The United States Department of Homeland Security (DHS) has put forward a proposal that could drastically increase the cost of H-1B visas for employers. Under the new plan, an additional fee of $103,265 would be applied to each H-1B visa petition subject to the annual cap. If a separate $100,000 payment, introduced in September 2025 by former President Donald Trump and currently under legal challenge, is ultimately upheld and applied, the cumulative employer-side cost for an H-1B visa could soar to $203,265.
Impact on Indian Professionals and US Companies
This potential fee increase carries substantial implications, particularly for Indian professionals. In fiscal year 2024, Indian nationals accounted for a significant 71% of all H-1B petitions approved by US Citizenship and Immigration Services (USCIS). For these individuals and their sponsoring employers, the combined fees could translate to roughly ₹2 crore, depending on prevailing exchange rates.
The proposal comes in the wake of a sharp decline in applications from abroad following the initial introduction of the $100,000 payment. USCIS data showed only 85 applicants filed during the first five months under that fee, generating $8.5 million before the policy faced legal challenges. Despite this revenue, the overall number of applicants fell by 87%, resulting in a $28 million reduction in expected revenue during that period.
Understanding the H-1B Program and Proposed Changes
The H-1B program is a crucial pathway for US employers to hire foreign workers in specialized fields such as technology, engineering, healthcare, and research. The program has an annual cap of 85,000 visas, which includes 65,000 regular slots and an additional 20,000 reserved for workers holding a master's degree or higher from US institutions. The newly proposed fee would specifically target cap-subject petitions, meaning petitions filed by universities and certain research organizations, which are cap-exempt, would not be affected. It is important to note that employers, not the workers themselves, are responsible for paying these fees.
Debate and Concerns Across Sectors
The proposed fee hike has ignited considerable debate. Some technology professionals and IT workers have expressed support, viewing it as a measure to reduce competition from foreign labor. Conversely, immigration advocates and various institutions warn that such elevated fees could negatively impact staffing levels, research initiatives, and overall innovation within the US economy.
Major technology companies like Amazon, Apple, Google, and Meta are among the largest users of H-1B visas. Universities and research institutions also heavily rely on this visa category, employing thousands of faculty members and researchers. Healthcare organizations have voiced significant concern, highlighting the potential for worsened physician shortages, especially in rural and underserved areas, and increased strain on healthcare systems, as foreign-trained doctors and medical professionals constitute a vital part of the clinical workforce.
Legal Battle Over Previous Fee
The earlier $100,000 payment remains embroiled in litigation. A US District Judge previously ruled it unlawful, but the government is currently appealing that decision. The Justice Department maintains that the payment is a regulatory measure rather than a tax, asserting its legality.