US lawmakers are urging President Donald Trump to reconsider a proposed $100,000 fee on new H-1B visa applications. In a letter signed by seven bipartisan members of Congress, including Suhas Subramanyam, the lawmakers argue that this fee will hinder innovation and push skilled workers, particularly from India, to other countries.

The recent guidance from the US Citizenship and Immigration Services (USCIS) states that new H-1B petitions for workers outside the US will require this upfront payment from sponsoring employers, with refunds only available if the application is denied. The lawmakers warn that while large corporations might absorb the cost, smaller start-ups and research-driven companies could be forced to cancel job offers or move projects abroad. They emphasize that this fee will restrict American start-ups from hiring essential talent, ultimately reducing job opportunities for US citizens.

The letter highlights the strategic risk of making it harder for skilled immigrants to stay in the US, as they may return to their home countries and establish competing companies. The lawmakers point out that countries like China and Canada are already enhancing their visa options to attract global talent. They stress that high-skilled immigration has historically been a strength for the US economy, with many successful start-ups founded by immigrants.

Instead of imposing a hefty fee, the lawmakers propose targeted reforms, such as stricter regulations against outsourcing and improved visa portability for H-1B holders. They call for a modernized immigration system that supports both companies and workers.

This issue is particularly significant for India, which receives about 60% of all H-1B visas. The proposed fee could impact thousands of Indian students and professionals seeking employment in the US. If the fee is implemented, it may lead to job offers being rescinded and delays in visa processing. Conversely, if the proposal is modified or blocked, it could keep pathways open for Indian talent, albeit with changes.

Two lawsuits have been filed in US district courts to challenge the $100,000 fee, and the outcomes of these legal actions are still pending. The lawmakers conclude by reiterating the importance of high-skilled immigrants in enhancing the US economy and competitiveness, urging the President to collaborate with Congress for a more effective immigration system.