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kevinkris
08-06-2010, 01:57 PM
Is it a big blow for desi consulting firms??

US raises H-1B, L1 visa fee by $2000


Washington: The US Senate today approved a substantial increase in application fees for H-1B and L1 visas, most sought after by Indian IT professionals to fund a $ 600 million emergency package to improve security along the porous Mexican border.

The proposed massive increase in H-1B and L1 visa application fee would primarily affect the top Indian IT companies who rely majorly on these categories of visas to continue with their work in the US. The Senate measure increases the visa fee to $ 2,000 per application on those companies that have less than 50 percent of their employees as American citizens.

"I prefer our source, which is from these companies which are not, as I say they are companies whose whole purpose is to bring people in on H-1B and the vast majority of them from other countries who go back to the other countries. That is a better funding source," Senator Charles Schumer from New York said in his remarks on the Senate floor.

Schumer along with his other democratic colleagues including Senator Claire McCaskill has introduced the legislation in this regard, which was passed by unanimous consent. During the debate, however, Senator John McCain wanted to fund the security along the Mexican border with the stimulus money, which was turned down by Schumer.

"The bottom line is this. I like the H-1B programme, and I think it does a lot of good for a lot of American companies. In fact, in the immigration proposal I made, along with Senator Reid and Senator Menendez, as well as the outline with Senator Graham, we expand H-1B in a variety of ways," Schumer argued.

"There is a part of H-1B that is abused, and it is by companies that are not American companies or even companies that are making something. Rather, they are companies that take foreign folks, bring them here, and then they stay here for a few years, learn their expertise, and go back. We think we should increase the fees when they do that," the Senator said.

Rejecting McCain's proposal to get the funding from the stimulus money, Schumer said: "I hope, even though I cannot accept these amendments, that maybe we could come together on something that we could bring back in September because I do believe we have to secure the border."

Schumer said: "Even in the comprehensive proposal that we made, we said we have to secure the border and do other things as well. It is my belief that securing the border alone will not solve our immigration problems; that until we have comprehensive reform, particularly in making sure employers do not hire illegal immigrants which they now do, even though they do not know they are illegal immigrants because documents are so easily forged, that we have to do comprehensive. But we should do the border. To say we have to do comprehensive does not gainsay that we have to work on theborder and work on it quickly and soon."

It is not clear yet, if this increase would also apply only to those firms that are also H-1B-dependent.

cbpds
08-06-2010, 02:09 PM
Its a massive hit even to some staffing comps here

kevinkris
08-06-2010, 02:13 PM
8/06/2010: Senate Passed H-1B and L-1 Filing Fee Substantial Increase Yesterday as Part of $600 Million Emergency Border Security Supplemental Appropriations Act of 2010
• The House passed the Emergency Border Security Supplemental Appropriations Act of 2010, which the Senate passed it yesterday with amendments. One of the amendments includes the following fee increase for H-1B and L-1. This amendment was sponsored by Sen. Charles Schumer of New York. The amendment provides:
o L-1 Filing Fee and Fraud Prevention and Detection Fee Wiil be Increased by $2,250 for Petitioners Employing 50 or More Employees in the United States and More Than 50% of the employees are H-1B or L-1 Employees
o H-1B Filing Fee and Fraud Prevention and Detection Fee Will be Increased by $2,000 for Petitioners Employing 50 or More Employees in the United States and More Than 50% of the employees are H-1B or L-1 Employees.
o The total filing fees after this legislation will be much higher than these figures in that these employers will also have to pay $1,500 American Worker Training Fees for H-1B petition plus current fraud preventiuon fee of $500 and I-129 filing fee of $320.
o The Increased Fee will take effect on the date this bill is enacted into a law by the President's signature and remain in effect until September 30, 2014.
• The bill needs Senate-House Conference and unless the House and Senate leader agree to return to the session during the summer break which ends on 09/14/2010, this bill is not likely enacted into law untill after the Congress returns to the session after the summer break. The amendment will be found in Title IV, Section 402 (a) and (b) of H.R. 5875, as amended by S. 3721.
• Understandably, this bill will hit hard Indian giant consulting businesses since the employers that will be subject to the increased fees fit primarily Indian businesses such as Wipro, Infosys, Tata, etc. Report indicates that these firms started and will continue to lobby the Congress against this bill from here on.
• The fact that this amendment was introduced by the Chairman of Immigration Subcommittee of the Senate Judidiary Committee indicates that probably he intends to smooth out hardline opponents of CIR by showing strong support for border protection and protection of U.S. hi-tech labor markets in the environment of nation's struggling economy and unemployment rate. Please stay tuned.

vdlrao
08-06-2010, 02:21 PM
Its a massive hit even to some staffing comps here

It afftects staffing companies which ever has more than 50 employees, and 50% of them are not us citizens. Can some one confirm this please.