US Proposes Over $100,000 Fee for New H-1B Visas: What You Need to Know

The US government has proposed a rule to make a $103,265 fee permanent for new H-1B worker visas, raising costs for tech, education, and research sectors. Existing visa holders and international students in the US are exempt, though the policy faces ongoing federal court challenges.

BUSINESS NEWS

Aagahi Hub

8/25/20262 min read

US passport, dollar bills, and H-1B visa application form representing new US visa fee updates on Aa
US passport, dollar bills, and H-1B visa application form representing new US visa fee updates on Aa

The U.S. government has proposed a new rule that could make hiring foreign talent significantly more expensive for American companies. Under a proposed regulation by the U.S. Department of Homeland Security (DHS), companies may soon have to pay a permanent fee of $103,265 for every new H-1B visa application.

The H-1B visa is widely used by foreign professionals—especially in technology, education, and scientific research—to live and work in the United States.

Understanding the H-1B Visa Program

Every year, the U.S. grants 85,000 new H-1B visas:

  • 65,000 visas for general foreign workers with specialized skills.

  • 20,000 extra visas reserved for applicants holding advanced degrees (such as a Master's or Ph.D.) from U.S. universities.

Before this recent change, employers typically paid between $2,000 and $5,000 in total government fees to sponsor an H-1B worker. The new proposal would raise that cost to over $100,000 per new visa.

Key Details of the Proposed Rule

  • Permanent Cost Increase: The $103,265 fee was temporarily introduced last year. The new DHS proposal aims to make this fee permanent by the end of 2026.

  • Who is Exempt? The heavy fee will not apply to foreign students already in the U.S. who are transitioning from a student visa to an H-1B visa. It also will not affect current H-1B holders who are simply renewing their existing visas.

  • Impacted Sectors: Tech giants, universities, and research institutions will face the highest financial strain if the rule takes effect.

Ongoing Court Challenges

The massive fee increase has sparked strong legal pushback across the United States:

  • Court Battles: A federal judge previously blocked the fee, ruling it illegal. Higher courts are currently reviewing appeals from both sides.

  • Opponents of the Fee: Business groups like the U.S. Chamber of Commerce, several state governments, and labor unions argue that the President and DHS cannot impose huge financial charges without approval from the U.S. Congress.

  • The Government’s View: Supporters of the fee argue it prevents companies from replacing American workers with lower-paid foreign labor. However, business leaders maintain that foreign talent is essential to fill critical skilled-job shortages.

Broader Impact on Foreign Workers

Due to rising costs, stricter vetting, and recent policy changes, overall demand for H-1B visas has dropped significantly. Registrations for H-1B visas fell to roughly 344,000, down over 25% from 2024 and less than half of the nearly 800,000 applications recorded in 2023.

The U.S. government has also introduced extra fees of up to $4,500 for extending current worker stays or transferring employees into the country from abroad.

For more straightforward updates on global migration policies, foreign job opportunities, and international news, stay tuned to Aagahi Hub.