BY MOHAN NAIR*
The U.S. government has proposed a significant increase in H-1B visa fees, sparking heated debate in tech corridors, immigration circles, and policy forums, especially in the United States, India, and, to a lesser extent, China. While the move is often presented as a way to protect American jobs, the real question is: Will it?
To understand the impact, we must step back and ask—who is truly benefiting from the H-1B visa system? Is it the immigrant worker, the home country, the U.S. economy, or the corporations that rely on foreign talent?
The answer is not as straightforward as it may seem.
Who Really Benefits from the H-1B Visa?
The Worker
At first glance, the foreign worker appears to be the biggest winner. A successful H-1B applicant often secures a job in the U.S. paying four to five times more than they would earn for similar work in their home country. It’s no surprise this is seen as a life-changing opportunity.
But there’s more beneath the surface.
H-1B workers don’t just earn and remit money, they live, spend, invest, and pay taxes in the U.S. They buy homes, take out loans, celebrate life events, support local businesses, and contribute meaningfully to the American economy. Over time, a large portion of their income stays in the U.S., not just their host country.
The Home Country
Countries like India benefit from the remittances these workers send home, which bolster foreign exchange reserves and strengthen local economies. They also benefit from the people-to-people contact. In this context, the home country is clearly a secondary beneficiary of the visa system.
The U.S. Economy
Some critics argue that H-1B workers take away jobs from Americans. But this narrative ignores why the system exists in the first place: American companies need skilled talent, particularly in areas like technology and engineering.
The domestic labor market often lacks the specialized skills these jobs require or the cost of hiring equivalent local talent is significantly higher. Additionally, H-1B workers pay the same taxes as U.S. citizens and spend a large portion of their earnings within the country.
So, contrary to popular belief, they don’t drain the economy, they help sustain it.
The Real Beneficiary: Corporate America
At the core of the H-1B program lies one key incentive: corporate profitability.
U.S. companies benefit immensely from hiring H-1B workers:
- They can often pay less for more work.
- They gain operational flexibility by moving workers between projects and locations.
- H-1B workers have limited job mobility due to visa constraints, improving retention and reducing recruitment costs.
- Many are willing to work longer hours or take on odd shifts without demanding overtime, despite being legally entitled to it.
So, who’s really driving the demand for foreign labor? It’s not the workers—it’s the employers who are optimizing for cost under the pretext of a “skills shortage.”
Will Increasing Visa Fees Protect American Jobs?
In all likelihood, no.
Raising the cost of an H-1B visa may reduce some applications, but it won’t eliminate the fundamental economic motivations behind it. Companies will still need skilled talent, and if they can’t bring it in, they’ll outsource the work to countries where those skills are available at lower costs.
This creates a dangerous side effect: innovation follows the work.
By outsourcing R&D, software development, and other advanced tasks, U.S. companies not only lose operational control but also the innovation edge that comes with doing high-value work locally. This is one reason countries like China have emerged as technological powerhouses—they inherited the innovation along with the outsourced work.
So, without systemic reform, a visa fee hike may simply accelerate outsourcing—not solve unemployment.
What’s the Real Impact of the Fee Hike?
The short-term political win is clear.
Leaders can claim they are protecting American jobs, appealing to nationalist sentiment, and fulfilling campaign promises. But the real-world impact is more troubling:
- It won’t stop misuse of the system—only make it more accessible to the wealthy.
- It may exclude truly qualified but less affluent candidates.
- It doesn’t address the corporate incentives that lead to over-reliance on H-1B workers.
If anything, these changes may increase the chances of the system being gamed by those with money, rather than those with merit.
What Needs to Change Instead?
The H-1B program shouldn’t be a scapegoat for complex labor and economic challenges. It’s a reflection of globalization, evolving skill needs, and the relentless pursuit of profit. To make the system work better for everyone, we need real reforms, not reactionary measures.
Here’s what that could look like:
- Upskill the domestic workforce to meet the demands of emerging industries.
- Reevaluate corporate incentives that prioritize short-term cost-cutting over long-term national interest.
- Implement a skills-based visa system, rather than a lottery, to ensure alignment between job roles and candidate qualifications.
- Increase oversight, not just cost, to curb misuse and ensure ethical employment practices.
Final Thoughts
The H-1B visa fee hike may sound like a tough-on-immigration measure, but it misses the point. Without addressing the underlying economic and policy structures, this move is unlikely to protect American workers—and may, in fact, harm America’s competitiveness in the global innovation race.
The conversation must shift from blaming immigrants to rethinking policy, investing in talent, and ensuring fair labor practices across the board.
Until then, the fee hike is just another short-term fix for a long-term problem.
*Mohanan Nair is an Atlanta-based tech executive.
