NFAP Study Reveals Higher H-1B Visa Fees Could Threaten US Economic Growth

Your chances of securing an H-1B visa in 2024 are slimmer than ever, despite the rising demand. In fact, USCIS received H-1B registrations for 442,000 unique beneficiaries in FY 2025, yet the annual cap remains fixed at just 85,000 visas – a mere 0.05% of the U.S. labor force.

The impact of H-1B visa fees extends far beyond individual applications. Since 2004, employers have invested more than $6 billion in H-1B fees, funding approximately 100,000 scholarships for U.S. students in science and technology fields. However, with over 650,000 job vacancies in computer occupations requiring bachelor’s degrees, the current visa system struggles to meet market demands. As H-1B visa fees continue to rise, you need to understand how these changes affect both employers and the broader U.S. economy.

USCIS Announces 70% Higher H-1B Visa Fees

The Department of Homeland Security has announced substantial increases in H-1B visa fees, marking the most significant fee adjustment for immigration benefits requests in nearly eight years. The Form I-129 filing fee for H-1B petitions will increase by 70%, reaching INR 65,816.75 from the current INR 38,815.01.

New Fee Structure Breakdown

The comprehensive fee structure introduces multiple new components. Specifically, employers must pay an asylum program fee of INR 50,628.27 for companies with 26 or more employees, while smaller employers with 25 or fewer workers will pay INR 25,314.14. Additionally, the H-1B registration fee will surge to INR 18,141.80 from INR 843.80.

Timeline for Implementation

The implementation schedule follows a phased approach. Furthermore, the new registration fee takes effect for the FY 2026 cap season starting March 2025. Consequently, all other fee increases, including the basic filing fee and asylum program fee, become effective April 1, 2024. The U.S. Department of Treasury has temporarily increased the daily credit card transaction limit to INR 8,438,044.24 to accommodate these changes.

How Much Do Employers Really Pay for H-1B Workers?

Initially, employers face substantial financial commitments when sponsoring H-1B workers, with total costs reaching over INR 2,784,554.88 for filing an initial petition and extension.

Direct Visa Costs

The base filing structure comprises mandatory fees that employers must cover. Primarily, companies pay INR 65,816.75 for the I-129 petition. Moreover, employers must submit an anti-fraud fee of INR 42,190.23 and an ACWIA education fee ranging from INR 63,285.34 to INR 126,570.68, based on company size.

Hidden Expenses

Beyond basic filing fees, employers encounter additional costs. Notably, companies with over 50 employees, where H-1B and L-1 visa holders exceed 50% of the workforce, must pay an extra INR 337,521.80. Legal representation adds INR 126,570.68 to INR 337,521.80 to the process. When USCIS issues a Request for Evidence, employers face supplementary attorney fees between INR 168,760.90 and INR 379,712.03.

Total Investment Per Employee

The comprehensive investment per H-1B employee varies based on company size and circumstances. A typical employer spends approximately INR 793,176.24 for a first-time H-1B visa holder under the new fee structure, including attorney fees and premium processing. Filing an extension raises employer costs to about INR 1,518,848.11.

Over two decades, employers have contributed more than INR 506.28 billion toward H-1B fees, funding roughly 100,000 scholarships for U.S. students in science and technology fields. The investment has proven worthwhile, as H-1B professionals in computer-related occupations earned a median salary of INR 10,378,795.45 in 2022.

Global Tech Hubs Capitalize on US Fee Hikes

First thing to remember, as H-1B visa costs climb in the United States, other nations are launching strategic initiatives to attract global tech talent. Canada stands at the forefront of this shift, introducing a dedicated work permit stream that targets up to 10,000 H-1B visa holders with three-year open work permits.

Canada’s Growing Appeal

The Canadian government’s Tech Talent Strategy offers compelling alternatives to U.S. immigration pathways. As opposed to complex visa requirements, Canada provides work permits for digital nomads staying up to 6 months without requiring additional documentation. The country’s technology sector generated INR 1096.95 billion through its largest tech park, Kanata North, which houses more than 540 companies and 23,000 employees.

European Union’s Talent Initiatives

In light of global competition, the European Union has unveiled its Skills and Talents Package. The reforms streamline immigration processes through:

Together with these reforms, the EU has announced Talent Partnerships with North African partners, particularly Egypt, Morocco, and Tunisia. The program supports partner country nationals through study, work, and training opportunities across the EU, establishing a comprehensive framework for international mobility.

Why Silicon Valley Leaders Warn Against Fee Increases

Silicon Valley executives raise significant concerns about escalating H-1B visa fees, pointing to critical talent shortages across the technology sector. According to the U.S. Bureau of Labor Statistics, the tech industry faces a projected deficit of 1.2 million workers by 2026.

Innovation Pipeline Concerns

The tech sector’s growth rate presently doubles that of the overall workforce, requiring 350,000 tech workers annually to meet demand. Studies reveal that foreign STEM workers contributed to 30-50% of U.S. aggregate productivity growth between 1990 and 2010.

Research demonstrates that H-1B workers typically earn comparable or higher wages than American counterparts, with a median salary of INR 10,378,795.45. Subsequently, this contradicts claims about wage suppression.

Startup Ecosystem Impact

The startup landscape underscores the vital role of immigrant entrepreneurs. Simultaneously, 44% of billion-dollar startup founders are foreign-born. Bill Coleman, CEO of Veritas, emphasizes that Silicon Valley cannot hire enough qualified professionals locally, leading to salary inflation as companies compete for limited talent.

Indian-American entrepreneurs exemplify this impact, owning approximately 50% of economy hotels while comprising just 1.5% of the population yet contributing 6% of taxes. Harvard Business School research indicates that H-1B workers significantly boost patent activity, especially in emerging technologies.

Conclusion

Evidence shows that higher H-1B visa fees create significant challenges for U.S. economic growth and innovation. American companies face a critical shortage of 650,000+ tech workers, while competing nations like Canada and the EU actively welcome global talent through streamlined immigration processes.

These fee increases affect your business growth potential, especially when considering that H-1B professionals earn a median salary of INR 10,378,795.45 and drive substantial patent activity. Silicon Valley leaders highlight this talent crisis, pointing to a projected deficit of 1.2 million workers by 2026.

The data speaks clearly – H-1B workers boost U.S. productivity, with foreign STEM professionals contributing up to 50% of aggregate productivity growth. Their impact extends beyond technology, as demonstrated by Indian-American entrepreneurs who own 50% of economy hotels while representing just 1.5% of the population.

Ultimately, the success of American innovation depends on maintaining competitive immigration policies that attract and retain global talent. The current fee increases risk pushing skilled professionals toward other markets, potentially slowing U.S. technological advancement and economic growth.