H-1B NONIMMIGRANT PETITIONER FEES $92,500,000

The FY 2003 H-1B Nonimmigrant Petitioner Fees are projected to be $92.50 million, an increase of $2.50 million, or 2.8 percent, from the FY 2002 projected level of $90.0 million.

(Millions of Dollars)

Beginning in FY 1999, Title IV of the American Competitiveness and Workforce Improvement Act of 1998 (Public Law 105-277) established an H-1B Nonimmigrant Petitioner Account in the general fund of the U.S. Treasury for fees collected for each petition for alien nonimmigrant status. That law required that 28.2 percent of the funds in the H-1B Petitioner Account be made available to NSF for the Computer Science, Engineering, and Mathematics Scholarships program, and 4 percent of the Account will be made available for science enrichment and systemic reform activities:

• Computer Science, Engineering, and Mathematics Scholarships (CSEMS). Merit-based scholarships of up to $2,500 for up to two years were provided for new or continued enrollment at institutions of higher education by eligible low-income individuals pursuing associate, undergraduate, or graduate degrees in the disciplines specified.
  
  
• Grants for Mathematics, Engineering, or Science Enrichment Courses. These funds were intended to provide opportunities to students for enrollment in year-round academic enrichment courses in mathematics, engineering, or science. The first competition resulted in 12 projects in seven states and supporting several thousand students. A second competition is currently being held and another 12 projects are anticipated.
  
  
• Systemic Reform Activities. These funds supplemented the rural systemic reform activities administered under the Educational System Reform (ESR) Subactivity.

By the end of FY 2002, it is anticipated that the funds resulting from P.L. 105-277 will have been completely obligated.

In FY 2001, P.L. 106-311 increased the funds available by increasing the Petitioner fees. Also, the American Competitiveness in the 21^st Century Act (P.L. 106-313) amended P.L. 105-277, changing the percentage of the H-1B Petitioner Account available to NSF and realigning the distribution of those funds. CSEMS now receives 22 percent of the funds, and Public-Private Partnerships are allocated 15 percent of the funds in the H-1B Petitioner Account:

• Computer Science, Engineering, and Mathematics Scholarships (CSEMS). This activity continues under P.L. 106-313. The maximum scholarship duration was extended to four years and the annual stipend was raised to $3,125. It is estimated that funds for the scholarship program will be $53.55 million in FY 2002 and $55.04 million in FY 2003. Estimated obligations in FY 2002 will provide approximately 15,000 scholarships for students at 130 colleges and universities. Based on FY 2003 estimates, NSF expects to be able to support 15,500 students at 135 awardee institutions.
  
  
• Private-Public Partnerships in K-12. P.L. 106-313 directs that 15 percent of the H-1B Petitioner funds go toward K-12 activities involving private-public partnerships in a range of areas such as materials development, student externships, math and science teacher professional development, etc. Funds for this activity are expected to be $36.45 million in FY 2002 and $37.46 million in FY 2003.