WASHINGTON — The Trump administration has proposed imposing a $103,265 fee on most new H-1B visa petitions for highly skilled foreign workers, a six-figure charge that would dramatically raise costs for employers and potentially reshape how U.S. companies recruit engineers, scientists, health professionals and other specialized workers.
The Department of Homeland Security published the proposed rule Monday in the Federal Register. If finalized, the new charge would apply to all H-1B petitions subject to the annual statutory cap, including petitions filed under the 20,000-visa exemption for workers with advanced degrees from U.S. institutions.
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The fee would be paid at the time an employer files an H-1B petition and would be added to all existing filing fees and payments.
The proposal is not yet effective. DHS will accept public comments for 30 days before deciding whether to issue a final rule, and the agency has not announced an implementation date. Employers should not assume the charge applies to current or pending petitions unless and until a final rule is published.
The proposed fee revives, in a broader regulatory form, an earlier Trump administration effort to impose a $100,000 charge on certain H-1B workers entering the United States. A federal judge blocked that earlier policy, prompting the administration to pursue a permanent rulemaking process.
If adopted, the proposal would represent one of the most consequential changes to the H-1B program in decades. Supporters say it could discourage employers from using the visa system to undercut U.S. wages. Critics warn it would shut out small businesses, startups, and many employers that depend on specialized international talent.
What DHS is proposing
The proposed rule would establish an additional $103,265 filing fee for H-1B petitions subject to the annual cap.
The charge would apply to the standard annual H-1B quota of 65,000 visas, as well as the separate 20,000-visa allocation for workers who hold a master’s degree or higher from a U.S. institution.
The fee would be paid by the employer, not the worker, at the time the petition is filed. It would come on top of existing H-1B charges, which can include a base filing fee, an asylum-program fee, anti-fraud fees, training fees, and, in some cases, additional fees for employers with large numbers of H-1B workers.
DHS said the proposed fee would help cover costs associated with administering the lawful immigration system, including activities performed by the departments of Homeland Security, Justice, State and Labor.
The agency framed the proposal as part of a broader effort to ensure that employers using the H-1B program contribute to the government costs created by high-skilled immigration.
But the amount is extraordinary. At $103,265 per petition, the fee would be more than 100 times the standard H-1B base filing fee.
For large technology companies, the added cost could amount to tens or hundreds of millions of dollars each year. For smaller firms, a single six-figure payment could make an H-1B hire financially impossible.
Who would be affected
The proposed fee would apply to cap-subject H-1B petitions.
That includes employers filing for workers selected in the annual H-1B lottery and for eligible advanced-degree holders using the separate master’s-cap process.
The affected group would likely include many technology companies, consulting firms, financial-services businesses, engineering companies, health-care employers and startups. These industries frequently use H-1B visas to hire workers in specialty occupations requiring at least a bachelor’s degree or equivalent expertise.
The rule would not apply to H-1B petitions that are exempt from the annual cap.
Cap-exempt organizations include institutions of higher education, nonprofit entities affiliated with universities, nonprofit research organizations, and government research organizations.
That exemption would shield many universities, university hospitals, and research institutions from the additional charge. It could be particularly important for academic science, medical research and higher education, where salaries may be lower than in the private sector, but international recruitment is often essential.
The proposal also would not apply to H-1B extensions, amendments or transfers involving workers who have already been counted against the cap.
In practical terms, the fee would target new entries into the cap-subject H-1B system rather than workers already employed in the United States under H-1B status.
That distinction matters for companies with existing H-1B staff. They may still be able to extend a worker’s status or move that worker to a new employer without facing the proposed $103,265 charge, depending on the final rule’s language.
The H-1B program in context
The H-1B program allows U.S. employers to hire foreign workers for specialty occupations. These jobs generally require theoretical or technical expertise in areas such as computer science, engineering, mathematics, medicine, finance, architecture, education, and scientific research.
Congress sets the annual cap at 65,000 visas, with an additional 20,000 visas reserved for people who have earned advanced degrees from U.S. universities.
Demand has frequently exceeded supply, leading the government to use a lottery system to select petitions for processing.
Employers must generally attest that they will pay H-1B workers the required wage for the occupation and geographic area. The program is intended to allow companies to fill positions requiring specialized skills that may be difficult to find in the domestic labor market.
Supporters of the program say it helps the United States attract global talent, sustain innovation and maintain leadership in areas such as artificial intelligence, software development, biotechnology and advanced manufacturing.
Critics say some employers use H-1B workers to reduce labor costs, outsource jobs or replace American employees. The program has long been the subject of political debate, with both parties supporting reforms but disagreeing about the best approach.
The proposed fee would address that debate not by changing wage rules or lottery procedures, but by making the program vastly more expensive.
A revival after a legal setback
The proposed rule follows a failed effort by the Trump administration to impose a $100,000 H-1B fee through a presidential proclamation.
