The Trump administration has proposed a regulation to codify a $103,265 fee on new H-1B visas for skilled foreign workers, making permanent a policy that has faced multiple legal challenges since its introduction last year.
The U.S. Department of Homeland Security unveiled a proposed rule on Monday that would establish a permanent fee of $103,265 on H-1B visa applications for highly skilled foreign workers. The fee represents a dramatic increase from the typical $2,000 to $5,000 cost historically associated with these visas. The proposal follows Trump's issuance of a temporary proclamation last year imposing the same fee, which is set to expire in September.
The H-1B visa program, which allocates 65,000 visas annually plus an additional 20,000 for workers with advanced degrees, is widely used in technology, education, and research sectors. Trump and his supporters argue the program enables companies to replace American workers with cheaper foreign labor, while business groups contend that the visas are essential to address labor shortages for specialized positions. As of late February, approximately 70 employers had paid the proposed fee for around 85 visa applications.
The proposed rule has initiated a 30-day public comment period and could be finalized by year's end. However, it faces significant legal obstacles. A federal judge blocked the original fee in June, ruling it illegal, and multiple lawsuits have been filed by the U.S. Chamber of Commerce, Democratic-led states, and labor-business coalitions. These groups argue that the president's authority to restrict entry does not allow bypassing the law that established the H-1B program, and that Congress alone can authorize revenue-generating fees.
The Trump administration maintains that the fee is not a traditional tax and that courts have limited power to question presidential entry restrictions. Meanwhile, H-1B registrations have declined sharply, with approximately 344,000 applications in the past year—down more than 25% from 2024 and substantially below the 794,000 sought in 2023.
