H-1B Visa Fee Hike May Cut Work Permits by 5,500 Monthly

JPMorgan Chase & Co. has issued a warning that the newly announced $100,000 fee for H-1B visa applications by the White House could lead to a substantial decrease in the number of immigrant work permits issued each month. According to an analysis by JPMorgan Chase & Co. economists, this new fee could result in a reduction of up to 5,500 work permits per month.

The economists highlighted that the applicants most likely to be affected by this new fee are those already facing financial constraints. If the fee is fully implemented, the number of immigrant work permits issued each month could decrease by up to 5,500, unless immigrants can find alternative means of funding their applications.

The new fee, which is approximately 60 times higher than the current fee, is set to take effect on September 21. This move has raised concerns among tech companies and immigrants, particularly those from India, who heavily rely on the H-1B visa program. The increased fee could make it more challenging for these companies and individuals to obtain the necessary visas to work in the United States.

The impact of the new fee on the tech industry and the broader economy remains uncertain. However, it is clear that this move will have significant implications for companies and individuals who depend on the H-1B visa program. The new fee could also have broader economic implications, as it could lead to a reduction in the number of high-skilled workers entering the United States. This, in turn, could impact economic growth and innovation.

In the 2024 fiscal year, computer-related jobs accounted for nearly two-thirds of all H-1B approvals, with approximately half of the approved applications involving positions in professional, scientific, and technical services. About 71% of visa recipients were from India. In the previous fiscal year, approximately 65,000 of the 141,000 new H-1B employment applications were processed overseas. These applicants are the most likely to be affected by the new fee.

The economists noted that if all overseas applications were to stop, the number of immigrant work permits issued each month could decrease by up to 5,500, unless immigrants can find alternative visa categories to secure employment. This analysis underscores the potential impact of the new fee on the tech industry and the broader economy, highlighting the need for alternative solutions to support high-skilled immigration.