Trump administration proposes an additional $103,265 fee on H-1B cap-subject petitions; DHS estimates annual revenue of nearly $8.8 billion
Washington : The Trump administration has proposed another major increase in fees for new H-1B visas, with the US Department of Homeland Security (DHS) proposing an additional fee of $103,265 on H-1B cap-subject petitions.
The proposed fee would be payable at the time the petition is filed and would be in addition to all other applicable fees and payments.
DHS estimates $8.8 billion in annual revenue
According to the DHS, the proposed additional fee could generate approximately $8.8 billion annually, based on an estimated 85,000 H-1B cap-subject petitions.
The department said the revenue would help recover federal government costs associated with administering and supporting legal immigration programmes.
Why is the US proposing the new fee?
US Citizenship and Immigration Services (USCIS) spokesperson Jack Kahler said the proposed fee is intended to recover federal government expenses related to the administration and oversight of legal immigration programmes.
According to DHS, the revenue could help cover costs associated with:
- Adjudicating immigration benefits
- Fraud detection and national security screening
- Modernising immigration systems
- Records management and fee collection
- Immigration court operations
- Consular visa processing
- Labour standards enforcement
- Inter-agency coordination
Which H-1B petitions would be affected?
The proposed additional fee would apply to H-1B cap-subject petitions, including petitions eligible for the advanced-degree exemption.
The additional fee would not apply to H-1B petitions that are not subject to the annual cap.
These include certain petitions filed by:
- Higher education institutions
- Non-profit research organisations
- Government research organisations
H-1B annual cap remains at 85,000
The annual statutory limit for new H-1B visas is 85,000, consisting of:
- 65,000 visas under the regular H-1B cap
- 20,000 visas for applicants holding a master’s degree or higher from a US institution of higher education
Of the regular 65,000 allocation, 6,800 visas are reserved for nationals of Chile and Singapore under the applicable US trade agreements.
Potential impact on technology companies
The H-1B programme allows US employers to hire foreign professionals for specialised and highly skilled positions. The programme is particularly important to the technology, engineering, software, healthcare and other specialised sectors.
If implemented, the proposed $103,265 additional charge could substantially increase the cost for companies seeking to sponsor new H-1B workers.
New proposal follows earlier $100,000 fee controversy
The latest proposal comes after the Trump administration previously introduced a $100,000 H-1B fee proposal, which faced legal challenges.
A federal judge subsequently ruled against the earlier proposal, with the court questioning the authority to impose such a charge through the administration’s immigration policy.
The new DHS proposal represents a fresh attempt to impose a significant additional charge on certain H-1B petitions.
30-day public comment period expected
Once the proposed rule is published in the Federal Register, companies, employers, workers and other stakeholders are expected to receive a 30-day period to submit comments.
The final rules, including the effective date and exact scope of the fee, would be determined after the regulatory process and review of public comments.
Why it matters for Indian IT professionals
The H-1B programme has long been particularly important for Indian technology professionals and IT services companies operating in the United States.
A substantial increase in H-1B costs could influence recruitment strategies, employee sponsorship decisions and the broader India-US technology services ecosystem.
However, it is important to note that the $103,265 amount is currently a proposed additional fee and should not yet be treated as a final applicable charge. The final amount, exemptions and implementation date will depend on the outcome of the US regulatory process.
