Trump administration seeks to make $103,265 H-1B visa fee permanent

The Trump administration has unveiled a proposed regulation that would permanently set a fee of $103,265 on new H-1B visas for highly skilled foreign workers. The move, published in the Federal Register on Monday, seeks to codify a temporary charge first imposed last year that has been blocked by the courts.

The fee represents a dramatic increase from the typical $2,000 to $5,000 cost associated with these visas before the presidential order. H-1B visas are widely used by technology, education, and research sectors to hire foreign professionals in specialty fields. The program offers 65,000 visas annually, plus an additional 20,000 for those with advanced degrees, with approvals lasting three to six years.

A federal judge ruled in June that the fee was unlawful and barred its collection. The administration is appealing that decision before a Boston-based appeals court, while a separate legal challenge from a major business group is also pending. The proposed rule could be finalized by the end of the year.

The initial temporary fee, which expires in September, was imposed using presidential authority to restrict entry of foreign nationals deemed detrimental to U.S. interests. Critics, including President Trump, argue the H-1B program is abused by companies seeking cheaper labor over American workers. Business groups counter that the visas are essential for filling roles where qualified domestic workers are scarce.

Court filings show that about 70 employers paid the $100,000 fee on 85 visa applications as of late February. The fee is being challenged by the U.S. Chamber of Commerce, several Democratic-led states, and a coalition of unions and employers. These lawsuits may be amended to contest the new rule once finalized.

Legal opponents argue the president's power to restrict entry does not permit overriding the law that created the H-1B program. They also contend that the Department of Homeland Security cannot impose fees or generate revenue without congressional approval. The administration maintains the fee is not a traditional tax and that courts have limited authority to question presidential decisions on entry restrictions.

Data from U.S. Citizenship and Immigration Services shows employers registered for about 344,000 H-1B visas last year, down more than 25% from 2024 and fewer than half of the 759,000 registrations in 2023. The administration has also introduced enhanced vetting for applicants and proposed a selection process favoring higher-skilled, better-paid workers. Earlier this month, a separate rule added fees of up to $4,500 for H-1B extensions or transfers of employees from overseas.