The Department of Homeland Security (DHS) is proposing to establish a $103,265 fee for all H-1B visas, set to generate $8.8 billion annually to “recover” the federal government’s immigration costs, it announced yesterday.
The proposals follow former plans to establish a $100,000 fee for H-1B petitions, which was struck down by a US district judge in June, who said the President had no authority to impose such a tax.
While the previous policy exempted international students changing status from F-1 to H-1B visas, the latest proposals don’t appear to make any such concessions.
The rule is not yet final, and the public now has 30 days to respond to the proposals, which are likely to draw legal challenges.
“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 in a statement.
The administration has repeatedly argued that the visa – which allows international professionals with a bachelor’s degree or similar to work in “speciality occupations” – is being abused by employers to suppress wages and disadvantage domestic workers.
Vice President JD Vance posted yesterday about the plans on X, stating: “If an American corporation needs workers, it should hire and train Americans.”
But commentators say H-1B boosts American competitiveness, allowing US companies to grow and hire more domestic workers. The stream is capped at 65,000 H-1B visas annually, with another 20,000 reserved for master’s degree-holders from US institutions.
If an American corporation needs workers, it should hire and train Americans
JD Vance, US Vice President
Prior to the administration’s September 2025 attempt to raise the H-1B fee to $100,000, it typically cost US companies between $2,000 and $5,000 to hire an international worker.
The latest attempt is in line with Trump’s broad economic agenda to overhaul work and immigration pathways to the US and follows a rumoured $100,000 fee set to hit America’s post-graduation employment program for international student known as Optional Practical Training (OPT).
It is understood the proposed OPT fee rule was sent to the White House for review on August 20, with the details to be released upon its publication in the Federal Register.
Continued policy uncertainty around OPT and H-1B is one of the primary factors hampering international student interest in the US, particularly among Indian students, whose interest largely relies on the promise of post-graduation work opportunities.
In a recent NAFSA survey of H-1B employers, 63% of cap-subject respondents report that at least half of their initial H-1Bs are on behalf of F-1 students at US universities.
Under the latest proposed rule, the $103,265 fee would not apply to cap exempt petitions such as those filed by nonprofit organisations, government research organisations and higher education institutions.
