The new order of the Donald Trump administration to increase the H-1B visa fee to $100,000 has stirred a massive row across the world, especially in India as the decision severely impacts the Indian IT employees. While there has been multiple statements by several leaders of the US admin on who all will be affected by the decision, the debate continues as to what would be the long-time implications. Now reports say there is a high probability that the H-1B issue will face legal challenges. 

The order requires US firms to pay the amount to secure the H-1B visa holders’ employees. As the order made headlines, several top companies (Microsoft, Meta, Amazon) asked their employees to return to the US by September 21, leading to chaos.

Now, a former senior official at US Citizenship and Immigration Services told the New York Times that the new order is unlikely to “survive five seconds in court”. “Tying an entry ban to a fee, let alone a $100,000 fee, isn’t likely to survive five seconds in court,” the official, Doug Rand, was quoted as saying by the NYT.

“It’s not how the laws of a country are administered,” said Tom Jawetz, a former senior attorney at the Department of Homeland Security under former US President Joe Biden.

What is an H-1B visa?

The H-1B visa is a non-immigrant visa using which American employers hire foreign workers in specialised fields that need in-depth knowledge and at least a bachelor’s degree. 

This is mostly used by industries in sectors like information technology, finance, and engineering.

The US commerce secretary backed Trump’s decision to impose a $100,000 fee, and said, “Either the person is very valuable to the company and America, or they’re going to depart, and the company is going to hire an American.” The US government, under Trump, has been criticising the H-1B visa, arguing that companies misuse it to hire cheap labour leaving Americans behind.

According to reports, the new order shall remain valid for 12 months and a decision on renewal will only be taken after the H1-B lottery.

India’s response to H-1B visa row 

The Ministry of External Affairs, in an official statement, said that it is studying the implications of the step on Indian industry. “This measure is likely to have humanitarian consequences by way of the disruption caused for families. The government hopes that these disruptions can be addressed suitably by the US authorities,” the statement read.

“Industry in both India and the US has a stake in innovation and creativity and can be expected to consult on the best path forward,” it added.

MEA spokesperson Randhir Jaiswal mentioned that skilled talent mobility and exchanges have contributed enormously to technology development, innovation, economic growth, competitiveness and wealth creation in the United States and India. “Policy makers will therefore assess recent steps taking into account mutual benefits, which include strong people-to-people ties between the two countries,” he added.

He said the announcement is likely to have humanitarian consequences by way of the disruption caused for families. “The government hopes that these disruptions can be addressed suitably by the US authorities,” the MEA added.