Trump administration revives $103,265 H-1B visa fee with new rule

The Trump administration on Monday released a proposed regulation that would impose a fee of $103,265 on new H-1B visas for highly skilled foreign workers, reviving a measure that was blocked by a federal court earlier this year.

The fee was first introduced last year through a presidential proclamation, but a federal judge in June ruled it illegal and prevented its collection. The Boston-based appeals court is currently reviewing that decision, while another court is examining a separate challenge to the fee.

The proposed rule, published by the Department of Homeland Security in the Federal Register on Monday, will be formally published on Tuesday, starting a 30-day public comment period. The rule could be finalised by the end of the year.

The H-1B programme allows US employers to hire foreign workers in specialty fields, offering 65,000 visas annually and 20,000 more for advanced-degree holders. The typical fees for these visas had been around $2,000 to $5,000. The new fee, if implemented, would significantly increase the cost for employers.

The H-1B programme has long been debated. Critics, including President Donald Trump, argue that some companies misuse the visa to replace American workers with cheaper foreign labour. Business groups and many companies counter that the programme addresses a shortage of qualified US workers and allows firms to recruit top international talent.

According to court filings, about 70 employers had paid the $100,000 fee on 85 visa applications as of late February. The administration invoked its authority under federal immigration law to restrict entry of foreign nationals who could be detrimental to US interests.

The fee is being challenged by the US Chamber of Commerce, Democratic-led states, and a coalition of unions and employers. They argue that the president's power to restrict entry does not override the law that created the H-1B programme, and that the Department of Homeland Security cannot impose fees without congressional approval. The administration maintains that the fee is not a tax and that courts have limited power to question presidential authority over entry restrictions.

In the context of the administration's broader immigration crackdown, the number of H-1B visa registrations has fallen sharply. Employer registrations for 2025 stood at about 344,000, down more than 25% from 2024 and fewer than half of the 794,000 in 2023, according to data from US Citizenship and Immigration Services.

In addition to the proposed fee, the administration has mandated enhanced vetting of H-1B applicants and proposed a new visa selection process favouring higher-skilled, better-paid workers. In a separate rule earlier this month, the Department of Homeland Security added fees of up to $4,500 for extending H-1B workers' stays or transferring employees from other countries to the US.

The proposed rule is now open for public comments. Any final rule is likely to face further litigation from the parties already challenging the fee. The outcome will affect thousands of employers and foreign workers relying on the H-1B programme.