The Trump administration unveiled a sweeping proposal Monday to charge companies more than $103,000 for each new H-1B visa petition — a dramatic escalation in the White House’s push to prioritize American workers over cheaper foreign labor.
The Department of Homeland Security’s proposed rule would make the $103,265 fee permanent for every cap-subject H-1B petition, including those eligible for the advanced-degree exemption. The charge replaces a temporary fee first imposed last year that was blocked by a federal judge in June.
The worker visas are heavily relied on in the tech, education, and research industries.
“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.”
U.S. Citizenship and Immigration Services spokesperson Zach Kahler said the fee would cover federal government costs of administering the legal immigration system — including actions carried out by DHS, the Department of Justice, Department of State, and Department of Labor.
The H-1B program allows U.S. employers to hire foreign workers with training in specialty occupations. 65,000 visas are offered annually under the regular cap, with another 20,000 for workers holding a master’s degree or higher from a U.S. institution. Those visas typically came with fees between $2,000 and $5,000 before Trump’s order last year.
President Trump has argued the H-1B program is abused by many companies who replace American workers with cheaper foreign labor. But business groups and many U.S. companies have contended the program is needed to address a lack of qualified American workers for certain jobs and to allow American firms to bring in the most skilled workers to support the U.S. economy.
The proposed fee would apply to all cap-subject H-1B petitions, including petitions filed for some foreign students already in the United States seeking to change to H-1B status. It would not apply to cap-exempt H-1B petitions — routine extensions for current H-1B holders generally are not subject to the annual cap.
The temporary fee increase expires next month, one year after it was issued. The proposed rule by DHS was posted for public inspection Monday and is scheduled to be published in the Federal Register on Tuesday. The charge could be finalized by the end of the year.
According to court filings, about 70 employers had paid the $100,000 fee on a total of 85 visa applications as of late February — before a federal judge in Boston blocked the Trump administration’s original charge, ruling it an unauthorized tax without congressional approval.
An appeals court is reviewing the judge’s decision while a different court considers whether a challenge to the fee by a major business group was properly rejected.
The fee is being challenged by the U.S. Chamber of Commerce, Democratic-led states, and a coalition of labor unions and employers. Those complaints could be altered to challenge the rule proposed this week once it is finalized.
The Trump administration has also ordered increased vetting of H-1B applicants and proposed a new visa selection process that would favor higher-skilled and better-paid workers. Earlier this month, DHS added fees of up to $4,500 to applications to extend the stay of H-1B workers or to transfer employees based in other countries to the U.S.
