The Department of Homeland Security released a proposed rule on Monday that would codify a fee of $103,265 for each H‑1B petition subject to the annual statutory cap. The fee, which the Trump administration first imposed temporarily last year, would become permanent if the rule is finalized.
How the fee would work
The additional charge would apply to all cap‑subject H‑1B petitions, including those eligible for the advanced‑degree exemption that allows 20,000 visas for workers with a U.S. master’s degree or higher. Cap‑exempt petitions—such as those filed by nonprofit research institutions—would not be subject to the fee. Routine extensions for current H‑1B holders, which are generally not capped, would also be excluded.
According to the proposal, the fee is intended to recover the costs incurred across the federal government to adjudicate, vet, and support lawful immigration programs. The Department of Homeland Security says the money would fund actions carried out by DHS, the Department of Justice, the Department of State, and the Department of Labor.
Legal challenges and court activity
The fee was first imposed by presidential proclamation in 2025, but a federal judge blocked it in June, ruling that the charge functioned as an unconstitutional tax. An appeals court is now reviewing that decision, while a separate court case examines whether a challenge by a major business coalition was properly rejected. The temporary fee is set to expire next month, one year after it was issued.
Impact on employers and workers
The H‑1B program allows U.S. employers to hire foreign workers in specialty occupations, with 65,000 visas offered annually under the regular cap and an additional 20,000 for advanced‑degree holders. Prior to the Trump‑era fee, filing costs typically ranged from $2,000 to $5,000. The proposed fee would increase the financial burden on employers dramatically, potentially affecting hiring decisions in the tech, education, and research sectors that rely heavily on H‑1B talent.
According to court filings, about 70 employers paid the $100,000 fee on 85 applications as of late February. Business groups and many U.S. companies argue the program remains essential to fill gaps where qualified American workers are scarce, while the administration contends the program is abused by companies that replace American workers with cheaper foreign labor.
Additional immigration measures
Alongside the fee proposal, the Trump administration has called for stricter vetting of H‑1B applicants and a new visa selection process that would favor higher‑skill, higher‑pay positions. Earlier this month, DHS added fees of up to $4,500 for extensions or transfers of existing H‑1B workers.
Reuters contributed to this report.
Original reporting: Fox News (HLL/CB) — read the source article.
