The Biden administration announced intentions to implement a new fee structure for H-1B visa applications, aiming to formalize a previously imposed over $100,000 fee that was initially introduced by the Trump administration last year but faced legal challenges. The fee, which significantly increases the cost for highly skilled foreign workers seeking H-1B visas—an essential visa type for tech, education, and research sectors—is now poised to become permanent through new regulations.
A federal judge in June invalidated the earlier fee, citing it as unlawful, and temporarily barred its collection. Currently, an appeals court based in Boston is reviewing that decision, while another court is examining whether a separate ruling rejecting a challenge by a major business association was appropriate. Although Trump’s 2025 proclamation that introduced the fee expired in September, it directed the Department of Homeland Security (DHS) to establish regulations making the fee permanent.
The DHS has proposed a fee of $103,265 for new H-1B visas, which was published for public comment in the Federal Register and will remain open for 30 days. The final rule could take effect by year’s end. Under the H-1B program, U.S. companies can employ foreign specialists, with the program providing 65,000 visas annually, plus an additional 20,000 for advanced degree holders. These visas typically have durations ranging from three to six years.
The fee hike caused a sharp increase in visa costs, which previously ranged from about $2,000 to $5,000, depending on circumstances. Trump invoked his authority under federal immigration law to impose restrictions that he argued would benefit U.S. interests, but this move has been met with legal opposition from business groups, Democratic-led states, and coalitions of unions and employers. These groups argue that the authority to restrict entry does not permit the DHS to impose fees or taxes without Congressional approval, asserting that the new fee is effectively a revenue-generating tax.
Legal battles are ongoing, with lawsuits challenging the administration’s authority to set such fees and contesting whether the DHS can impose them at all. The cases claim that the president’s power to regulate immigration does not extend to creating revenue-generating fees outside of Congressional approval. The Trump administration has maintained that the fee is not a traditional tax and that courts have limited power to question presidential immigration restrictions.
Despite these legal disputes, employer demand for H-1B visas has decreased—from roughly 344,000 applications last year, a drop of more than 25% from 2024, and less than half of the 794,000 petitions filed in 2023—possibly reflecting broader immigration policy changes. Additionally, the DHS has introduced measures to increase scrutiny of visa applicants, favoring higher-skilled and higher-paid workers, along with new fees of up to $4,500 for extending or transferring H-1B visas.
