The Trump administration has proposed making permanent a $103,265 fee on new H-1B visas for skilled foreign workers, a move that would dramatically increase the cost of the program despite a court ruling that blocked an earlier version of the fee.

The proposed regulation, released by the Department of Homeland Security (DHS) and posted in the Federal Register on Monday, would codify a fee that President Donald Trump first imposed through a temporary proclamation in September 2025. That proclamation is due to expire next month, but it directed DHS to adopt regulations making the fee permanent, according to multiple outlets including Reuters and Business Standard.

Fee details and scope

The proposed $103,265 fee would apply to all H-1B cap-subject petitions, including those filed under the advanced degree exemption, according to DHS. The fee would be paid at the time of filing and in addition to all other applicable fees, an official press release cited by ANI (Asian News International) said.

The fee would not apply to cap-exempt petitions, such as those filed by nonprofit research organizations, government research bodies, and institutions of higher education, DHS said. It would also not apply to foreign nationals already in the US on student visas who later transition to H-1B status, or to renewals of existing H-1B visas, according to Times Now.

However, a footnote in the draft proposal indicates that the fee could apply to a worker who is eligible for a fresh six-year period of H-1B admission, even if they have already been counted against the cap, The Times of India reported.

DHS estimates the fee would generate approximately $8.8 billion annually based on 85,000 petitions, according to India Today and The Hindu Business Line. The department said the fee is intended to recover costs incurred across the federal government to adjudicate, vet, and support lawful immigration programs, a USCIS spokesperson told ANI.

Legal challenges

The proposed rule comes after a federal judge in June ruled that the earlier $100,000 fee was illegal and blocked its collection. In that case, US District Judge Leo Sorokin found that the president lacked authority to impose such a tax, CNN reported. A Boston-based appeals court on Friday rejected a bid by the administration to halt that order, according to Hindustan Times.

The fee is being challenged in separate litigation by the US Chamber of Commerce, Democratic-led states, and a coalition of unions and employers. Those lawsuits argue that the president's immigration authority does not allow overriding the law that established the H-1B program, and that DHS cannot impose fees without congressional approval. The administration maintains the fee is not a traditional tax and that courts have little power to question presidential authority, Reuters reported.

Impact on Indian professionals

The proposed fee is expected to hit Indian professionals hardest, as they account for the largest share of H-1B beneficiaries. USCIS data for fiscal year 2024 shows that 71% of approved H-1B petitions were for Indian-born workers, according to multiple outlets including Outlook India and Free Press Journal.

Immigration experts have criticized the fee. Emily Neumann, an immigration attorney, told India Today: "Same number. New wrapper. Same playbook. Throw enough things at the wall to restrict legal immigration and eventually something might stick (this won't)."

Cyrus D Mehta, another immigration attorney, called the fee "preposterous" and said it "heralds the death of the H-1B program," according to The Times of India.

Todd Schulte, president of FWD.us, said the move could hurt the US' ability to attract and retain skilled workers, as reported by India Today.

Broader context

The proposal is part of a broader tightening of the H-1B system. Since January 2025, the administration has introduced more intensive screening and enforcement across legal and humanitarian immigration, The Economic Times reported. DHS has also proposed ending the 60-day grace period for certain H-1B workers after employment ends, and has added fees up to $4,500 for applications to extend stay or transfer employees, according to multiple outlets.

The administration has said the H-1B program is abused by companies that replace American workers with cheaper foreign labor. Business groups maintain the program is necessary to address shortages of qualified American workers, as reported by The Independent and others.

Employers submitted about 344,000 H-1B registrations last year, down more than 25% from 2024 and less than half of the 794,000 in 2023, according to Reuters and Nikkei Asia.

The proposed rule now enters a 30-day public comment period. DHS could finalize it by the end of the year, according to multiple outlets.