"US Proposes $103,265 H-1B Fee, Threatening Indian Workers and IT Firms"
H-1B Visa
US non-immigrant work authorisation for specialty occupations requiring at least a bachelor's degree.
Annual Cap
Statutory limit of 85,000 H-1B visas per year (65,000 general + 20,000 advanced degree).
The H-1B visa is a non-immigrant work authorisation category created under Section 101(a)(15)(H) of the US Immigration and Nationality Act (INA), formalised by the Immigration Act of 1990. It allows US employers to temporarily hire foreign nationals in specialty occupations requiring at least a bachelor's degree. The annual numerical cap stands at 65,000 regular visas plus 20,000 for holders of US advanced degrees from American universities, totalling 85,000 slots per fiscal year. The programme is administered by USCIS (US Citizenship and Immigration Services) under the Department of Homeland Security (DHS).
Historically, H-1B petition fees ranged from approximately $2,000 to $5,000 depending on employer size and petition type. The constitutional architecture of US immigration law vests the power to regulate immigration and impose revenue-generating fees on visa petitions in Congress, not the executive branch. This structural principle has become directly relevant as executive-driven fee impositions have faced judicial challenge. Indian nationals have consistently accounted for roughly 70–71% of all H-1B approvals, reflecting the deep integration between India's engineering and IT education ecosystem and US corporate demand.
The H-1B programme operates through a lottery system when applications exceed the annual cap. Employers must first obtain a Labour Condition Application (LCA) from the Department of Labor, attesting to prevailing wage compliance, before filing with USCIS. Visas are approved for three to six years. The programme has two distinct pools: the general cap of 65,000 and a separate 20,000 reserved for workers holding advanced degrees from US institutions.
The programme has long been contested. Critics argue that companies use it to replace American workers with cheaper foreign labour, suppressing wages and reducing opportunities for domestic graduates. Supporters counter that it addresses genuine skill shortages in technology, research, and education. …
Indian diaspora has scaled new heights in the West. Describe its economic and political benefits for India.
Consider the following statements regarding the H-1B visa programme of the United States:
1.The annual cap on H-1B visas is 65,000 for the general category and an additional 20,000 for holders of advanced degrees from US universities.
2.The programme is administered by the US Department of State.
3.Indian nationals have consistently accounted for over 70% of all approved H-1B petitions in recent years.
4.Cap-exempt H-1B petitions include those filed by universities and non-profit research institutions.
How many of the above statements are correct?
The US Department of Homeland Security's proposed $103,265 H-1B fee relies on which statutory provision as its primary legal basis?
With reference to the earlier $100,000 H-1B fee imposed by executive directive, consider the following:
Assertion (A): A US federal court struck down the fee on the ground that it functioned as a tax rather than an entry restriction.
Reason (R): Under the US Constitution, the power to levy taxes is vested in Congress, not the executive branch.
Which of the following is correct?
Match the following with reference to the H-1B visa programme:
List I (Feature) — List II (Detail)
P. General annual cap — 1. Section 286 of the INA
Q. Advanced-degree cap — 2. 65,000 visas
R. Statutory fee-setting authority — 3. 20,000 visas
S. Programme administrator — 4. USCIS under DHS
Select the correct answer:
Consider the following statements regarding the impact of the proposed H-1B fee on India:
1.Indian nationals accounted for 71% of all approved H-1B petitions in FY2024.
2.Cap-exempt H-1B petitions filed by universities and non-profit research institutions would also be subject to the proposed $103,265 fee.
3.H-1B registrations fell from approximately 794,000 in 2023 to around 344,000 in 2025.
4.The proposed fee is estimated to raise approximately $8.8 billion annually.
Which of the statements given above are correct?
Want the full note, Prelims Facts & MCQ answers?
Create a free account — takes less than a minute.
Create free account