World
DHS Proposes $103,265 H-1B Fee After Court Block
Will employers cut U.S. hiring or push more work offshore?
Will employers cut U.S. hiring or push more work offshore?
The H-1B fee fight is now a test of whether the United States will keep using the visa as a for global skilled labor or turn it into a much costlier . A proposed could push employers to hire less in the U.S., shift work , and narrow opportunities for workers from India and other major sending countries, even as universities and some research institutions remain outside its reach.
must review the before deciding whether to issue a later in the year. Reuters and other outlets reported that the administration wants the fee to survive the court defeat, but a new is likely if the rule advances. The August proposal is therefore the start of a new regulatory battle, not the end of the H-1B fee fight.
The policy is expected to hit Indian professionals hardest because Indian nationals make up a large share of . That could disrupt staffing models used by Indian tech firms and U.S. employers that recruit heavily from India, while also affecting and migration patterns. The fee therefore carries consequences beyond immigration, it could reshape cross-border talent and decisions.
Business reaction focused on higher costs forcing companies to reconsider whether to file at all. The likely responses include delaying hiring, shifting roles overseas, relying more on , or using instead of U.S.-based placements. Tech and are expected to feel the pressure most because they use the program heavily.
The proposal does not apply to , including many cases filed by universities, nonprofit research groups, and some government research institutions. It also does not reach extensions, amendments, transfers for workers already counted under the cap, or other non-cap . That distinction limits the immediate reach of the policy even as it sharply raises costs for new .
The proposed charge applies to , including filings under the and the . It is added on top of other filing costs, rather than replacing existing fees. That makes the policy especially significant for employers that depend on the to hire foreign skilled workers.
The proposal was scheduled for formal publication in the Federal Register on August 25, which starts a 30-day . During that window, employers, universities, trade groups, and immigration advocates can file objections or request changes before DHS finalizes any rule. The fee is not yet in effect while that process runs.
DHS posted a setting the H-1B fee at $103,265 and described it as an effort to make the charge . Reuters said the notice was placed online in the Federal Register on Monday, with formal publication due the next day. The proposal revived the six-figure fee in a new regulatory form after the court defeat.
By August 24, the revised H-1B fee proposal had cleared and was posted for publication in the the same day. Reuters reported that the administration was moving to codify the charge after the earlier version was blocked by the courts. The step signaled that DHS was using formal to give the policy a more durable legal footing.
A rejected the government’s bid to pause the , leaving the fee unenforceable while the case continued. Reuters reported that the administration had tried to preserve the during appeal, but the court declined to revive it. The setback left DHS without a live fee and increased pressure to find a rulemaking path.
A federal judge in Boston struck down the Trump administration’s earlier $100,000 fee on new and halted collection efforts nationwide. The ruling said the administration had exceeded its authority by imposing what the court treated as an without . That decision set up the later move toward a formal rulemaking instead of an emergency-style fee order.