Impact of $100,000 H-1B Visa Fee on the Banking Industry
President Trump’s stricter immigration controls are beginning to impact skilled worker visas. These visas, known as H-1B visas, are frequently used by U.S. banks and payment companies to bring in overseas talent, particularly in the technology sector. The latest development involves the introduction of a petition fee for these visas. This move, according to the White House, is designed to curb abuse within the program. However, payment experts suggest it could increase the cost of payment and fintech innovation, potentially resulting in these costs being passed onto consumers.
“The cost of employing skilled foreign workers under the H-1B visa program is going up, therefore, everything else being equal, demand for them will go down,” Eric Grover, principal at Intrepid Ventures, told American Banker. The implication is that banks and payment companies will face higher costs for hiring H-1B visa workers and American workers alike. Grover suggests that this $100,000 fee is inflationary and could lead to increased costs for financial services and payments for consumers and businesses.
Details of the New H-1B Proclamation
The Trump administration’s new H-1B decree imposes a $100,000 fee for new H-1B petitions submitted after Sept. 21, including the 2026 lottery. This is a one-time fee and does not restrict travel for H-1B visa holders. However, it has raised concerns among companies such as Google and Amazon who have issued advisories against travel outside the U.S. or urging their workers to return due to potential reentry difficulties. Goldman Sachs has also urged caution for its H-1B workers when it comes to international travel.
U.S. companies typically file H-1B applications on behalf of workers. Employers must guarantee they will pay either the wage for similar jobs for U.S. workers at the company, or the prevailing wage for similar jobs in the local area – whichever is higher. Despite these wage rules, H-1B workers tend to earn around 10% less than U.S. workers in comparable roles, according to data from Deloitte cited by the Journal of Business Ethics.
H-1B Visas in the Banking and Payment Industries
According to the U.S. Citizenship and Immigration Services employer hub, several corporate units associated with Goldman Sachs were among the firms with the most approved beneficiaries in the three quarters ending June 30. Other financial institutions with high numbers of approved beneficiaries include Citibank NA, American Express Travel Related Services, PayPal, and U.S. Bank.
However, the fee increase could potentially impact the competitiveness of American companies by limiting their ability to hire high-skilled employees from around the world. As a result, these employees may opt to stay in their home countries and establish companies there to compete with American firms. Furthermore, the fee increase could particularly hurt the startup sector, which may struggle to afford the fee. This could lead to a reduction in the number of startups, which often provide some of the best jobs, further impacting the dynamism of the United States economy.
In conclusion, while the new $100,000 fee for H-1B visas is intended to curb program abuse, its potential impact on the banking and payments industries could be significant. With increased costs for hiring and potential impacts on competitiveness and innovation, the fee could reshape these industries in the years to come. For more details, please check the source Here.
