US Proposes Massive H-1B Fee, Potentially Impacting Indian IT Stocks

The US Department of Homeland Security has proposed a $103,265 fee on H-1B cap-subject petitions in addition to existing fees. This proposal will be open for public comment for 30 days after its publication in the Federal Register.

DHS estimates that this new fee could generate around $8.8 billion annually based on an estimated 85,000 H-1B cap-subject petitions annually. The proposed charge would apply to H-1B petitions that fall under the annual cap, including those eligible for the advanced-degree exemption.

This move is likely to affect Indian technology companies such as Infosys, TCS, and Wipro, which rely heavily on the H-1B visa programme to deploy skilled workers in the US. A substantial increase in visa-related costs could impact the expenses faced by US employers hiring foreign workers through this programme.