Trump's H-1B Visa Fee Hike Could Cost Penn State Millions
Penn State could face millions of dollars in additional expenses due to a recent H-1B visa fee imposed by the Trump administration. The new fee, totaling $100,000 per application, targets new petitions and could significantly impact employers in Centre County that rely on foreign workers.
The New H-1B Visa Fee: A Breakdown
The Trump administration instituted the fee based on the claim that American workers are being "replaced" by lower-paid foreign workers. However, critics argue that H-1B visa recipients fill crucial roles in sectors like healthcare and contribute to innovation. The new fee only applies to new applications; renewals are exempt.
Impact on Centre County Employers
Beyond Penn State, other Centre County employers, including the Centre Area Transportation Authority (CATA), AccuWeather, and various tech firms, could be affected. While Penn State has averaged 74 new H-1B visa applications annually since 2015, a smaller number of applications originate from other employers in State College and Bellefonte.
Voices from the Community
Levent Kaya, CEO of Young Scholars of Central Pennsylvania Charter School, expressed concern and noted that his school is actively working with immigration attorneys to understand the implications. He emphasized the importance of foreign language teachers on the visa, stating, "Students aren’t just learning how to conjugate verbs; they’re learning how holidays are celebrated, what foods are prepared, and how people interact in daily life."
Potential Financial Burden on Penn State
If Penn State maintains its current rate of sponsoring new H-1B visa recipients, the university could be facing a bill of over $10 million. While the university's overall budget is substantial, this added expense would coincide with federal spending cuts and a prolonged budget impasse in Pennsylvania. Three-quarters of Penn State's H-1B visa recipients since 2019 were for jobs with salaries less than $100,000.
Limited Options and Uncertainty for Employers
The options available to employers are currently unclear. Melissa Roth of the Chamber of Business & Industry of Centre County indicated that the chamber lacks specific recommendations and has not received inquiries from members. However, Greg Scott, CEO of the Chamber, stated that they are committed to providing guidance and support to affected businesses.
Penn State's Response
Penn State initially advised international faculty against travel when the proclamation was signed. However, after clarification that the restrictions do not apply to current visa holders, the university adopted a less definitive stance. Wyatt DuBois, a university spokesman, stated that Penn State is providing support to employees and prospective employees utilizing H-1B visas.
