H-1B Visa Fee: Trump Administration Proposes Making USD 1,03,265 Charge Permanent
The Trump administration has proposed making an USD 103,265 fee on new H-1B visas permanent, despite a federal judge ruling the charge illegal and blocking its collection. The US Department of Homeland Security proposal comes as businesses, states and unions challenge the fee in court. The charge would not apply to certain students already in the US or visa renewals.
The Donald Trump administration on Monday proposed a regulation that would make permanent an USD 1,03,265 fee on new H-1B visas for highly skilled foreign workers, despite the charge being blocked by a federal court. The proposed rule from the US Department of Homeland Security would codify the fee introduced temporarily by Trump last year.
The proposal comes as legal challenges over the fee continue. A federal judge in June ruled that the charge was illegal and blocked the administration from collecting it, Reuters reported. A Boston-based appeals court is reviewing that decision, while another court is considering a separate challenge brought by a major business group. H-1B Visas Could Be Paused for 3 Years Under New US Bill; What It Means for Indians Professionals.
Proposed H-1B Fee Could Become Permanent
Trump's temporary fee increase is due to expire in September, one year after it was introduced. The proposed regulation, posted in the Federal Register on Monday, would make the USD 1,03,265 fee permanent. The rule could be finalized by the end of the year. Before Trump's order, H-1B visas typically carried fees ranging between USD 2,000 and USD 5,000.
The proposed fee would apply to new H-1B visas but would not cover visas granted to foreign citizens already in the United States on student visas, who account for a large share of new H-1B recipients. It would also not apply to renewals of existing visas.
How The H-1B Programme Works
The H-1B programme allows US employers to hire foreign workers with specialised training in fields such as technology, education and research. The programme provides 65,000 visas annually, along with another 20,000 for workers with advanced degrees. H-1B visas are generally approved for periods of three to six years.
The sharp increase in the cost of obtaining a new visa has become a major point of contention between the administration and businesses that rely on the programme. About 70 employers had paid the USD 1,00,000 fee on a total of 85 visa applications as of late February, according to court filings.
Debate Over H-1B Visa Programme
Trump and other critics of the H-1B programme argue that some companies use the system to replace American workers with cheaper foreign labour.
Business groups and many companies, however, say the programme is necessary because some industries face shortages of qualified American workers. They also argue that it allows US businesses to recruit highly skilled talent from overseas.
The proposed permanent fee is therefore likely to remain a point of contention between the administration, employers and immigration advocates.
Legal Challenges Mount
The USD 103,265 fee is being challenged by the US Chamber of Commerce, Democratic-led states and a coalition of unions and employers. The lawsuits argue that the president's authority to restrict entry into the United States does not allow him to override the law establishing the H-1B programme.
The states and other groups also contend that the Department of Homeland Security cannot impose fees, taxes or other revenue-generating charges without congressional authorisation. The Trump administration has maintained that the charge is not a traditional tax and that courts have limited authority to question the president's power to restrict entry into the country. The existing lawsuits could be amended to challenge the new regulation if it is formally finalised.
H-1B Demand Falls Amid Immigration Crackdown
The proposed fee comes amid the Trump administration's broader immigration crackdown. Employers registered for about 3,44,000 H-1B visas last year, down more than 25% from 2024 and less than half the 7,94,000 visas sought in 2023, according to US Citizenship and Immigration Services data.
The administration has also ordered enhanced vetting of H-1B applicants and proposed a new visa selection process that would favour higher-skilled and better-paid workers. Earlier in August, the Department of Homeland Security separately proposed fees of up to USD 4,500 for applications to extend the stay of H-1B workers or transfer employees based in other countries to the United States.
(The above story first appeared on LatestLY on Aug 24, 2026 09:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
