Trump administration proposes $103,265 fee on new H-1B worker visas

Proposed fee structure

The United States Department of Homeland Security proposed a formal regulation on Monday, August 24, 2026, to establish a $103,265 fee for new H-1B specialty worker visas. The draft rule appeared in the Federal Register for inspection before its formal publication on August 25, opening a 30-day public comment window. Federal officials project that the regulation could be finalized before the end of the year. The charge applies to petitions subject to the statutory annual limit of 85,000 visas, which encompasses 65,000 general slots and 20,000 allocated to individuals with advanced degrees. Standard processing fees previously ranged from $2,000 to $5,000 per application. The regulation exempts cap-exempt employers, including universities and non-profit or governmental research bodies, as well as existing visa renewals and foreign students already residing in the United States on student visas.

Legal challenges and court history

The administrative filing follows an earlier attempt by President Donald Trump to introduce a $100,000 fee via a presidential proclamation issued in September 2025. That proclamation relied on executive authority under immigration law to restrict the entry of foreign nationals deemed detrimental to domestic interests. In June 2026, U.S. District Judge Leo T. Sorokin in Massachusetts blocked the measure, ruling that the fee constituted an unauthorized tax enacted without congressional authorization. The First Circuit Court of Appeals in Boston denied an administration request to pause the ruling in late July 2026 while reviewing the government appeal. Legal challenges brought by the U.S. Chamber of Commerce, Democratic-led state attorneys general, labor unions, and trade associations remain active in federal courts.

Revenue allocation across federal agencies

The Department of Homeland Security estimates that the new fee structure will raise roughly $8.8 billion annually, splitting the proceeds across six government entities. The Executive Office for Immigration Review, which operates the federal immigration court system, is slated to receive $2.96 billion. Those funds are designated to support the recruitment of over 8,400 personnel, including new immigration judges. U.S. Citizenship and Immigration Services is projected to receive approximately $3 billion to handle application processing, while Immigration and Customs Enforcement is budgeted for roughly $1 billion to fund fraud vetting and foreign student tracking.

Program background and economic debate

The H-1B visa category was established by Congress in 1990 to enable domestic companies to employ foreign specialists for terms lasting between three and six years. Administration officials argue that existing policies encourage corporations to displace domestic talent with lower-paid foreign staff. The proposed rule cites a working paper from the National Bureau of Economic Research showing that H-1B recipients earned an average of 15 percent less than their domestic peers. Opposing business organizations argue that the visa program is essential for filling technical vacancies in science, education, and technology fields where domestic candidate shortages persist. Prior to the court injunction, about 70 employers paid the earlier $100,000 fee on 85 individual visa petitions by late February 2026.