The Trump administration has revived its controversial H-1B visa fee strategy after suffering a major legal setback earlier this year. Instead of relying on the previous presidential proclamation that imposed a $100,000 charge, the administration has now proposed a formal regulation that would establish a $103,265 fee for cap-subject H-1B petitions.
The development marks a significant new chapter in the administration’s immigration policy. The H-1B program has long been a central pathway through which U.S. employers recruit highly skilled professionals from overseas. Technology companies, universities, research institutions and other employers use the program when they require specialized workers.
Under the proposed regulation, the additional fee would be imposed at the time of filing and would come in addition to other applicable H-1B charges. DHS says the money would help cover government expenses associated with immigration processing, fraud detection, national security vetting, modernization of immigration systems and other activities connected to lawful immigration.
The administration estimates that the new charge could produce approximately $8.8 billion each year. DHS says this revenue would help recover federal government costs that otherwise have to be supported by taxpayers.
The proposal is substantially different in legal structure from the policy announced in 2025. Last year, President Trump used a presidential proclamation to impose a $100,000 fee on certain H-1B visas. That policy was challenged by states and other groups, and U.S. District Judge Leo Sorokin ruled in June 2026 that the administration had unlawfully imposed what amounted to a tax without congressional authorization.
The administration appealed the decision but faced another setback when a federal appeals court declined to pause the lower court ruling. With the earlier policy facing serious legal difficulties, DHS has now turned to the formal rulemaking process.
The timing is also important because the previous temporary measure was scheduled to expire in September. The new proposal could therefore serve as an attempt to establish a longer-lasting framework rather than relying on a temporary presidential action.
The potential consequences for American employers are considerable. A fee exceeding $100,000 could alter the calculations companies make when deciding whether to recruit foreign professionals. An employer that previously paid several thousand dollars in government fees for an H-1B petition could suddenly face an additional six-figure financial obligation.
This could particularly affect smaller companies that lack the financial resources of major multinational corporations. While large technology companies may be able to absorb such expenses, smaller businesses, startups and institutions with limited budgets could find international recruitment much more difficult.
The proposal has also generated concern among organizations that rely on foreign talent to fill specialized positions. Business groups have argued that H-1B workers are important for sectors facing shortages of qualified workers. Universities and healthcare organizations have similarly raised concerns about restrictions that could make it harder to recruit specialized professionals.
The administration’s argument is fundamentally different. Trump and his supporters have criticized the H-1B program for years, saying it can allow companies to hire foreign workers instead of Americans and, in some cases, reduce labor costs. The administration argues that increasing the cost of H-1B recruitment could encourage companies to look first for qualified U.S. workers.
The proposed rule would not apply universally to every H-1B petition. DHS specifically states that the additional fee would apply to cap-subject petitions, while certain petitions not subject to the annual cap, including those filed by some nonprofit research organizations, governmental research organizations and institutions of higher education, would be excluded.
For now, the proposal remains just that—a proposal. A 30-day public comment period will follow its publication in the Federal Register. The final outcome could depend on administrative decisions, public comments and potentially another round of litigation.
The latest move shows that the H-1B debate is far from over. Rather than abandoning the idea after the court setback, the Trump administration is attempting a different legal route. The coming months will determine whether the six-figure fee becomes a permanent feature of America’s skilled-worker immigration system.
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