The Department of Homeland Security proposed a new $103,265 fee for cap-subject H-1B visa petitions on Aug. 24. The proposed fee would fundamentally reshape the economics of hiring skilled foreign workers in the United States.
The H-1B visa program is the primary pathway for U.S. employers to hire foreign workers in specialty occupations including technology, engineering, finance, and medicine. The annual cap is set at 85,000 visas per year, according to U.S. Citizenship and Immigration Services.
The proposed fee would apply on top of existing H-1B filing costs, which already include base filing fees, fraud prevention fees, and public law surcharges. If finalized, the six-figure additional cost would make each H-1B petition among the most expensive employment-based immigration filings in the world.
The proposal is subject to a public comment period before it can take effect, USCIS said. Industry groups, immigration attorneys, and employer associations are expected to submit extensive comments during the rulemaking process.
For the technology industry and other sectors heavily reliant on H-1B workers, the fee would substantially increase the cost of hiring foreign talent relative to domestic alternatives. Companies would face a direct financial calculation on whether the cost of sponsoring a foreign worker justifies the investment.
The proposed fee could affect hundreds of thousands of workers and their families already in the United States on H-1B status, as well as companies planning future hires. Employers range from major technology firms and universities to hospitals and financial institutions.
Proponents of higher H-1B fees argue they encourage companies to invest in training and hiring American workers first. Critics contend the fees could drive innovation and talent to competing countries.