US proposes $103,265 fee on new H-1B visa petitions

The US Department of Homeland Security has proposed a $103,265 fee on every cap-subject H-1B petition, a charge employers would pay in addition to existing fees. DHS says it would generate about $8.8 billion annually to recover costs across immigration adjudication, security screening, courts, and labour enforcement. The proposal is not final, it will be published in the Federal Register on Tuesday, opening a 30-day public comment period.

Vice-President JD Vance backed the proposal, saying companies should hire Americans. Critics, including FWD.us President Todd Schulte, called it a massive tax on businesses that would weaken legal immigration and push jobs overseas. A similar $100,000 charge attempted via presidential proclamation was struck down by a Boston federal judge in June, who ruled it was an illegal tax requiring congressional authority. DHS now argues that federal law permits fees set to recover the full cost of immigration adjudication services.

The fee would not apply to cap-exempt employers such as universities, non-profits, and government research bodies. Indian professionals and IT companies dominate the H-1B programme, making them particularly exposed. The proposal also covers foreign graduates already in the US on F-1 visas transitioning to H-1B status through employment, potentially raising costs for junior and mid-level hires.