The Trump administration is proposing a hike in the H-1B visa application fee to increase funding for the expansion of an apprentice programme, which trains American youths in technology related activities, Labour Secretary Alexander Acosta told US lawmakers.

Testifying before a Congressional committee on annual budget of the Department of Labour for the fiscal year 2020 beginning October 1, 2019, Acosta, however, did not give details of the proposed increase in H-1B filing fee and as to which categories of applicants it would be enforced on.

“In FY 2020, the Department’s budget includes USD 160 million to continue our expansion of apprenticeship programmes, along with a proposal to increase H-1B fee revenues to fund additional apprenticeship activities,” Acosta said in his testimony on May 2 before the Senate Appropriations Committee Subcommittee on Labour, Health and Human Services, Education and Related Agencies.

Acosta told lawmakers that last year the Department of Labour had launched the first-ever sector-based apprenticeship grant funding opportunity to invest USD 150 million to expand apprenticeships in those in-demand industry sectors most often filled by individuals on H-1B visas, such as information technology, health care and advanced manufacturing.

But given past experience, the Indian IT companies, which account for a large number of H-1B applications, are likely to face the additional financial burden because of this proposed increase in H-1B filing fees.The H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. The technology companies depend on it to hire tens of thousands of employees each year from countries like India and China .

“As a result of this private sector match requirement, educators have a greater incentive to join with industry to ensure curricula address the needs of our ever-changing workplace, investing in the latest technologies and techniques, and providing more in-demand opportunities for Americans,” Acosta said.

On July 18 last year, the Department of Labour had announced USD 150 million in H-1B funds to support sector-based approaches to expanding apprenticeships on a national scale in key industry sectors.

The focus is on industries reliant on H-1B visas. It aims at expanding apprenticeships and increase the level of apprenticeship activity among a range of new employers within these industries, particularly small- and medium-sized businesses.

Acosta also told lawmakers that the Labour Department has also made changes to the H-1B application forms to ensure greater transparency and better protect American workers from employers seeking to misuse the programme.In fiscal 2018, the Department concluded 649 non-immigrant visa programme cases and found violations in 553 of those cases.