Is the American Dream Now Out of Reach?

New Delhi, Sep 20 (NationPress) The recent increase in H-1B non-immigrant visa fees by President Donald Trump to an astonishing USD 100,000 poses significant challenges for countless Indian students pursuing the American Dream.

This hike is expected to drastically limit the hiring of low- and mid-level H-1B employees, leading to a concentration of approvals for senior and high-value positions. Consequently, employers and employees may need to explore alternative routes or adapt their staffing strategies.

Early signs of this shift are evident in travel advisories and market reactions, while medium-term implications will likely transform sourcing methods in technology, professional services, and higher education.

This fee increase primarily impacts individuals targeting entry- or mid-level roles where median salaries typically range from USD 65,000 to 80,000 per year for entry-level positions and USD 100,000 to 122,000 for mid-career roles.

These statistics are derived from the same document referenced in the President’s order titled ‘Restriction on Entry of Certain Nonimmigrant Workers’.

For those in high-ranking positions, employers might not find it burdensome to cover this fee, potentially sharing the cost with the employee.

However, the pathway to rise as the next Satya Nadella or Sundar Pichai is becoming increasingly difficult.

Indian nationals represent the largest group among H-1B visa holders, with approximately 70% of approvals, while China follows as a distant second. Other nations account for much smaller percentages.

Current estimates suggest there are around 440,000 to 446,000 individuals in the U.S. on H-1B visas, with reports indicating about 442,000 H-1B holders for FY 2025.

This visa category is predominantly occupied by professionals in computer-related fields, including software developers, data scientists, systems analysts, and artificial intelligence engineers.

Major technology firms and Indian service providers are the principal sponsors of these visas.

In contrast, affluent individuals can take advantage of the Gold Card visa program, which offers expedited immigration for individuals making significant financial contributions to the U.S., as noted in an Executive Order signed by the President on September 19.

This program allows for expedited immigrant visas for individuals donating USD 1 million individually or USD 2 million if funded by a corporation on behalf of an individual, as specified in the order.

On the same day, the ‘Restriction on Entry of Certain Nonimmigrant Workers’ order referenced a study from the Federal Reserve Bank of New York to support its claims.

The study reveals that among college graduates aged 22 to 27, computer science and engineering majors are encountering the highest unemployment rates in the nation, at 6.1% and 7.5% respectively, which is more than double the unemployment rates of recent graduates in biology and art history.

The report also indicates higher unemployment rates in anthropology (9.4%) and physics (7.8%), placing computer engineering in the top three.

Moreover, computer science and engineering are experiencing underemployment rates of 16.5% and 17% respectively, as per the published information.

The U.S. labor market in these specialized sectors is undergoing rapid transformation driven by the adoption of generative AI, hiring adjustments, and mass layoffs, with geographic rebalancing now added to the mix.

Meanwhile, information systems and management are seeing a 5.6% unemployment rate alongside a 28.5% underemployment rate, as per the Federal Reserve Bank of New York’s findings.

In addition to seeking talent overseas, American companies have been outsourcing manufacturing and frontline support roles to foreign firms, primarily in Asia, increasing demand for higher-value roles such as design and advanced engineering domestically, thereby reducing production costs and enhancing corporate profitability.

However, these developments have come at the expense of domestic employment in the affected sectors.