'Reckless' H1-B fee will have negative impact on IT industry: US lawmakers

US lawmakers and community leaders voiced concern over US President Donald Trump's plan to impose a $100,000 fee on H-1B visa applications, calling the move reckless and unfortunate that will have a huge negative impact on the IT industry.

Trump's $100,000 H-1B visa fee is a reckless attempt to cut America off from high-skilled workers who have long strengthened our workforce, fuelled innovation, and helped build industries that employ millions of Americans, Congressman Raja Krishnamoorthi said.

Krishnamoorthi said many H-1B holders ultimately become citizens and launch businesses that create well-paying jobs in the US. "While other nations race to attract global talent, the United States should strengthen its workforce and modernise our immigration systemnot erect barriers that weaken our economy and security, he said.

Former advisor to president Joe Biden and Asian-American community leader on immigration policy, Ajay Bhutoria, warned of a potential crisis for the US technology sector's competitive edge with Trump's new plan to impose the staggering H1-B fee.

The H-1B programme, a lifeline for innovation that has attracted top talent from around the world, faces unprecedented barriers with this massive jump from the current $2000-$5000 total fee, which will crush small businesses and startups reliant on diverse talent, Bhutoria said.

Bhutoria added that the move will drive away skilled professionals who power Silicon Valley and contribute billions to the US economy.

He said the move may backfire by pushing talent to competitors like Canada or Europe. He called for a balanced reform like exempting startups or prioritising merit-based selection instead of this extreme overhaul.

Khanderao Kand of the Foundation for India and Indian Diaspora Studies said the USD 100,000 fee for H1-Bs is a very unfortunate policy with huge negative impact on businesses particularly software and tech industry as well as US-educated STEM talent who are already struggling due to negative impact of AI and tariffs.