Trump proposes permanent $100,000 fee for H-1B visas
Photo: REUTERS
President Donald Trump’s administration proposed a regulation to establish a permanent fee exceeding $100,000 for H-1B worker visas on Monday.
The new policy seeks to codify this unprecedented charge on highly skilled foreign personnel, which courts have previously stalled. First introduced as a temporary measure last year, this massive cost hike heavily impacts the technology, education, and research sectors.
This development follows a June ruling by a federal judge who declared the fee illegal and prohibited its collection. A Boston-based appeals court reviews that judgment, while a separate court evaluates a challenge from an influential business organization.
The temporary price increase will expire this September, marking exactly one year since its inception. However, the US Department of Homeland Security published a draft rule in the Federal Register on Monday to make the $103,265 fee permanent, which officials could finalize by the end of the year.
H-1B program permits American companies to employ trained specialists from abroad. The government caps these three-to-six-year visas at 65,000 annually, alongside an additional 20,000 slots for candidates holding advanced degrees. Prior to the executive order, employers paid standard fees ranging between only $2,000 and $5,000.
The proposed regulation spares renewals of existing visas and foreign nationals who currently reside in the country on student visas, who traditionally secure a major portion of new H-1B slots.
The visa program continues to spark fierce debate. Trump, a Republican, and fellow critics argue that enterprises exploit the system to swap American personnel with lower-paid foreign staff. On the other hand, trade associations and private enterprises maintain that they desperately need the program to recruit top-tier international talent and fill critical domestic labor shortages.
By late February, court records showed that around 70 employers had paid the six-figure fee for a combined 85 visa applications. To implement the policy, Trump utilized authority under immigration legislation, which allows the executive branch to limit the entry of foreign citizens whose presence might harm national interests.
A powerful coalition - including the US Chamber of Commerce, several Democratic-led states, labor unions, and private employers - has mounted legal challenges against the fee. These plaintiffs plan to amend their lawsuits to contest the newly proposed rule once the administration finalizes it.
The legal complaints argue that the executive authority to block entry does not allow Trump to bypass the statutory laws establishing the H-1B system. Moreover, the coalition and states assert that the Homeland Security Department lacks the constitutional power to levy fees, taxes, or other revenue-generating measures without the express consent of Congress.
In contrast, federal attorneys argue that the charge does not constitute a standard tax and insist that courts possess very limited authority to review Trump decisions on border restrictions.
These policy changes coincide with a wider immigration crackdown. Last year, businesses registered for roughly 344,000 H-1B visas, representing a decline of over 25 percent compared to 2024, and less than half of the 794,000 applications filed in 2023.
Alongside these cost increases, the administration has ordered stricter screening processes for candidates and suggested a revised selection lottery that prioritizes the most skilled and highly compensated workers.
Earlier in August, the Homeland Security Department enacted another regulation adding up to $4,500 in fees to extend existing H-1B stays or to transfer overseas employees to American branches.
Source: Reuters (adapted)
