Newly Proposed H-1B Fee Would Add Over $100K to Hiring Costs

The Trump administration is proposing a new $103,265 fee on employers seeking H-1B workers through the annual visa lottery, a move that would dramatically increase the cost of hiring skilled foreign workers and further disrupt an already uncertain talent pipeline.

The fee would apply to all H-1B petitions subject to the annual 85,000-visa cap, according to U.S. Citizenship and Immigration Services (USCIS), as stated in a proposed rule scheduled for publication in the Federal Register Aug. 25. That includes the 20,000 visas reserved for foreign workers with qualifying U.S. master’s degrees or higher.

The proposed fee would be paid on top of existing H-1B filing fees, payable at the time of filing. The next H-1B cap season begins in spring 2027.

The fee would not apply to cap-exempt H-1B petitions, including many positions at universities and nonprofit or government research institutions.

“The proposed H-1B fee is intended to recover the costs incurred across the federal government to adjudicate, vet, and support lawful immigration programs that otherwise must be funded by taxpayers,” said USCIS spokesperson Zach Kahler. 

For employers, the proposal represents another significant potential increase in the cost and complexity of accessing H-1B talent. Technology companies and other businesses that rely on the program to recruit workers in specialized fields such as engineering and software  development would face particularly significant effects.

Specialty Credential: U.S. Employment Immigration

“If this regulation is finalized as proposed, it will likely be subject to litigation,” said Eileen Lohmann, an attorney in the Washington, D.C., office of BAL. “The agency is justifying this new fee based not only on the needs of U.S. Citizenship and Immigration Services, but those of other federal agencies involved in immigration, and is proposing to allocate the majority of the revenue raised to other agencies. That raises significant questions around the scope of USCIS fee authority.”

More Change to the H-1B Landscape

The proposed fee is separate from the Trump administration’s 2025 proclamation imposing a $100,000 charge on certain H-1B workers hired from outside the United States. A federal court later found that proclamation unlawful, and the government is currently blocked from collecting the fee because of litigation.

USCIS says the proposed fee is based on different legal authority. The $100,000 proclamation is scheduled to expire Sept. 21 unless extended.

The administration’s latest proposal comes against the backdrop of a broader overhaul of the H-1B program. Recent changes include replacing the traditional random lottery with a weighted selection system that gives greater consideration to higher-paid positions. The administration is also considering eliminating the 60-day grace period that generally allows H-1B workers who lose their jobs to find another employer, change status or otherwise remain in the country while addressing their immigration status.

USCIS has also changed how officers evaluate employment-based petitions, eliminating guidance that instructed officers to request additional evidence when it was likely to establish eligibility. The administration has separately expanded screening fees for certain employers with large numbers of H-1B and L-1 workers.

It has been reported that the administration is pursuing additional changes to the foreign-student pipeline that supplies many H-1B candidates. A proposed rule on Optional Practical Training (OPT), which allows qualifying F-1 international students to work after graduation, was sent to the Office of Management and Budget for review on Aug. 20. It is thought that the proposal will include another six-figure fee for participation in OPT.

Critics of the H-1B program argue that employers use foreign workers to displace U.S. workers, suppress wages or reduce opportunities for American graduates. Employers and business groups, particularly in the technology sector, have long argued that H-1B visas are necessary to fill specialized positions when qualified U.S. workers are difficult to find.

For HR leaders, the practical issue is likely to be less ideological and more operational: whether the additional cost and uncertainty will change how organizations approach workforce planning, recruiting, and international talent mobility.

Next Steps

The $103,265 fee is not yet in effect. “Since this is a proposed regulation, it is important to note that no changes to H-1B fee requirements are taking effect today,” Lohmann said. “The government will accept comments for 30 days from the public and then will need to consider those comments in formulating a final rule.”

Lohmann added that employers should assess the impact of the proposal on their organization and then determine whether and how they will engage during the public comment period.

“Employers can consider submitting comments on their own, or those that belong to trade groups or coalitions might provide feedback to help shape a group comment,” she said.