US Moves to Make $103,265 H-1B Visa Fee Permanent, Indians Brace for Big Impact

The Trump administration has proposed making a $103,265 fee for new H-1B visas permanent, a dramatic increase that could significantly impact Indian professionals, who account for over 70% of H-1B beneficiaries.

The Trump administration has proposed a regulation to make a more than $100,000 fee for new H-1B visas permanent, a move that could dramatically increase the cost for US employers hiring skilled foreign workers. The US Department of Homeland Security has proposed setting the fee at $103,265, which would be paid on top of all other existing charges.

"The proposed H-1B fee is intended to recover the costs incurred across the federal government to adjudicate, vet, and support lawful immigration programs that otherwise must be funded by taxpayers," said USCIS spokesperson Zach Kahler.

The proposal, posted in the Federal Register on Monday, would formalize a controversial $100,000 fee that President Trump first imposed last year through a presidential proclamation. That proclamation is due to expire in September, but the new rule would make the fee permanent.

The Fee Breakdown

DHS calculated the $103,265 figure by dividing an estimated $8.78 billion in costs across six federal agencies by a projected 85,000 annual H-1B cap-subject petitions. The revenue would be distributed among USCIS, the Justice Department's immigration courts, the Department of Labor, ICE, the State Department, and CBP. The agency argues that employers sponsoring H-1B workers, who have median annual wages of $133,000, can absorb the cost.

Legal Battle and Uncertainty

The proposed fee comes after a federal judge in Boston struck down the earlier $100,000 fee in June, ruling it was an unlawful tax that Congress never authorized. An appeals court has since rejected the administration's bid to stay that ruling. The DHS said it disagrees with the ruling but will comply while considering next steps. The new proposal could face fresh legal challenges once finalised.

Who Would Be Affected

The fee would apply to new H-1B cap-subject petitions, including those filed under the regular 65,000 cap and the 20,000 master's cap. It would not apply to cap-exempt petitions, such as those filed by universities and nonprofit research organizations. Importantly, it would not apply to foreign nationals already in the US on student visas who transition to H-1B status, or to renewals of existing visas. The impact on Indian professionals could be significant. In fiscal year 2024, Indian-born beneficiaries accounted for 71 per cent of 399,402 approved H-1B petitions.

"We want to build towards a world where everything has cost parity with trucking," said founder and CEO Naman Pushp.

Before Trump's earlier order, H-1B-related fees typically ranged between $2,000 and $5,000. The proposed $103,265 charge would be a steep increase. The proposal will now undergo a 30-day public comment period and could be finalised by the end of the year.

Here is the question this proposal raises. The Trump administration is moving to make a $103,265 H-1B fee permanent, a cost that would be stacked on top of existing fees. When the cost of hiring a skilled foreign worker jumps from thousands to over a hundred thousand dollars, what does it mean for US employers, the tech industry, and the Indian professionals who have long relied on this pathway?

FAQ:

Q: What is the proposed H-1B visa fee hike?
A: The US Department of Homeland Security has proposed a new $103,265 fee for H-1B cap-subject petitions, which would be paid on top of all other existing fees.

Q: Why is the Trump administration proposing this H-1B fee hike?
A: The administration says the fee is needed to recover the costs of administering the immigration system across multiple federal agencies, including USCIS, the Justice Department, and the Department of Labor.

Q: How would the H-1B fee hike affect Indian professionals?
A: Indian professionals are likely to be most affected, as they accounted for 71% of H-1B beneficiaries in fiscal year 2024.

Q: Does the H-1B fee hike apply to renewals or student visa transitions?
A: No, the proposed fee would not apply to H-1B renewals or to foreign nationals already in the US on student visas who later transition to H-1B status.

Q: What is the legal status of the H-1B fee hike?
A: The proposal is a new rule that will undergo a 30-day public comment period and could be finalised by the end of the year. It is legally distinct from the earlier $100,000 fee imposed by presidential proclamation, which was blocked by a federal court.