That earlier policy applied more narrowly to certain H-1B workers entering the United States from abroad. A federal judge blocked it, finding legal problems with the administration’s use of executive authority.
The new proposal seeks to establish a more durable basis for the fee through the formal federal rulemaking process.
Instead of relying on a temporary proclamation, DHS is proposing to add the fee to federal regulations. The proposal was posted in the Federal Register, triggering the legally required public-comment period.
That approach gives the administration a stronger procedural foundation, but it does not guarantee that the rule will survive legal challenge.
Employers, trade groups, universities, immigrant-rights organizations and technology associations are likely to submit comments opposing the proposal. If DHS finalizes the rule, lawsuits could follow.
Legal challenges may focus on whether DHS has statutory authority to set a fee at this level, whether the amount is reasonably connected to the cost of administering the program, and whether the agency adequately considered the economic effect on employers and workers.
Immigration fees are generally expected to relate to agency costs. A six-figure fee could invite scrutiny if challengers argue that it functions as a policy penalty rather than a charge tied to processing expenses.
Why the administration supports the fee
The Trump administration has presented the proposed charge as a way to protect American workers and reduce the use of H-1B visas by employers that may seek lower-cost labor.
DHS said the fee would create a stronger incentive for companies to hire Americans, particularly in high-skill roles.
The policy aligns with Trump’s longstanding criticism of the H-1B program. During his first term, the administration pursued changes intended to tighten eligibility standards, increase wage requirements, and reduce the role of outsourcing firms in the visa system.
Supporters of the new fee may argue that companies willing to pay more than $100,000 to sponsor an H-1B worker will be more likely to use the program only for exceptionally valuable or hard-to-fill roles.
They may also argue that the charge would discourage employers from using H-1B visas for entry-level positions or labor models that depend on large numbers of temporary workers.
Critics counter that the fee would not distinguish effectively between companies that exploit the program and companies that use it legitimately.
A large multinational technology company might be able to absorb the cost. A small engineering firm, rural hospital, startup or specialized manufacturer might not.
That could concentrate access to global talent in the hands of the largest employers, while making it harder for smaller businesses to compete.
The economic impact
The proposed fee could have broad effects on the labor market.
For large technology firms, it would add a major new cost to hiring. Companies could respond by hiring fewer foreign workers, shifting some jobs abroad, increasing recruitment from U.S. universities or paying higher wages to attract domestic candidates.
For startups, the impact could be sharper. A young company may not have the cash to spend more than $100,000 on top of salary, legal costs and ordinary filing fees for one employee. The proposal could reduce startups’ ability to recruit specialized founders, engineers, and researchers.
The same concern applies to smaller healthcare providers. Some hospitals and medical practices rely on foreign-trained physicians and specialists, though many may qualify for cap-exempt categories depending on the institution and role.
The policy could also affect U.S. universities. While universities themselves are generally cap-exempt, graduates who want to move from student status into private-sector jobs often rely on the H-1B lottery. A six-figure employer fee could reduce opportunities for international graduates, including people who earned advanced degrees at American institutions.
That outcome could make U.S. universities less attractive to international students, who contribute tuition revenue, research talent and skilled labor to the economy.
The administration may argue that the proposal will encourage employers to invest more in domestic training. Critics say such training is important but cannot immediately replace specialized knowledge in areas such as advanced computing, chip design, medicine, or scientific research.
The public-comment process
The proposal will be open for public comment for 30 days after its publication in the Federal Register.politico+1
During that period, businesses, workers, advocacy groups, academics, and members of the public can submit feedback to DHS.
The agency must review the comments before issuing a final rule. It may change the proposal, narrow its scope, delay implementation, or withdraw it entirely.
If DHS finalizes the rule, it must publish an effective date and explain how the new fee will apply. The agency would also need to address transition questions, including whether the fee applies to petitions already in the lottery process or only to future filing cycles.
For now, the proposal remains only a proposal.
Employers should continue using current USCIS fee schedules unless and until DHS publishes a final regulation. Immigration attorneys and company human-resources departments are likely to monitor the rulemaking closely because the timing could affect recruitment plans for the next H-1B lottery cycle.
What happens next
The H-1B fee proposal is likely to become a major point of conflict in Washington.
Business groups may argue that it threatens the United States’ competitiveness in technology and scientific research. Labor supporters can say the policy protects American workers, or just moves jobs elsewhere. Universities may worry about impacts on international students and research talent.
The outcome will depend on the rulemaking process, potential litigation, and political pressure.
If the $103,265 fee is finalized, it would fundamentally change the economics of the H-1B program. For many employers, hiring a skilled foreign worker would no longer be a matter of paying several thousand dollars in fees and meeting regulatory requirements. It would become a six-figure decision.
For now, the administration has made its intention clear: it wants to make the H-1B program far more expensive for employers seeking new cap-subject workers.
Whether it has the legal authority, and whether the policy will survive public, political and court challenges, remains unresolved.
