The US Department of Homeland Security (DHS) has proposed a new fee of $103,265 for H-1B visa petitions subject to the annual statutory cap, including those filed for workers with master’s degrees, according to a draft rule published Monday. The proposed fee replaces an earlier $100,000 entry fee proclamation by President Donald Trump, which was struck down by a federal judge, and would apply to all cap-subject H-1B petitions, not just those hired from outside the country.

Key Takeaways

• DHS has proposed a $103,265 fee for each cap-subject H-1B petition, replacing the earlier $100,000 entry fee that was vacated by a federal judge in Boston and remains under appeal.
• The new fee would apply to all H-1B petitions subject to the annual cap, including those for advanced degree holders, and would be paid on top of any other fee mandates, including the proclamation if it is revived by the courts.
• Universities, hospitals, and research-based institutions would be spared under the new proposal, unlike under the initial proclamation.
• DHS projects the fee would generate $8.8 billion annually, with two-thirds of revenue going to US Citizenship and Immigration Services and the Executive Office for Immigration Review.
• The US Chamber of Commerce, which led one of the legal challenges to the earlier proclamation, said the new fee would make it cost-prohibitive for start-ups and small to midsize employers to use the H-1B program.

Background: From Proclamation to Regulation

The new fee marks a departure from the previous approach. In a proclamation issued last year, President Trump imposed a $100,000 entry fee on H-1B visa holders hired from outside the country. That proclamation, based on presidential authority to restrict entry to the US, stunned employers and disrupted hiring plans for many businesses. It did not apply to recent college graduates or others already in the US who had been approved for H-1B status.

A federal judge in Boston later vacated the entry fee, ruling that it imposed an unlawful tax without delegation from Congress. The Trump administration appealed that decision, but its emergency bid to block the ruling was denied last month by the US Court of Appeals for the First Circuit.

New Proposal Details

The proposed fee, published in a draft rule, would apply to all petitions for H-1B workers subject to the annual statutory cap of 85,000 visas per year, with 20,000 reserved for advanced degree holders. Unlike the earlier proclamation, which also applied to universities, hospitals, and research-based institutions, those employers would be spared under the new proposal.

DHS said the fee would be paid on top of any other fee mandates for H-1B workers, including the proclamation if it is revived by the courts. The agency said the new fee would address costs of overseeing the US immigration system at DHS, as well as the departments of Labor, State, and Justice. The fee would fund adjudication of benefits, fraud detection, national security vetting, and systems modernization.

According to the proposal, US Citizenship and Immigration Services and the Executive Office for Immigration Review, which houses immigration courts, would be allocated two-thirds of revenue generated by the fee. DHS projects the fee would generate $8.8 billion annually.

Reactions from Business Groups

The US Chamber of Commerce, which led one of multiple legal challenges filed last year in response to the White House proclamation, criticized the new proposal. Neil Bradley, executive vice president and chief policy officer at the Chamber, said the new fee will make it cost-prohibitive for even more US employers—especially start-ups and small and midsize businesses—to utilize the H-1B program. Bradley added that the program helps companies expand, innovate, and create jobs across their operations.

“The new fee proposal will make it cost-prohibitive for even more US employers—especially start-ups and small and midsize businesses—to utilize the H-1B program.” — Neil Bradley, US Chamber of Commerce

Other Fee Considerations

DHS said it weighed hiking fees for all immigration applications and petitions, but determined that would burden individuals and petitions not connected to employment in the US. The agency is also reportedly weighing a plan to add a $100,000 charge for participation in Optional Practical Training, a post-graduate employment program for foreign students on F-1 visas.

Why It Matters

The H-1B program is popular with employers in technology and engineering fields, and demand has historically greatly outweighed limited availability. The proposed fee, if implemented, could significantly raise the cost of hiring cap-subject workers, potentially deterring employers from using the program. According to a DHS spokesperson, Zach Kahler, the proposed H-1B fee is intended to recover costs incurred across the federal government for adjudication, vetting, and support of lawful immigration programs that otherwise must be funded by taxpayers.

The new fee would apply to all cap-subject petitions, including those for master’s degree holders, and would be in addition to any other fees. For a program that already faces high demand—85,000 slots per year, with 20,000 reserved for advanced degree holders—the added cost could make it harder for startups and smaller companies to compete for talent.

For more information on the H-1B program, visit the US Citizenship and Immigration Services website.

What Happens Next

The draft rule is now open for public comment, and DHS has not announced a timeline for finalizing it. The earlier proclamation remains under appeal, and the new fee could be subject to legal challenges once finalized. Employers who rely on the H-1B program will be watching closely as the rule moves through the regulatory process.