Trump Administration Proposes $103,265 Fee for New H-1B Worker Petitions

The Donald Trump administration has proposed a major increase in the cost of hiring certain foreign skilled workers in the United States, with a new $103,265 fee for H-1B cap-subject petitions.

The proposal, announced by the US Department of Homeland Security (DHS), would significantly increase the financial burden on American employers seeking to hire highly skilled workers through the H-1B programme.

The proposed fee is intended to recover costs associated with administering the US immigration system, according to DHS. The department said the charge would help cover expenses involving agencies such as US Citizenship and Immigration Services (USCIS), Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE).

However, the proposal goes beyond simply recovering administrative expenses.

DHS acknowledged that the higher cost could also discourage some American companies from choosing H-1B workers when qualified US workers are available.

What the proposed $103,265 H-1B fee means

The proposed charge would apply to H-1B cap-subject petitions, rather than every H-1B application.

The US currently has an annual H-1B allocation of 85,000 visas, comprising 65,000 places under the regular cap and another 20,000 for foreign workers with qualifying advanced US degrees.

Before the Trump administration’s recent measures, employers typically faced H-1B-related fees in the thousands of dollars rather than more than $100,000.

Reuters reported that previous fees generally ranged between about $2,000 and $5,000, depending on the circumstances.

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The proposed $103,265 charge would therefore represent a dramatic increase for employers that depend on the programme to recruit foreign professionals.

Why Trump wants to raise the H-1B cost

The Trump administration has repeatedly criticised the H-1B system, arguing that some companies have used foreign workers to replace American employees rather than address genuine shortages.

The administration has also argued that making H-1B workers more expensive could encourage employers to hire qualified American workers.

The new proposal gives that argument an additional financial dimension.

DHS estimates that applying the $103,265 charge to 85,000 H-1B cap-subject petitions could generate approximately $8.8 billion in annual revenue.

The department says the revenue would help cover costs associated with the lawful immigration system.

New proposal differs from Trump’s earlier $100,000 fee

The latest proposal should not be confused with the $100,000 H-1B payment introduced by Trump in September 2025.

That earlier measure was imposed through a presidential proclamation and became the subject of legal challenges.

A federal court in Massachusetts vacated the government guidance implementing the $100,000 payment in June 2026, while the Trump administration appealed the decision.

The new $103,265 proposal relies on a different legal basis.

According to DHS, the proposed fee would remain separate from other applicable H-1B payments. This means that if the earlier $100,000 measure is eventually reinstated or extended, employers could potentially face both charges, depending on the final legal outcome and terms of the measures.

Which workers could be affected?

The proposed fee is aimed at new H-1B cap-subject petitions.

Reuters reported that the measure would not apply to certain foreign nationals already in the United States on student visas or to renewals of existing H-1B visas.

This distinction is important for foreign professionals considering the US as a destination for employment.

The proposal does not mean that every H-1B worker would suddenly have to pay $103,265.

Instead, the financial responsibility would primarily fall on employers submitting covered petitions.

Technology and other industries could feel the impact

The H-1B programme is widely used by American companies to recruit professionals in specialised fields.

Technology companies have historically been major users of the programme, while employers in education, research, healthcare, engineering and other specialist industries also rely on international talent.

Reuters reported that the proposed increase could particularly affect sectors that depend heavily on highly skilled foreign workers.

Critics of the proposal argue that making H-1B recruitment dramatically more expensive could worsen labour shortages in areas where American employers already struggle to find qualified workers.

Supporters of the administration’s approach, however, argue that companies should prioritise qualified American workers where they are available.

H-1B demand has already changed

The proposed fee comes as demand for H-1B visas has shifted.

According to Reuters, employers registered for around 344,000 H-1B visas in the previous registration cycle, more than 25% below the 2024 figure and substantially below the approximately 794,000 registrations recorded in 2023.

The administration has also pursued other changes to the H-1B system, including enhanced vetting and a proposed selection process designed to give greater weight to highly skilled and highly paid workers.

Employers may face difficult decisions

If the proposed fee becomes final, companies would have to consider whether sponsoring an H-1B worker remains financially viable.

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For smaller businesses and organisations operating with limited recruitment budgets, a six-figure government fee could make international recruitment significantly more difficult.

Larger technology companies and other employers with substantial resources may be better positioned to absorb the additional cost.

Business groups and other critics have already raised concerns about the potential effect on employers that rely on international talent to fill specialised positions.

Proposal still needs to go through the rulemaking process

The $103,265 charge is not yet a final H-1B fee.

It has been published as a proposed rule, meaning it remains subject to the federal regulatory process and could face further legal challenges. The administration could modify the proposal before issuing a final rule.

The measure is also likely to remain controversial because opponents have questioned whether DHS has sufficient authority to impose such a large revenue-generating charge without congressional approval.

For prospective foreign workers, particularly professionals seeking opportunities in the United States, the proposal could therefore become an important development to monitor.