The Trump administration on Monday proposed a permanent $103,265 fee on new H 1B visas, seeking to codify a measure President Donald Trump introduced last year despite a federal court ruling that blocked its enforcement.
The proposed rule from the U.S. Department of Homeland Security would significantly increase the cost of hiring highly skilled foreign workers under the H 1B programme, which is widely used by technology companies, universities and research institutions.
A federal judge ruled in June that the fee was unlawful and barred the administration from collecting it. Appeals courts are reviewing that decision, while separate legal challenges have also been brought by business groups, Democratic led states, unions and employers.
The proposed regulation is set to undergo a 30 day public comment period and could be finalised by the end of 2026.
The H 1B programme currently provides 65,000 visas annually, plus another 20,000 for foreign workers with advanced U.S. degrees. Visas are generally issued for three to six years.
Trump and other critics argue that companies have abused the programme by using foreign workers as cheaper alternatives to American employees. Business groups, however, say H 1B visas are essential for filling shortages of qualified workers and attracting highly skilled talent.
The proposed fee would be dramatically higher than the traditional H 1B costs, which have generally ranged from about $2,000 to $5,000 depending on the circumstances of an application.
The administration argues that the president has authority under federal immigration law to restrict the entry of foreign nationals considered detrimental to U.S. interests. Opponents say that authority does not allow the administration to override the law establishing the H 1B programme or impose revenue generating fees without congressional approval.
The proposed rule comes as the Trump administration continues a broader tightening of immigration policies. Employer registrations for H 1B visas fell to about 344,000 last year, more than 25% below 2024 levels and less than half the 794,000 registrations recorded in 2023.
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