The Trump administration has released a proposed regulation that would increase the application fee for H‑1B visas to $103,265. The draft rule, posted on Monday, states the fee is intended to “recover” the costs of operating the immigration system and to incentivize employers to hire American workers and pay them higher wages.
Background on the H‑1B program
H‑1B visas allow foreign professionals with specialized skills to work in the United States for up to three years, with the possibility of a three‑year extension. Applicants must hold at least a bachelor’s degree or an equivalent qualification. Each fiscal year, U.S. law caps the program at 65,000 visas, with an additional 20,000 set aside for individuals who have earned advanced degrees from American universities.
Previous attempts to raise the fee
In September 2025, President Donald Trump signed an executive action that would have imposed a $100,000 fee on H‑1B petitions, up from the prior $3,000 charge. That effort was halted in June 2026 when U.S. District Judge Leo Sorokin in Boston ruled the fee unconstitutional, finding that only Congress has the authority to levy such a tax on immigration applications.
Judge Sorokin, an appointee of former President Barack Obama, wrote that the President “had no power or delegated authority to impose a tax on H‑1B petitions.” The decision underscored the legal limits on executive action in immigration policy.
Current proposal and public comment period
The new proposal, while not yet final, seeks to reintroduce a substantial fee—now set at $103,265. The administration says the revenue would help fund the immigration system and serve as a deterrent to companies that might otherwise rely on foreign labor instead of training U.S. citizens.
Members of the public have 30 days to submit comments on the proposed rule. The administration acknowledges that the rule could face additional legal challenges and that the final rule‑making process may take several months.
Political reactions
Vice President JD Vance promoted the proposal on the social platform X, stating, “If an American corporation needs workers, it should hire and train Americans.” The administration continues to argue that the H‑1B program is overused and that the fee will help protect American jobs.
Economists, however, contend that the H‑1B program supports U.S. competitiveness by allowing companies to fill highly specialized positions that are difficult to staff domestically. They argue that the program can create additional jobs and foster business growth.
Potential impact on employers and workers
If implemented, the fee would represent a significant financial burden for employers seeking H‑1B talent. Companies would need to weigh the cost against the benefits of hiring foreign specialists, potentially shifting hiring practices toward domestic candidates.
Critics warn that the steep fee could discourage smaller businesses from accessing the program, limiting their ability to compete for skilled labor. Larger corporations may absorb the cost more easily, but the overall effect on the labor market remains uncertain.
Next steps
The proposed regulation will undergo a notice-and-comment period, after which the administration may revise the fee or its justification based on feedback. Should the rule be finalized, it could face renewed judicial scrutiny, given the prior court decision that blocked a similar fee.
Stakeholders—including businesses, immigration attorneys, and advocacy groups—are expected to monitor the process closely and submit their perspectives during the comment window.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
