Trump administration proposes over $103,000 H-1B visa fee as court challenges continue

The Trump administration is considering a major overhaul of US immigration costs and rules, with proposed changes that could significantly increase expenses for H-1B visa holders, F-1 students using Optional Practical Training (OPT), and American employers hiring skilled foreign workers.According to a notice published in the Federal Register on Monday, the US Department of Homeland Security (DHS) is proposing to raise the H-1B visa fee to $103,265. The proposed changes could have a particularly significant impact on Indians, who make up the largest share of H-1B beneficiaries. In 2024, the US Citizenship and Immigration Services approved 399,402 H-1B petitions, with Indian-born beneficiaries accounting for about 71 per cent of them.US Appeals Court Rejects Trump Bid To Reinstate $100,000 H-1B Visa FeeUS May Scrap 60-Day Grace Period For H-1B WorkersThe proposed fee hike comes alongside another immigration policy change being considered by the DHS. Earlier this month, the department proposed ending the 60-day grace period currently available to certain H-1B workers after their employment ends.Under the existing system, eligible H-1B workers generally have up to 60 days to find another job, change their immigration status or make other arrangements before having to leave the US. If the proposed regulation is finalised, that protection could be removed in certain cases, potentially requiring affected workers and their dependants to leave the country much sooner.The proposed changes could therefore create additional uncertainty for foreign professionals and their families whose legal status depends on their employment.'American Jobs Should Go To American Workers': JD Vance Warns Of H-1B Visa Fraud As Trump Administration Launches Major ProbeWhat is an H-1B visa?The H-1B is a US non-immigrant work visa that allows American employers to hire foreign professionals for specialised jobs requiring specialised knowledge, such as roles in technology, engineering, healthcare and finance. It is particularly important for highly skilled workers from countries including India.

President Donald Trump’s administration on Monday released a proposed regulation to codify an unprecedented more than $100,000 fee on new H-1B visas for highly skilled foreign workers, that Trump first imposed last year but has been blocked by the courts. The fee first imposed by Trump in a temporary proclamation last year vastly raises the cost of the visas that are heavily relied on in the tech, education and research sectors. A federal judge in June ruled that the fee was illegal and blocked the Trump administration from collecting it. A Boston-based appeals court is reviewing that decision while a different court considers whether a judge in Washington, DC, properly rejected a challenge to the fee by a major business group. Trump’s 2025 proclamation imposing the fee expires in September, one year after it was issued, but directed the US Department of Homeland Security to adopt regulations making it permanent. The proposed $103,265 fee by the Department of Homeland Security (DHS), posted online in the Federal Register on Monday to be formally published on Tuesday, kicks off a 30-day public comment period. The rule could be finalised by the end of the year. The H-1B program allows US employers to hire foreign workers with training in specialty fields and offers 65,000 visas annually, with another 20,000 for workers with advanced degrees, approved for three to six years. The order Trump issued last year sharply increased the cost of obtaining some H-1B visas, which had typically come with about $2,000 to $5,000 in fees, depending on various factors. Debate over visa program Trump, a Republican, and other critics of the H-1B program say it is abused by many companies who replace American workers with cheaper foreign labour. But business groups and many individual companies have said the visa program is needed to address a lack of qualified American workers for some jobs and to allow US businesses to recruit top talent. About 70 employers had paid the $100,000 fee on a total of 85 visa applications as of late February, according to court filings. In imposing the fee, Trump invoked the president’s power under federal immigration law to restrict the entry of certain foreign nationals who would be detrimental to US interests. The fee is being challenged by the US Chamber of Commerce, the largest US business lobbying group, Democratic-led states and a coalition of unions and employers. Those lawsuits could be amended to challenge the rule proposed this week once it is finalised. Legal challenges mount The lawsuits claim that Trump’s power to restrict entry does not allow him to override the law that created the H-1B visa program. The states and groups that sued also say that DHS cannot impose fees, taxes or other means to generate revenue for the United States without permission from Congress. The Trump administration has maintained that the fee is not a traditional tax and that courts have little power to question the president’s authority to restrict entry into the country. Amid Trump’s broader immigration crackdown, employers last year registered for about 344,000 H-1B visas, down more than 25 per cent from 2024 and fewer than half of the 794,000 visas sought in 2023, according to data from US Citizenship and Immigration Services. The Trump administration has also ordered enhanced vetting of H-1B applicants and proposed a new visa selection process that would favour higher-skilled and better-paid workers. Earlier in August, DHS in a separate rule added fees of up to $4,500 to applications to extend the stay of H-1B workers or to transfer employees based in other countries to the United States.