The Trump administration has proposed a new fee of approximately $103,000 for each candidate sponsored for a new H-1B visa. This move follows a federal court striking down an earlier attempt by the administration to impose a $100,000 fee on some highly-skilled foreign workers. Unlike the prior initiative, this new proposal, announced on Monday, would apply more broadly to almost anyone getting a new visa, not just those outside the country.
This proposed fee represents a substantial increase from the previous H-1B-related charges, which typically ranged from $2,000 to $5,000. The administration's argument for this hike is to prevent foreign workers from displacing American jobs, while business groups contend the H-1B program is vital for addressing skill shortages and recruiting specialized talent.
The measure is expected to disproportionately affect Indian professionals, who accounted for about 71% of H-1B beneficiaries in 2024, representing the largest share of the 399,402 H-1B petitions approved that year. The proposed fee would apply to new H-1B visas but would not cover foreign nationals already in the US on student visas transitioning to H-1B status, nor would it apply to renewals of existing H-1B visas. The Department of Homeland Security's proposal is part of a broader tightening of US immigration rules, which also includes enhanced vetting of applicants and potential changes to the visa selection process to favor higher-skilled workers.
Legal challenges are anticipated if the proposal is finalized, with opponents arguing that the administration lacks the authority to impose such a large fee without congressional approval. The administration, however, maintains that the charge is not a conventional tax and falls within the president's authority to restrict the entry of foreign nationals deemed detrimental to US interests. Earlier this month, the DHS also proposed additional fees of up to $4,500 for certain applications involving H-1B workers seeking to extend their stay or transfer employment, and is considering eliminating the 60-day grace period for unemployed H-1B workers.
The combined impact of these proposed changes could significantly increase the financial burden on employers and create greater uncertainty for foreign professionals, particularly the large Indian community that relies on the H-1B program. The measure seeks to formalize a fee that was temporarily introduced last year and subsequently blocked by a federal court, with appeals over that decision still pending.
