A new federal policy imposing a $100,000 fee on H-1B visas is creating significant financial and operational challenges for Maryland's top universities. The rule change, which represents a roughly 20-fold increase from previous costs, is forcing institutions like the University of Maryland and Johns Hopkins University to reconsider their ability to hire and retain skilled foreign researchers and faculty.
The policy has already had a direct impact on individuals, including a Ukrainian war refugee whose research position at the University of Maryland is now in jeopardy. This development adds to the financial pressures already facing higher education institutions in the state.
Key Takeaways
- A new Trump administration policy raises the fee for new H-1B visas to $100,000.
- The University of Maryland could face over $13 million in new annual costs to maintain its current level of foreign talent.
- Foreign researchers, including a Ukrainian refugee at the University of Maryland, are losing their visa sponsorships.
- The policy also affects public school systems, with Baltimore City Schools stating it is now "financially impossible" to hire foreign teachers.
A Sudden and Steep Financial Burden
The administration's new immigration policy, set to take effect this Sunday, dramatically alters the financial landscape for employers of skilled foreign workers. The fee for a new H-1B visa will be $100,000, a substantial increase from the previous range of $2,000 to $5,000 per application.
For major research institutions, the financial implications are considerable. A Banner analysis of Department of Homeland Security data shows that the University of Maryland, the third-largest user of H-1B visas in the state, could face at least $13.8 million in additional costs per year if it continues to sponsor foreign professionals at its current rate.
Since fiscal year 2015, the University of Maryland and Johns Hopkins University have each had approximately 140 new H-1B applications approved annually. They also average about 70 extensions for current visa holders each year. The new policy's cost could make such hiring practices unsustainable.
A Pattern of Financial Pressure
This visa fee increase comes at a difficult time for Maryland's higher education sector. The University System of Maryland recently warned of "crippling" state and federal budget cuts that could result in layoffs. Similarly, Johns Hopkins University has extended a hiring freeze, citing ongoing financial uncertainty.
The Human Impact of Policy Changes
The consequences of the new rule extend beyond institutional budgets, affecting the lives of individuals who rely on the H-1B program. One such person is a 27-year-old researcher from Ukraine, who the Banner is identifying only as Alex for her safety.
After fleeing the war in her home country, Alex was offered sponsorship by the University of Maryland to continue her work on global hunger. This week, that offer was rescinded due to the new policy.
"I am terrified," Alex said. "I have panic attacks now. I can’t believe I’m going to be displaced again. I will be going back to Ukraine since I have no other choice. There are rockets flying there every day, so I am very scared."
Her situation highlights the immediate and personal toll of the policy shift. The H-1B visa was her only option for a long-term stay in the United States to continue her research legally. Both the University of Maryland and Johns Hopkins declined to comment on the new policy or Alex's situation.
Understanding the H-1B Visa Program
Established by Congress in 1990, the H-1B visa program is designed for foreign professionals in specialty occupations that require at least a bachelor's degree. It has become a critical tool for American companies and institutions to recruit international talent.
H-1B Visa Program at a Glance
- National Cap: 85,000 new visas per year for private companies, determined by a lottery system.
- Exemptions: Universities and nonprofit research organizations are generally exempt from this cap.
- Education Level: Nearly half of all H-1B visa holders have an advanced degree.
- Current Population: An estimated 700,000 people with H-1B visas currently reside in the U.S.
In Maryland, the state's leading universities have heavily relied on the program to attract top minds in science and research. An analysis of Department of Labor data shows that since 2020, the University of Maryland and Johns Hopkins have primarily used the program to hire medical scientists, biologists, and biochemists.
The typical annual salary for these positions is just under $70,000. With the new application fee now exceeding the yearly pay for many of these roles, the financial logic of hiring foreign talent through this channel has been upended.
Broader Implications for Research and Public Services
Experts warn that the new policy could have a chilling effect on innovation in American academia. Jeremy Robbins, the executive director of the American Immigration Council, expressed concern about the long-term consequences.
"This is going to mean that universities are going to bring in fewer talented people," Robbins stated, worrying that the policy will ultimately stifle scientific and academic advancement.
The impact is not limited to higher education. The Baltimore City Public Schools system, which has used the H-1B program to address teacher shortages by hiring educators from countries like Kenya and the Philippines, now finds its strategy unworkable.
Sherry Christian, a media and public relations manager for the school system, described continuing the program under the new fee structure as "financially impossible." This leaves the district to find other solutions for staffing its classrooms.
The policy change has also created confusion among employers, with conflicting guidance from administration officials about whether the fee applies only to new applications or to extensions as well. Karin Rosemblatt, director of the American Association of University Professors at the University of Maryland, noted the immediate and widespread concern on campus.
"The response about the visas was very immediate," Rosemblatt said. "There are lots of visa holders on our campus." As institutions navigate the financial fallout and individuals like Alex face uncertain futures, the full impact of the new H-1B visa fee continues to unfold.
