H-1B fee hike: Trump plan could push cost above $200,000

The Trump administration has proposed an additional $103,265 fee for each H-1B petition subject to the annual cap, a move that could take the cost of sponsoring some foreign workers above $200,000 if a separate $100,000 payment introduced earlier is also ultimately applied, reported USA TODAY.

The proposal could have a major impact on Indian professionals, who accounted for 71% of approved H-1B petitions in fiscal 2024, according to US Citizenship and Immigration Services (USCIS).

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The proposed $103,265 charge was published by the US Department of Homeland Security (DHS) in August. Public comments on the proposal are open until September 24.

If the new proposal and the earlier $100,000 payment were both to apply to the same eligible petition, the combined amount would be $203,265.

Why the proposed fee matters for Indians

India is the largest source of H-1B beneficiaries in the US. USCIS data shows that beneficiaries born in India accounted for 71% of all H-1B petitions approved in FY2024, compared with about 12% for China.

The H-1B programme allows US employers to hire foreign workers for specialised jobs, including positions in technology, engineering, healthcare and research.

Also Read: US cracks down on H-1B wage manipulation in three states

The annual H-1B cap is 85,000. This includes 65,000 regular slots and another 20,000 slots for foreign workers with a master's degree or higher from a US institution of higher education.

The proposed $103,265 payment would be an employer-side charge. Indian professionals would not be required to personally pay it when a US employer sponsors their H-1B petition.

DHS has proposed applying the additional fee to cap-subject H-1B petitions, including those eligible for the advanced-degree exemption. It would not apply to cap-exempt petitions, including certain petitions filed by universities and nonprofit or government research organisations.

How the H-1B cost could reach Rs 2 crore

The proposed $103,265 fee alone is roughly equivalent to Rs 1 crore, depending on the exchange rate.

A separate $100,000 payment was introduced by the Trump administration in September 2025 for certain H-1B petitions. A federal court in Massachusetts later vacated the government guidance implementing that payment, and the US government appealed the decision. DHS said in its new proposed rule that the appeal remains pending.

If both payments were ultimately applicable to the same petition, the combined amount would be $203,265, which is roughly Rs 2 crore.

However, the combined $203,265 amount is not a new universal H-1B fee. The $103,265 charge is still a proposal, while the earlier $100,000 payment remains tied up in litigation.

DHS expects billions in revenue

DHS has proposed the $103,265 charge as an additional fee to recover part of the federal government's costs of administering the immigration system.

The department estimates that the fee could generate about $8.8 billion annually based on an estimated 85,000 cap-subject H-1B petitions. The money would help cover costs linked to immigration adjudication, fraud detection and national security vetting, systems modernisation, immigration courts, consular processing, labour standards enforcement and other immigration-related functions.

The proposed fee would be separate from existing H-1B fees and other payments. DHS has specifically said it is proposing the charge as an additional fee rather than combining it with the existing H-1B petition fee.

Tech firms, universities among H-1B users

Technology companies are among the major users of the H-1B programme, while universities and research institutions also rely on the visa category for specialised academic and research positions.

The higher cost could therefore affect employers across technology, education, healthcare and research.

Business groups and immigration advocates have raised concerns that higher sponsorship costs could make it harder for employers to hire foreign workers, particularly where organisations depend on specialised talent.

Healthcare sector raises shortage concerns

Healthcare organisations have also raised concerns about the impact of higher H-1B costs on the recruitment of foreign-trained doctors and other medical professionals.

Hospitals and research institutions use H-1B workers for specialised roles, and immigration advocates have argued that restricting access to foreign professionals could worsen staffing shortages in some areas.

California Attorney General Rob Bonta, who challenged the earlier $100,000 payment, said it creates "unnecessary – and illegal – financial burdens on California public employers and other providers of vital services, exacerbating labor shortages in key sectors."

What happens to Trump's earlier $100,000 H-1B payment?

Trump introduced the $100,000 payment for certain H-1B petitions in September 2025.

A federal court in Massachusetts later vacated the government guidance implementing the payment. The US government appealed the ruling, and the case remains pending before the US Court of Appeals for the First Circuit. DHS referred to the pending appeal in its August 2026 proposed rule.

The new $103,265 proposal is separate from that payment and is based on different legal authority. DHS is pursuing it through the federal rule-making process regardless of the outcome of the earlier court case.

The department is accepting public comments on the proposal until September 24. It will then review the comments before deciding whether to finalise, modify or withdraw the proposal.

For Indian professionals and US employers, the outcome of both the new rule-making process and the court challenge over the earlier $100,000 payment will be important.

If both payments eventually apply to the same eligible H-1B petition, the employer-side cost could exceed $200,000.