Trump is seeking a fee of $103,265 for new H-1B visas.

      On Monday, the US Department of Homeland Security proposed a regulation to impose a fee of $103,265 on employers for a new H-1B visa. Daniel Wiessner reported on this development for Reuters. A similar fee was blocked by a federal judge in June, who deemed it unlawful.

      H-1B visas allow US employers to hire foreign professionals skilled in specialized fields, with the technology sector relying heavily on them. The program offers 65,000 visas each year, in addition to another 20,000 for individuals holding advanced degrees, granted for periods ranging from three to six years. Previously, the cost for these visas was between $2,000 and $5,000.

      The details of the rule

      The proposed fee would be applicable to petitions that are part of the annual cap of 85,000 visas, including the 20,000 set aside for workers with a master's degree or higher from a US institution. Employers would need to pay this fee in addition to existing filing costs.

      Currently, there are no changes in effect. The Federal Register will publish the notice on August 25, after which the rule must go through the federal regulatory process. According to Reuters, the administration could finalize it by the year's end.

      Who is exempt

      The rule does not apply to cap-exempt petitions, which include many positions at universities, nonprofit organizations, and government research institutions. It also exempts foreign nationals already in the US on student visas, who represent a significant portion of new H-1B recipients. Renewals of existing visas are also excluded from this fee.

      Previous legal challenges

      Last year, Trump imposed a $100,000 fee via executive order, citing the president's authority under immigration laws to limit the entry of foreign nationals who could be detrimental to US interests. A federal judge ruled it unlawful in June and halted the government's ability to collect that fee. A Boston appeals court is currently reviewing that decision, while a separate court is deliberating on a challenge posed by a major business organization. The order is set to expire in September unless extended, marking a year since Trump's signing. DHS has stated that the proposed fee is based on different legal authority.

      Allocation of the revenue

      The proposal outlines that the revenue would be distributed among six agencies. US Citizenship and Immigration Services would receive about $3 billion, while the Executive Office for Immigration Review, which manages immigration courts, would get roughly $2.96 billion. Immigration and Customs Enforcement is expected to receive around $1.05 billion, and the Labor Department about $1.21 billion. Approximately $484 million would go to the State Department, with Customs and Border Protection receiving around $76 million, as detailed by Billal Rahman for Newsweek. The total allocations sum up to about $8.78 billion, which aligns with the annual cap of 85,000 visas priced at $103,265 each. DHS claims this funding will be used for adjudications, fraud detection, national security vetting, labor compliance enforcement, visa screening, immigration court operations, and border biometric systems.

      Legal challenges ahead

      The US Chamber of Commerce is contesting the fee, joined by states led by Democrats and a coalition of unions and employers. The plaintiffs may modify their lawsuits to include the new regulation once finalized. The challengers base their arguments on two points: they assert that Trump's authority to restrict entry does not permit him to override the law that established the H-1B program, and that the Department of Homeland Security cannot impose fees or taxes to generate revenue without congressional authorization. The administration contends that the fee does not qualify as a traditional tax and argues that courts have limited authority to question presidential power regarding entry into the country.

      Limited participation in the previous fee

      As of late February, only about 70 employers had paid the $100,000 fee across 85 visa applications, according to court filings referenced by Reuters.

      Declining applications

      Employers applied for roughly 344,000 H-1B visas last year, as per data from US Citizenship and Immigration Services, representing a decline of over 25% compared to 2024. This figure is also less than half of the 794,000 registrations sought in 2023.

      The broader policy changes

      This fee is part of a larger reform. The administration has mandated increased scrutiny of H-1B applicants and proposed replacing the lottery system with a weighted system that favors higher-paid and higher-skilled workers. Additionally, it has suggested eliminating the grace period that allows laid-off H-1B employees to remain in the US while seeking new employment. Earlier this month, DHS introduced fees of up to $4,500 for applications to extend the stay of H-1B workers or transfer employees from abroad. This fee is part of a distinct regulation related to the 9/11 response and biometric entry-exit fees. Newsweek also reported that DHS is considering a $100,000 fee for F-1 visa graduates aiming to join