The Donald Trump administration’s H-1B visa fee hike to $100,000 may lead to companies opting for cheaper alternatives such as L1 and O1 visa categories.Despite having more rigorous qualification requirements and not being complete substitutes for H-1B visas, organisations are likely to develop strategies to prepare candidates for these alternative visa categories, according to experts.
According to an ET report, legal experts anticipate increased applications for L1 and O1 visas, as these alternatives become more cost-effective compared to the recently increased H-1B visa fees.
H-1B alternatives: What are L-1 and O-1 visas & what is their cost?
- L-1 and O-1 visas are ideally for individuals seeking intracompany transfers and those with extraordinary abilities respectively.
- Official statistics indicate that the O1 visa option, now costing approximately $12,000, represents just over one-eighth of an H-1B visa’s cost.
- It offers advantages such as no numerical limitations, no lottery system, and a 93% success rate. In contrast, H-1B visas have an annual limitation of 85,000 and a 73% rejection rate.
- In fiscal year 2024, the United States granted 19,457 O1 visas. Over the past decade, the proportion of Indian recipients has increased substantially from 2% to 8%.
- The L1 visa, which remains exclusively linked to the employer, presents a more economical option, with average costs of $7000, significantly lower than H-1B expenses.
- According to US Immigration and Citizenship Services (USCIS) data analysis, Indian nationals represented 26% of L1 approvals in fiscal 2024 (71,799), showing a decrease from 30% a decade earlier. The L1 approval numbers closely matched the 85,000 H1B limit applicable to STEM candidates.
H-1B vs L1 visas
L-1 and O-1 visas: Can they be effective substitutes for H-1B?
Rohit Jain, managing partner at Singhania & Co. notes that the L1 and O1 categories cannot directly substitute H1B visas. L1 visas are restricted to staff members who have served at an international branch of their employer for a minimum of one year within the previous three-year period. The O1 classification demands substantial evidence demonstrating exceptional ability, he told ET.Also Read | Trump hikes H-1B visa fee to $100,000! How much does it cost right now & how will Indian IT companies, tech employees be hit? Explained“But yes, despite these limitations, the sheer financial pressure of the new H-1B fee will likely compel companies to look for workarounds,” he noted.Sahil Nyati, founder at Jinee Green Card – a US-based immigration consultancy told ET, “The O-1 has no lottery and is skill-based. Employers save money and only file for people who’ve put in the effort to upskill and prove they’re truly talented. The O-1 can also be extended beyond the 6-year H-1B limit; it builds good credibility for employers, and it’s a steppingstone toward the EB-1A green card.“For highly motivated and talented individuals, pursuing the O1 visa is recommended,” explained Soundarya Balasubramani, who achieved her O1 status through the publication of her book ‘Unshackled’.She elaborated on the advantages, stating, “Because not only does it let you skip the lottery and not worry about the $100,000 visa fee, it also gives you flexibility in terms of indefinite renewals as well as the ability to not make minimum wage, which is great for founders.”OpenSphere and LegalBridge founder Atal Agarwal suggests that both the H-1B fee framework and associated immigration regulations might face challenges in federal courts, potentially exceeding statutory authority and breaching established administrative protocols.With regard to talent migration, firms are likely to adopt a cautious approach, utilising this period to strengthen their candidates’ O1 visa eligibility through academic publications, literary works, public speaking engagements and overall professional standing, according to Agarwal.Comparing investment routes, he pointed out that EB5 offers more advantages than the Gold Card programme. “At least with EB5 you can make an investment which is recoupable if you meet certain criteria. Gold Card doesn’t make the Green Card cheaper or easier, it will still put you in the queue, maybe a faster one than EB-1A or EB5.”Russell A Stamets, partner at Delhi-based immigration advisory firm Circle of Counsels, cautioned against overconfidence in the Gold Card system. “Anyone who thinks buying a so-called Gold card will give peace of mind is not looking at the situation carefully.”He added with humour, “There is no reason to think that this visa will end one’s immigration risk under the current administration. It’s not called hafta because you pay only once.”