Washington: The Trump administration has proposed making permanent a controversial fee of more than US$100,000 for new H-1B visas, significantly increasing the cost of bringing highly skilled foreign workers to the United States.
The proposal, published by the US Department of Homeland Security in the Federal Register on Monday, would set the fee at US$103,265 and could be finalised by the end of the year.
The measure follows an executive order issued last year by President Donald Trump that temporarily imposed the fee, which is currently facing legal challenges in US courts.
The H-1B visa programme allows US employers to hire foreign professionals in specialised fields, including technology, engineering, research and education. The programme issues 65,000 visas annually, with an additional 20,000 visas available for applicants holding advanced degrees.
Before the fee increase, H-1B visa costs typically ranged between US$2,000 and US$5,000.
Wider impact expected
According to the proposed regulation, the fee would apply more broadly than Trump’s original order.
The temporary measure did not apply to foreign nationals already in the United States on student visas, who account for a significant share of new H-1B recipients, nor did it generally affect visa renewals. The proposed rule appears to extend the fee to a wider category of applicants.
Ongoing legal challenges
A federal judge in June ruled that the fee was unlawful and blocked the administration from collecting it.
The ruling is currently under review by a federal appeals court, while separate litigation continues in another court following challenges from business groups, Democratic-led states, unions and employers.
The lawsuits argue that the president’s authority to restrict entry into the United States does not allow the administration to override legislation creating the H-1B programme.
Opponents also contend that the Department of Homeland Security lacks authority to impose fees designed to generate federal revenue without congressional approval.
The Trump administration maintains that the charge is not a tax and argues that courts have limited authority to question presidential immigration powers.
Debate over H-1B programme
Trump and other critics of the H-1B programme have argued that some companies use the system to replace American workers with lower-cost foreign labour.
Business groups and many employers have defended the programme, saying it is essential for addressing shortages of highly skilled workers and enabling companies to recruit global talent.
Court filings show that approximately 70 employers had paid the fee on 85 visa applications as of late February.
Immigration crackdown
The proposed rule forms part of a broader effort by the administration to tighten immigration controls and reshape skilled-worker visa programmes.
According to US Citizenship and Immigration Services, employers registered for approximately 344,000 H-1B visas last year, down more than 25% from 2024 and less than half the 794,000 applications filed in 2023.
The administration has also introduced enhanced screening procedures for H-1B applicants and proposed changes favouring higher-skilled and higher-paid workers.
Earlier this month, the Department of Homeland Security introduced additional fees of up to US$4,500 for certain H-1B visa extensions and employee transfer applications.