Trump Administration Proposes Permanent $103,265 Fee for H-1B Visas

The Trump administration released a proposed regulation on Monday to codify a permanent fee of $103,265 for new H-1B visas for highly skilled foreign workers. This fee was first temporarily imposed last year but was blocked by a federal judge in June who ruled the charge illegal. A Boston based appeals court is currently reviewing that decision. The temporary fee is set to expire in September, and the new rule proposed by the Department of Homeland Security could be finalized by the end of the year.

The H-1B program typically provides 65,000 annual visas, with an additional 20,000 for advanced degree holders, for terms of three to six years. Before the Trump administration's order, these visas generally cost between $2,000 and $5,000. While the initial temporary order excluded renewals and foreign citizens already in the U.S. on student visas, the proposed permanent rule appears to include them.

Critics of the program, including President Trump, argue that companies abuse the H-1B system to replace American workers with cheaper foreign labor. Conversely, business groups and various companies maintain that the program is essential to recruit top talent and address a shortage of qualified American workers. Court filings indicate that approximately 70 employers had paid the fee for 85 visa applications as of late February.

Legal challenges to the fee have been brought by Democratic led states, the U.S. Chamber of Commerce, and a coalition of unions and employers. These lawsuits argue that the president cannot override the law creating the H-1B program and that the Department of Homeland Security cannot generate revenue without congressional permission. The administration contends that the fee is not a traditional tax and that the president has the authority to restrict entry of foreign nationals detrimental to U.S. interests.

This move is part of a broader immigration crackdown. Data from U.S. Citizenship and Immigration Services shows that employers registered for about 344,000 H-1B visas last year, a decrease of more than 25 percent from 2024 and less than half of the 794,000 sought in 2023. Additionally, the administration has ordered enhanced vetting and proposed a selection process favoring higher paid and higher skilled workers. In August, the Department of Homeland Security also added fees of up to $4,500 for visa extensions or transfers.