US proposes permanent $103,265 fee for H-1B skilled worker visas

Proposed regulation expands fee scope

The Department of Homeland Security published a proposed regulation on August 24 to establish a permanent fee of $103,265 for new H-1B visas. Standard government fees for the program have historically ranged between $2,000 and $5,000 per applicant. The new measure builds upon an initial $100,000 fee imposed by presidential proclamation in September, which was set to expire next month. While the earlier fee targeted workers recruited directly from abroad, the proposed rule covers all petitions subject to the annual statutory cap. This change directly affects companies hiring international graduates and foreign professionals already residing in the United States.

Ongoing battles in federal courts

The regulatory proposal follows a series of courtroom setbacks for the administration's immigration policy. On June 8, a federal district judge in Boston ruled that the initial $100,000 fee constituted an unlawful tax that Congress had never authorized, blocking the government from collecting it. Prior to that court injunction, more than 70 employers had already paid the $100,000 fee. In July, a federal appeals court declined to suspend the lower court's decision, and the Boston-based appellate court continues to review the case. Additional legal challenges remain pending from the U.S. Chamber of Commerce, Democratic-led state attorneys general, labor unions, and business coalitions.

Corporate impact and industry response

The H-1B visa program, established by Congress in 1990, caps standard allocations at 85,000 visas annually, including 20,000 reserved for workers holding advanced degrees. U.S. Citizenship and Immigration Services received more than 211,000 lottery registrations for those spots this year. Top visa users include technology firms such as Amazon, Meta, and Microsoft, alongside consultancy groups such as Deloitte, PwC, Ernst & Young, Tata Consultancy Services, and Infosys. Indian tech trade association Nasscom stated that Indian IT firms have reduced their H-1B worker headcount over the past five years by hiring more local staff in the U.S. Nasscom also reported that member firms invested more than $1.1 billion into American science, technology, engineering, and math educational partnerships and upskilling programs.

Broader pressure on student work pathways

Business organizations and immigration advocates contend that the fee structure aims to dismantle legal pathways for international professionals. The Department of Homeland Security has also indicated that it may propose a $100,000 fee for the Optional Practical Training program, which allows international graduates to work in the United States for up to three years in technical disciplines. Beyond the technology sector, earlier fee increases produced staffing shortages in rural hospitals and Alaska public school districts that rely on foreign professionals. Todd Schulte, president of the immigration reform organization FWD.us, addressed the intent of the regulatory changes:

This is clearly unlawful. We don't have to guess what this is for. This is to get rid of the OPT and H-1B program, which will have upstream and downstream devastating consequences: companies will be started elsewhere, people will be hired elsewhere.

Former U.S. Citizenship and Immigration Services official Doug Rand also evaluated the potential reach of the published rule:

It's much bigger in scope. This regulation, if enacted, would have catastrophic effects on America's global talent pipeline.