WASHINGTON DC, WA, August 29, 2026 — On Monday the Department of Homeland Security (DHS) proposed a new $103,265 fee to apply for H-1B visas. The regulation would cover almost all workers falling under that program’s yearly limit. That comes on the heels of a June federal court ruling that invalidated an earlier version of the fee.
A Broader Fee Than Before
The new rule would also cover petitions for workers already in the country, rather than those slated to arrive based on applications. Which is a large extension from Trump’s original order, which only applied to travelers coming from overseas. Currently, standard fees paid by employers on most H-1B petitions range from $2,000 to $5,000.
The proposal says the revenue raised by the new fee would support a larger legal immigration process. Which includes support for the federal immigration courts and U.S. Citizenship and Immigration Services operations. The rule, which would require a bachelor’s or master’s degree, is subject to the annual visa cap.
The Earlier Court Defeat
In June, a Boston federal court deemed Trump’s initial $100 bill proclamation to be illegal. The U.S. Court of Appeals for the First Circuit also refused to stay that ruling while it considered whether to review the case. It was one of the administration’s biggest legal defeats on immigration decisions to date.
It is understood that approximately 70 employers had paid the reduced fee before a High Court injunction. The original declaration expires in September, 12 months after it was made. The new regulatory approach aims to cement the fee in a more lasting manner through formal rulemaking.
Industry Reaction
Business groups have long maintained that the fee makes the H-1B program “too expensive” for many employers. The U.S. Chamber of Commerce had previously sued over the initial proclamation, describing it as a “competitive disadvantage.” The program is relied on by tech, education and research sectors to fill many specialized roles.
The fee would deter firms from firing American employees and hiring cheaper foreign ones, advocates say. To do so, it would take direct aim at companies, with Commerce Secretary Howard Lutnick saying the policy should compel them to “incentivize training Americans” instead. Opponents argue that the tax could send higher-end technical work out of the country altogether.
What Comes Next
Public comment on the proposed regulation is now being sought before it can be implemented. As a result of the ruling in the earlier court case, legal challenges are expected. A related challenge from a large business group is being weighed by a different appeals court.
The H-1B program allows 65,000 visas each year — and an additional 20,000 for holders of a master’s degree or higher. The visas are usually good for three years, and can be extended to six. Current H-1B eligibility requirements and policy updates can be found on the U.S. Citizenship and Immigration Services Portal.
With the programme heavily utilised by universities and hospitals, a number of organisations have also warned they will face severe staffing disruptions. Others have already started looking into switching to other visa types in order to limit their exposure on the fee. Depending on how that public comment period plays out, the proposed rule could take effect relatively quickly post-finalization.
Countries with significant numbers of H-1B applicants are watching the proposal carefully. Immigration lawyers predict a flood of applications before any rule is finalized. That debate over the fate of the program is probably going to be one that continues into next fiscal year.
