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Trump H1B visas are at the center of a new immigration policy fight after the US Department of Homeland Security proposed a $103,265 fee on certain H-1B petitions, including applications for workers already living in the United States.
The proposal, released Aug. 24, 2026, would apply to all H-1B workers subject to the program’s annual statutory cap. That includes applicants with advanced degrees, marking a significant expansion from President Donald Trump’s earlier $100,000 fee aimed primarily at H-1B workers entering the country from abroad.
Trump H1B Visas Face a Powerful New Cost
The proposed payment would be added to existing H-1B filing and immigration fees. Employers could also face the charge if the earlier presidential proclamation is restored through the courts, potentially creating an even larger financial burden for companies hiring foreign professionals.
The H-1B program is capped at 85,000 visa slots each year. Of those, 20,000 are reserved for workers who hold qualifying advanced degrees from US institutions. Demand has historically exceeded supply, making the program especially important to technology, engineering, health-care, and research employers.
Under the proposed rule, the fee would cover petitions connected to:
- Workers selected under the annual H-1B cap
- Applicants with qualifying master’s degrees
- Professionals already present in the United States
- Employers seeking to sponsor foreign workers for specialty occupations
Universities and Hospitals Would Receive Critical Relief
Some organizations would be excluded from the new charge. Universities, hospitals, and research-based institutions that were covered by the earlier proclamation would be spared under the latest proposal.
That exemption could protect major academic and medical employers, which often depend on international talent for teaching, medical research, clinical work, and specialized technical roles. However, private companies, startups, and many small and midsize businesses could still face the full cost.
Why DHS Says the H-1B Fee Is Necessary
DHS said the proposed fee would recover government expenses associated with administering the US immigration system. The money would support agencies involved in immigration adjudication, fraud prevention, national security screening, and technology modernization.
The proposal also reaches beyond the Department of Homeland Security. The departments of Labor, State, and Justice would benefit from funds connected to the program. USCIS and the Executive Office for Immigration Review, which oversees the nation’s immigration courts, would receive roughly two-thirds of the revenue.
USCIS spokesperson Zach Kahler said the charge would help pay for the federal work required to “adjudicate, vet, and support lawful immigration programs that otherwise must be funded by taxpayers.” DHS estimates the fee could generate approximately $8.8 billion annually.
Employers Warn of Explosive Hiring Consequences
Business groups quickly criticized the plan. Neil Bradley, executive vice president and chief policy officer at the US Chamber of Commerce, said the fee could make the H-1B program cost-prohibitive for more US employers.
Bradley specifically highlighted startups and small and midsize businesses, which often lack the resources of large technology companies but still rely on H-1B workers to expand operations and fill specialized positions. He argued that the program helps companies innovate, create jobs, and grow across their businesses.
The proposed cost could influence hiring decisions, salary budgets, relocation plans, and long-term workforce strategies. Employers may reconsider sponsoring international graduates or may shift certain roles to other countries if the fee becomes final.
Proposal Follows Court Defeat of Earlier Fee
The new rule comes after a federal judge in Boston vacated Trump’s previous $100,000 H-1B entry fee. The court found that the charge amounted to an unlawful tax imposed without sufficient authority from Congress.
The Trump administration appealed the decision, but the US Court of Appeals for the First Circuit rejected an emergency request to pause the ruling in July. The legal dispute remains part of the broader uncertainty surrounding H-1B visa policy.
DHS is also reportedly considering a separate $100,000 fee for foreign students who participate in Optional Practical Training after graduating from US colleges. Together, the proposals could substantially alter the cost of hiring and retaining international talent.
Frequently Asked Questions About Trump H1B Visas
What is the proposed new H-1B fee?
DHS has proposed a $103,265 fee for petitions involving H-1B workers subject to the annual statutory cap. The charge would be paid on top of other required immigration fees.
Would the fee apply to workers already in the US?
Yes. Unlike the earlier entry-focused fee, the proposal would cover eligible H-1B petitions for workers who are already in the United States.
Are universities and hospitals exempt?
The proposal would spare universities, hospitals, and research-based institutions from the new fee in circumstances covered by the rule.
Is the $103,265 charge final?
No. It is a proposed rule, meaning the government must follow the regulatory process before deciding whether to implement it. Employers and other stakeholders may have opportunities to respond.