H-1B Visa Fee Could Cost US $38 Billion Over 10 Years: Tech Firms
Study says proposed $103,265 H-1B fee could cost the Treasury up to $38 billion over a decade.
According to a new study by the CCIA Research Center, the proposed $103,265 fee for H-1B visas could cost the US Treasury up to $38 billion over a decade if the number of annual petitions falls significantly. The CCIA, representing technology and communications companies, challenges the Department of Homeland Security's assumption that employers will continue filing approximately 85,000 cap-subject H-1B petitions each year.
DHS estimates the fee would generate $8.8 billion annually in revenue. The H-1B program permits US employers to temporarily hire foreign professionals in specialized fields, often requiring a bachelor's degree or equivalent experience. Supporters argue the program addresses talent shortages and enhances US competitiveness, while critics claim it can lead to wage suppression, job displacement, or reliance on cheaper foreign labor.
The CCIA study models four possible employer responses to the fee and calculates the impact on federal revenue under each scenario. Government receipts would only surpass related tax revenue if employer filings decline by less than about 25%. In scenarios where filings drop by roughly 36% to 38%, federal receipts would be between $32 billion and $38 billion lower over a decade.
A more severe scenario predicts a reduction of up to $142 billion. CCIA chief economist Trevor Wagener criticized DHS for relying on revenue projections that assume no significant drop in applications despite the substantial cost increase per application. The White House has not yet responded to a request for comment.
Written by urgent.news from Newsweek's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
