The administration of President Donald Trump released a proposed regulation to codify an unprecedented fee of $103,265 for new H-1B visas, according to a government notice posted in the Federal Register. The measure follows an earlier temporary proclamation issued by the president last year that imposed a $100,000 fee on new H-1B visas for highly skilled foreign workers, a policy that faced significant legal hurdles and court challenges.
Trump Administration Proposes Permanent $103,265 Fee for H-1B Visas
According to the Department of Homeland Security, the proposed $103,265 fee would act as a dedicated revenue mechanism intended to recoup the administrative costs of managing the lawful immigration system, including agencies such as U.S. Citizenship and Immigration Services, Customs and Border Protection, and Immigration and Customs Enforcement. The newly proposed rule initiated a 30-day public comment period following its online posting on Monday and formal publication on Tuesday, with the regulation potentially finalized by the end of the year.
Legal Battles and Existing Court Challenges
The push to make the high-skilled visa fee permanent comes while the original temporary order remains embroiled in federal court battles. A federal judge in June ruled that the initial fee was illegal and blocked the administration from collecting it. While a Boston-based appeals court is reviewing that decision, another court is weighing whether a judge properly rejected a separate challenge brought by a major business group.
The initial fee has faced widespread opposition from the U.S. Chamber of Commerce, Democratic-led states, and a coalition of labor unions and employers. Plaintiffs in these lawsuits argue that the Department of Homeland Security lacks the authority to impose taxes or revenue-generating fees without congressional approval, and that the president’s power to restrict entry does not override the statutory framework governing the H-1B program. In contrast, the administration has maintained that the fee is not a traditional tax and that courts possess limited authority to question executive power regarding foreign national entry restrictions.
Program Impact and Broader Immigration Policies
The H-1B program historically offers 65,000 visas annually, with an additional 20,000 allocated for workers holding advanced degrees, approved for durations of three to six years. Prior to the administration’s actions, these visas typically carried fees ranging between $2,000 and $5,000. Under the newly proposed framework, the $103,265 cost would apply to new cap-subject petitions while exempting foreign citizens already residing in the United States on student visas and applicants seeking visa renewals.
Administration officials contend that the program has been exploited to replace American workers with cheaper foreign labor, asserting that the substantial financial penalty will create an indirect incentive for employers to hire qualified domestic professionals. Conversely, business groups and companies across the tech, education, and research sectors argue that the visa program is vital for recruiting top talent and filling roles that lack qualified domestic candidates. Court filings indicate that roughly 70 employers had paid the $100,000 fee on a total of 85 visa applications as of late February.
Data from U.S. Citizenship and Immigration Services demonstrates a sharp decline in overall demand amid broader administration immigration crackdowns, with employers registering for approximately 344,000 H-1B visas last year—down more than 25% from 2024 and less than half of the 794,000 visas sought in 2023. Alongside the proposed permanent fee, the Department of Homeland Security has instituted enhanced vetting procedures and introduced separate rules adding fees of up to $4,500 for extension and transfer applications.
