US to propose hike in H-1B application fee: Labour Secretary

The US plans to hike the H-1B visa application fee to increase funding for the expansion of an apprentice programme, Labour Secretary Alexander Acosta has told American lawmakers, a move that would impose additional financial burden on Indian IT companies.

Testifying before a Congressional committee on the annual budget of the Department of Labor for the fiscal year 2020 beginning October 1, 2019, he said that the Labour Department has also made changes to the H-1B application forms to ensure greater transparency and better protect American workers from employers seeking to misuse the programme.

Acosta, however, did not give details of the proposed increase in the H-1B filing fee and the categories of applicants it would be enforced on.

But given past experience, the Indian IT companies, which account for a large number of H-1B applications, are likely to face the additional financial burden because of this proposed increase in H-1B filing fees.

The H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. The technology companies depend on it to hire tens of thousands of employees each year from countries like India and China.

Arguing that foreigners hurt American workers by competing for jobs and driving down wages, the Trump administration has tightened the noose around the H-1B visa programme.

In his testimony on May 2, Acosta said, "In FY 2020, the Department's budget includes USD 160 million to continue our expansion of apprenticeship programmes, along with a proposal to increase H-1B fee revenues to fund additional apprenticeship activities."