program discourages American students from pursuing STEM (Science Technology Engineering Mathematics) careers.
Layoffs of American Employees in Companies
The White House reported that several American companies leveraged the H-1B visa to lay off their American technical staff. For instance, one company received 5,189 H-1B approvals but subsequently dismissed 16,000 American employees. Similarly, another company laid off 2,400 American employees in Oregon despite receiving 1,698 H-1B approvals. A third company cut 27,000 American jobs despite having 25,075 H-1B approvals. Thus, thousands of American jobs in the US have been affected due to the H-1B visa.
The New Rule and Its Rationale
The Trump administration announced new rules in the Oval Office on Friday. Under the new regulations, it will be ensured that workers brought in by companies after H-1B visa approval are more skilled and proficient. Trump stated that companies will now receive excellent workers, and American employees' jobs will be protected. This change aims to prevent the misuse of the H-1B program and also curtail salary reductions.
Impact of Increased Costs on Companies
The purpose of increasing H-1B visa fees is to impose additional costs on companies. Now, companies will have to pay more to hire foreign employees. This will ensure that only highly qualified and skilled workers get the opportunity to work in the US. This step by the Trump administration aims to secure American employees' protection and employment.
Impact on American Employees and the Job Market
This decision could lead to changes in the US job market. A reduction in the number of foreign employees will increase employment opportunities for American workers. Furthermore, due to the higher fees, the selection for H-1B visas may be limited to only highly skilled employees. This could result in a decrease in the number of foreign technology professionals working in the US.
