THE TRUMP ADMINISTRATION on Monday proposed converting its temporary $100,000 charge on new H-1B visas into a permanent $103,265 fee, escalating a fight over the cost of recruiting highly skilled foreign workers.
The Department of Homeland Security proposal could be finalized by year-end. Donald Trump’s existing fee is scheduled to expire in September, one year after he imposed it.
The policy would transform the economics of a visa program used across the technology, education and research sectors. It would also test the federal government’s authority to generate revenue through restrictions attached to a visa program established by Congress.
U.S. District Judge Leo Sorokin ruled the temporary fee unlawful in June, finding that the administration lacked congressional authorization to impose it. The Boston-based 1st U.S. Circuit Court of Appeals is reviewing that decision. A separate appeals court is considering a judge’s rejection of another challenge brought by a major business organization.
The H-1B program permits American employers to hire foreign workers for specialty occupations requiring advanced training. The government makes 65,000 visas available annually, along with 20,000 additional visas for workers holding advanced degrees. The visas are generally approved for periods ranging from three to six years.
Employers typically paid between $2,000 and $5,000 in visa-related fees before Trump’s order. The proposed charge would place the government’s fee above $100,000 for every covered application.
The Fight Over Skilled-Worker Hiring
Trump and other H-1B critics contend that companies use the program to replace American employees with lower-paid foreign labor. Business groups and individual employers say the visas fill positions for which qualified American workers are scarce and help U.S. companies compete for specialized talent.
Trump based the original charge on the president’s authority under immigration law to restrict the entry of foreign nationals deemed detrimental to American interests. His September 2025 proclamation directed the government to deny entry to covered H-1B workers unless their prospective employers paid $100,000.
The charge produced limited payments during its first months. USCIS had received evidence of 85 settled payments totaling $8.5 million as of Feb. 15, according to a declaration filed in federal court.
The permanent proposal would give employers a new financial calculation when hiring internationally. The cost carries particular weight for organizations seeking several workers at once and for employers in fields that depend on specialized education or technical expertise.
Courts Examine Executive Authority
The fee faces challenges from the U.S. Chamber of Commerce, Democratic-led states and a coalition of unions and employers.
The challengers argue that the president’s power to restrict entry does not permit him to override the law governing H-1B visas. They also contend that Homeland Security cannot impose a fee, tax or other revenue-producing charge without congressional authorization.
The administration maintains that the payment is a regulatory measure rather than a conventional tax. It also argues that courts have limited authority to review the president’s decisions restricting entry into the United States.
Existing plaintiffs could amend their lawsuits to target the new regulation after it becomes final. The litigation will determine whether formal agency rulemaking can establish the six-figure charge and whether the underlying payment remains within the executive branch’s immigration authority.
Demand for the visas has already fallen sharply. Employers submitted about 344,000 H-1B registrations in 2025, a decline of more than 25% from 2024 and less than half the 794,000 registrations filed in 2023, according to U.S. Citizenship and Immigration Services data.
The administration has also ordered enhanced screening of H-1B applicants and proposed favoring higher-paid, more highly skilled workers in the visa-selection process. A separate Homeland Security rule added charges of up to $4,500 to certain H-1B extension requests and intracompany transfers.
The outcome will determine whether a six-figure payment becomes a lasting feature of skilled-worker hiring and how far an administration can reshape a congressionally created visa program through entry restrictions and agency fees.
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