US rule proposes $103,265 H-1B visa fee, impacting Indian workers most
The Trump administration has formally proposed a regulation to make permanent a fee of $103,265 on new H-1B visas for highly skilled foreign workers. The rule, published in the Federal Register on August 24, follows a temporary fee introduced in 2025 that was later blocked by a federal court. If finalised, the fee would replace the earlier range of $2,000 to $5,000 that employers typically paid for such visas.
The H-1B programme allows US employers to hire foreign workers in specialty occupations. It issues 65,000 visas annually, with an additional 20,000 for those with advanced degrees. The proposed fee applies to new visas but not to renewals or to applicants already in the United States on student visas, who form a large share of new H-1B recipients. The fee also does not apply to immigrant petitions filed for current visa holders.
The Department of Homeland Security, which posted the rule, says the higher fee is intended to protect American workers while still allowing companies to recruit “truly extraordinary people” from abroad. Critics of the H-1B programme have argued that some employers misuse it to replace US workers with cheaper foreign labour. Business groups and many companies, however, say the visa is essential to fill gaps in the domestic labour market and to attract global talent.
Indian professionals are the largest beneficiaries of the H-1B visa, representing 71% of all recipients in fiscal year 2024. According to The Hindu’s earlier reporting, a $100,000 surcharge would match or exceed the annual salaries of many Indian H-1B workers, as they typically earn lower median wages than peers from other countries. This makes the fee hike particularly burdensome for Indian technology employees, both in absolute numbers and as a share of the workforce.
The fee increase already faces legal challenges. The US Chamber of Commerce, several Democratic-led states, and a coalition of unions and employers have filed suits. In June 2026, a federal judge ruled the temporary fee unlawful and blocked its collection. That decision is now under appeal in a Boston-based court, while another court is reviewing a separate challenge by a business group. The proposed rule may be amended to include additional legal claims once it is finalised.
Data from US Citizenship and Immigration Services show that employer registrations for H-1B visas fell to about 344,000 in the last fiscal year, a drop of more than 25% from 2024 and less than half of the 794,000 sought in 2023. The Trump administration has also introduced enhanced vetting for H-1B applicants and proposed a new selection process that would prioritise higher-paid and more skilled workers. A separate rule added fees of up to $4,500 for applications to extend H-1B stays or transfer employees from abroad to the United States.
For Indian professionals and students aiming to work in the US, the proposed fee adds further uncertainty to an already restrictive immigration environment. The rule is open for public comment before it can be finalised, possibly by the end of the year. Legal experts say the outcome of the ongoing court battles will be crucial in determining whether the fee takes effect.
