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IS THE VA EXEMPT FROM THE $1,000 H-1B FEE?
Under the American Competitiveness and Workforce Improvement Act of 1998, commonly known as ACWIA, a $1,000 fee is imposed on any U.S. employer that submits an H-1B petition with the INS to employ a specialty occupation worker, except those who fall under various exemption categories. The original fee created by ACWIA was $500 and was increased to $1,000 in 2000. 
 The purpose of the fee is to fund retraining programs for US workers who lack the skills necessary to compete for jobs in demand. In 1998, ACWIA created six categories of employers who are exempt from the $1,000 fee: 
  
1)                 The employer is an institution of higher education; OR 
2)                 The employer is a nonprofit organization or entity related to, or affiliated with an institution of higher education; OR 
3)                 The employer is a nonprofit research organization or governmental research organization; OR 
4)                 The petition is the second or subsequent request for an extension of stay filed by the employer; OR 
5)                 The petition is an amended petition that does not contain any requests for extension of stay; OR 
6)                 The petition is to correct an INS error 
 The 2000 amendment to ACWIA also created two additional categories for exemption: 
      7)                 The employer is a primary or secondary education institute; OR 
8)                 The employer is a nonprofit entity which engages in an established curriculum-related clinical training or students register at the institution. 
 Now questions have arisen regularly whether the Department of Veterans Affairs (VA) is exempt under one or more of the above categories from paying the fee. 
 Some have considered VA facilities to be exempt under categories number 2 and 3.  Others contend that the VA may be also exempt under category number 8. And others take the position that the VA is not exempt at all. 
 VA hospitals file separately for H-1B visas and in the past have taken different positions on the fee. 
 Now the VA’s headquarters has apparently settled the matter by coming down on the side of paying the fee. They are basing their position on the 1998 ACWIA Act, though some still argue that the 2000 changes render the Headquarters position irrelevant since the new exemptions should cover the VA. 
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