The Trump administration is seeking to impose a new fee of $103,265 on cap-subject H-1B petitions, including cases involving foreign workers already present in the United States.
The Department of Homeland Security outlined the proposal in a rule released Monday. If finalized, the fee would apply to H-1B petitions counted under the annual statutory limit, including petitions filed under the separate exemption for applicants holding advanced degrees from US institutions.
This would significantly expand the reach of the administration’s earlier six-figure H-1B charge, which primarily affected workers entering the country from abroad.
Fee Could Affect Workers Already in the US
The earlier policy did not generally cover international students and other foreign nationals changing to H-1B status while remaining in the United States. The proposed regulation would bring many of those petitions within the new fee structure.
This could have a direct impact on employers seeking to sponsor international graduates currently working in the US, including those transitioning from F-1 student status or Optional Practical Training to H-1B status.
According to the proposed rule, the $103,265 charge would provide dedicated revenue to recover part of the federal government’s expenses associated with administering the legal immigration system.
The proposal has not yet become final policy. Its implementation would require completion of the federal rulemaking process, which generally includes a public comment period and consideration of responses before a final rule is issued.
Proposal Follows Court Defeat
The administration’s latest move comes after a federal court overturned its previous $100,000 fee targeting H-1B workers hired from outside the United States.
That charge had forced several employers to reconsider recruitment, sponsorship and relocation plans involving foreign professionals. However, its narrower structure left many workers approved for H-1B status from within the country unaffected.
The new regulation appears designed to establish a broader fee through the formal rulemaking process and extend it to a larger share of cap-subject H-1B petitions.
Major Cost Concerns for Employers
If approved, the fee could dramatically increase the cost of sponsoring an H-1B employee. Employers already pay registration, petition, fraud-prevention and other applicable government charges, in addition to legal and administrative expenses.
An additional fee exceeding $100,000 could place H-1B sponsorship beyond the reach of many startups, universities, nonprofit organizations and smaller businesses. It could also affect hiring decisions in industries that rely heavily on specialized foreign professionals, particularly technology, engineering, health care and scientific research.
The practical impact will depend on the final language, including any exemptions, effective dates and rules governing who must pay the charge.
Separate $100,000 OPT Fee Reportedly Considered
DHS is also reportedly considering a separate $100,000 charge connected to Optional Practical Training. OPT allows eligible international students in F-1 status to work in positions related to their field of study after graduation.
No final decision on such an OPT fee has been announced.
For now, both measures should be treated as proposals rather than active fees. Employers, international students and H-1B applicants will be watching the rulemaking process closely for further details.
Note: This article is based on the proposed rule and related reporting available at the time of publication. The fee is not final unless and until the federal rulemaking process is completed.
