US visa fees to rise by 15%
On Tuesday, March 28, the Department of State announced that fees for certain nonimmigrant visas (NIV visas) would increase by 15 percent. Published in the Federal Register on the same day, the rule will come into effect from May 30, 2023.
Several visas are concerned, starting with tourist and student visa fees, increasing from $160 to $185. Temporary workers will also be affected by the measure. For example, applying for an H work visa (including the well-known H-1B visa) will cost $205, up from $190 currently. The rise will also apply to the L (transfer within a company), O and P (sportsmen or artists with exceptional abilities), Q (professor, teacher, trainee) and R (religious worker on a temporary basis) visas. Fees for investor visas (category E) are increasing significantly, from $205 to $315.
Why such increases? According to US authorities, visa fees are based on the operating costs of their services. However, they point out that the fees have not been upgraded since 2014, and even 2012 for some of them, although these services have seen a substantial increase in their workload. In addition, according to the Department of State, longer processing times and the mismatch between visa fees and the actual workload did not allow optimal processing of received requests.
However, the Department is reassuring. Work and tourist visas remain pillars of American immigration policy. They are indispensable, as they are often the first port of entry for expatriates.
The US remains an attractive destination for expats
Will this increase in visa fees deter expatriates? No, according to the State Department. Its statement says it recognizes the critical role of international travel in the US economy. Despite the State Department's adjustment, travel is likely to continue this year. Joe Biden's ambitious anti-inflation plan and its more than 450 billion in subsidies to manufacturers relocating to the United States have boosted the country's attractiveness. The plan passed in August 2022 is causing other economies worldwide to break out in a cold sweat, starting with the European Union.
The United States is and remains a land of immigration. Although COVID caused the number of immigrants to plummet, figures are back to pre-pandemic levels. In 2020, 447 million work visas (H1B, H2B, H4) and 240 million student visas were granted. The figures dropped to 201 million work visas and 149 million student visas in 2021 but jumped back in 2022, when 543 million work visas and 259 million student visas were issued.
The number of foreign workers in the United States is gradually growing again. It increased to over 400 million after 2010, crossing the 500-million mark in 2015. COVID broke the growth curve for 2 years, but the country soon returned to normal. As a result, the number of visas issued in 2022 is very close to that of 2019 (566 million). The same is true for student visas. Overall, the number of visas issued in 2022 is almost similar to 2019 (252 million).
Cities that are attracting foreign talent
San Jose, Sunnyvale, Santa Clara (California), Pittsburgh (Pennsylvania), Jackson (Mississippi), Baltimore, Columbia, Towson (Maryland), Seattle, Tacoma, and Bellevue (Washington) are some of the new metropolitan areas that are attracting foreigners. What do they have in common? Well, they are smaller than megacities like New York or Los Angeles. There is a phenomenon that analysts have been observing for quite some time now. Immigrants are moving away from large megacities to small and medium-sized ones. Paradoxically, they would have more opportunities to grow their careers in these cities.
Focus on the Sun Belt
The Sun Belt comprises the southern states of the United States and extends as far as Florida. This "Sun Belt" is made up of cities whose influence is felt far beyond their borders.
The success of these medium-sized cities is reflected in the Pittsburgh boom. In 2022, the city was ranked 13th worldwide for emerging startups. We don't often think of cities like Pittsburgh when talking about innovation, startup spirit and Tech. While the historical Silicon Valley and New York remain the reference ecosystem, other new innovation centers are developing, precisely in these more medium-sized cities.
Following Pittsburgh's footsteps, Detroit and Chicago are also in the news headlines. These cities are currently benefiting from the presence of large companies that are also choosing regional relocation. For example, Pennsylvania, the home State of Pittsburgh, has several companies with more than 10,000 employees: PNC Financial Services, Howmet Aerospace, The Kraft Heinz Company, and Highmark Health.
In January, Chicago reached out to foreign workers who had been laid off from Tech. The city highlights the presence of economic giants such as Caterpillar and TransUnion. Chicago intends to become a new technology hub.
A leader in foreign investment
In January, Investing in America, published by the Financial Times and the Nikkei, ranked Miami as the to^p city for foreign investment. The IMF believes that the city's attractiveness even extends to the whole country. On December 7, 2022, a survey published by the IMF revealed that the United States was the top destination for foreign direct investment (FDI). In fact, the country is neck and neck with China, depending on whether or not Hong Kong is included. In 2021, mainland China received $3578 billion in FDI. The United States received $4977 billion. But if Hong Kong's stats are included in China's FDI, the figure rises to $6891 billion.
Positive FDI figures in the US and the anti-inflation plan will likely encourage companies to locate in the US. This is another bonus for foreigners looking to settle and work in the US in the long run.
Useful links:
Apply for Nonimmigrant Visas to the US.
