Bill Passed to Increase H1B Training Fee
Posted Oct 16, 2000

In our article on the American Competitiveness in the Twenty-first Century Act of 2000 ("ACTA") in the October 6, 2000 MurthyBulletin, we mentioned that a separate piece of legislation would increase the H1B training fee from $500 to $1000 per H1B Petition. That fee increase bill has now passed both Houses of Congress. The House of Representatives passed it on October 6, 2000. The Senate passed it on October 11, 2000.

The H1B training fee, which was instituted to provide grants for U.S. worker training programs in the high tech area, is paid by most employers who petition for H1B employees. Institutions of higher education and related nonprofit entities, as well as nonprofit and governmental research institutions, are exempt from paying this fee. The fee increase legislation reportedly broadens the categories of exempt employers to include elementary and secondary schools and certain curriculum-related training programs.

The fee increase will be especially difficult to bear for new companies needing to recruit experts from overseas to develop products or start up their operations. AILA had objected to the fee increase. Still, the fee increase was a result of a compromise that enabled the very favorable ACTA to be passed through Congress. It is expected that the President will sign the fee increase legislation, along with ACTA, in the next week or two. We do not at this time know when the effective date of the fee increase will be, but we will keep our MurthyBulletin readers updated.