The Trump administration has proposed a new $103,265 fee for H-1B visa petitions, reviving its push to make companies pay a six-figure amount when hiring foreign skilled workers. Unlike the earlier $100,000 charge introduced through a presidential proclamation, the latest proposal has been put forward through the federal rulemaking process, following a court ruling that blocked the previous approach.
The proposed fee was announced by the US Department of Homeland Security (DHS) on August 24 and is scheduled for publication in the Federal Register. It would apply to H-1B petitions subject to the annual visa cap, including petitions covered by the 20,000-visa advanced-degree exemption, often referred to as the master’s cap. The fee would be paid by the employer when filing the petition and would come on top of existing H-1B charges.
For now, however, the fee is only a proposal and is not in effect. The government has opened a 30-day public comment period before deciding whether to finalise the rule. This means employers, universities, immigration groups and other interested parties can submit their views before any final decision is made.
The proposed change is significant because it could affect foreign professionals who are already living in the United States. Many international students complete their degrees at American universities and initially work under the Optional Practical Training (OPT) programme before seeking H-1B sponsorship. Under the new proposal, an employer sponsoring an eligible worker through the annual H-1B cap could face the $103,265 charge even when that person is already in the country.
That could make the transition from an F-1 student visa to H-1B status considerably more expensive for companies. It could also influence hiring decisions at a time when international graduates already face greater uncertainty over their ability to remain and work in the US after completing their studies.
The proposal follows the Trump administration’s earlier attempt to impose a $100,000 H-1B fee. That charge was introduced in 2025 as a condition linked to the entry of certain new H-1B workers. A federal judge later struck down the measure, finding that the administration had exceeded its authority. The government subsequently sought to pursue the policy through a different route.
The latest proposal is therefore designed differently. Rather than relying on a presidential proclamation tied to entry into the country, DHS is using the formal regulatory process to create a new filing fee. The administration argues that this approach is authorised under existing immigration law and can be used to recover costs associated with the broader US immigration system.
DHS estimates that the proposed fee could generate about $8.8 billion a year if applied to the roughly 85,000 cap-subject H-1B petitions. The department says the money would help cover expenses across the immigration system, including costs beyond the direct processing of H-1B applications.
The proposal also contains important exemptions. Cap-exempt employers, including institutions of higher education, affiliated nonprofit organisations, nonprofit research organisations and certain government research bodies, would not have to pay the new charge. This is particularly relevant to universities, research institutions and healthcare organisations that frequently use the H-1B programme to recruit specialised workers.
The H-1B programme has long been central to the US technology industry, as well as sectors such as finance, healthcare, engineering and research. American companies use it to employ foreign professionals in specialised occupations where they need particular technical or academic skills.
India is likely to feel the impact strongly because Indian professionals account for a large share of H-1B workers, particularly in technology and information technology services. The new fee could make US sponsorship significantly more expensive for companies recruiting Indian engineers, software professionals and other highly skilled workers.
The timing could also matter for Indian students in the US. Students who complete their degrees and gain temporary work authorisation through OPT often view the H-1B lottery as the next major step towards building a longer-term career in America. A six-figure employer fee could make some companies more reluctant to sponsor entry-level international graduates.
The Trump administration has defended tighter restrictions on the programme by arguing that American businesses should give greater priority to hiring and training US workers. Vice President JD Vance backed the proposal, saying companies that need workers should focus on developing domestic talent.
Business groups and immigration advocates, however, are likely to challenge the measure. They argue that making H-1B sponsorship dramatically more expensive could discourage companies from hiring specialised foreign talent and make the US less attractive to international graduates and professionals.
The administration is also considering other changes affecting foreign students, including a possible $100,000 fee connected to the OPT programme. If pursued, that measure could add another financial hurdle for international students trying to build careers in the United States.
Still, the message from Washington is clear: the Trump administration wants to make the H-1B visa system more restrictive and significantly more expensive, particularly for employers using the annual visa cap. For thousands of international students and skilled professionals hoping to work in America, the proposal could make an already competitive path even more uncertain.
