Trump Administration Plans $100K Fee for H-1B Visas
On Monday, the administration of President Donald Trump unveiled a proposed regulation aimed at formalising an extraordinary fee exceeding $100,000 on new H-1B visas for highly skilled foreign workers. This fee, initially instituted by Trump last year, has faced legal challenges that have hindered its implementation. The fee initially introduced by Trump in a temporary proclamation last year significantly increases the expenses associated with the visas that are crucial for the technology, education, and research industries. A federal judge in June determined that the fee was unlawful and prohibited the Trump administration from enforcing its collection. A Boston-based appeals court is currently examining that decision, while another court is deliberating on whether a judge in Washington, DC, appropriately dismissed a challenge to the fee put forth by a prominent business group. Trump’s 2025 proclamation imposing the fee is set to expire in September, one year after its issuance. However, it has directed the US Department of Homeland Security to adopt regulations that would render it permanent. The proposed fee of $103,265 by DHS, which was posted online in the Federal Register on Monday and is set for formal publication on Tuesday, initiates a 30-day public comment period.
The rule may be finalised by year-end. The H-1B program permits U.S. employers to engage foreign workers possessing expertise in specialised fields, providing a total of 65,000 visas each year, along with an additional 20,000 for individuals holding advanced degrees, with a duration of approval ranging from three to six years. The order Trump issued last year significantly raised the expenses associated with acquiring certain H-1B visas, which had generally incurred fees ranging from approximately $2,000 to $5,000, contingent upon various factors. DEBATE OVER VISA PROGRAM Trump, a Republican, and other critics of the H-1B program argue that it is exploited by numerous companies that substitute American workers with less expensive foreign labour. Business groups and numerous individual companies assert that the visa program is essential to remedy the shortage of qualified American workers for certain positions and to enable U.S. businesses to attract top talent.
As of late February, approximately 70 employers had remitted the $100,000 fee for a cumulative total of 85 visa applications, as indicated in court filings. In imposing the fee, Trump exercised the authority granted to the president under federal immigration law to limit the entry of specific foreign nationals deemed harmful to US interests. The fee is currently under scrutiny from the U.S. Chamber of Commerce, the largest business lobbying organization in the United States, as well as from Democratic-led states and a coalition comprising unions and employers. Those lawsuits may be revised to contest the rule suggested this week once it is officially established. The lawsuits assert that Trump’s authority to limit entry does not permit him to supersede the legislation that established the H-1B visa program. The states and groups that initiated the lawsuit contend that the Homeland Security Department lacks the authority to impose fees, taxes, or other mechanisms to generate revenue for the United States without congressional approval.
The Trump administration has asserted that the fee does not constitute a conventional tax and that judicial bodies possess limited authority to challenge the president’s power to impose restrictions on entry into the country. Amid Trump’s broader immigration crackdown, employers last year registered for approximately 344,000 H-1B visas, reflecting a decline of over 25% from 2024 and representing less than half of the 794,000 visas requested in 2023, according to data from U.S. Citizenship and Immigration Services. The Trump administration has implemented stricter vetting procedures for H-1B applicants and has proposed a revised visa selection process that prioritises higher-skilled and better-compensated workers. Earlier in August, the Department of Homeland Security, in a separate rule, implemented fees of up to $4,500 for applications aimed at extending the stay of H-1B workers or transferring employees from other countries to the United States.
