Administration Proposes $103,265 H-1B Fee Rule to Protect American Workers

The Trump administration on Monday released a proposed Department of Homeland Security regulation that would impose a $103,265 fee on certain H-1B visa petitions, escalating its push to reform the high-skilled worker program and protect American jobs. The rule, announced August 24, opens a 30-day public comment period. It marks the administration's second major attempt to make employers pay far more to hire foreign workers, after a federal court struck down an earlier version of the fee.

The H-1B program lets U.S. companies employ foreign professionals in specialty occupations, and it has long been one of the most contested corners of American immigration policy. Tech giants, hospitals, and universities rely on the visas, while critics argue the program drags down American wages and gets abused by outsourcing firms.

A Fee That Started With a Proclamation

The fight began in September 2025, when President Trump signed a proclamation imposing a flat $100,000 charge on new H-1B petitions. The fee took effect within days and covered the 2026 lottery along with any petitions filed after the proclamation's effective date.

That version did not last. In June 2026, a federal judge in Massachusetts vacated the fee, ruling that the executive branch had imposed what amounted to an unauthorized tax without the congressional approval the Constitution requires. The administration appealed the decision.

Rather than wait on the courts, the administration pursued a second path: formal rulemaking. The proposed regulation sets the fee at $103,265 and follows the standard federal process, starting with public comment and ending with a final rule that carries far more legal weight than a proclamation.

A Broader Reach Than the Original Fee

The proposed rule appears to go further than the original proclamation. Reports indicate the new fee structure would reach H-1B workers already in the United States, not just applicants seeking entry from abroad. That would make the program's costs far harder to avoid for the companies that lean on H-1B labor the most.

Supporters say the fee levels the playing field for American workers in technology, engineering, and other fields where H-1B holders are concentrated. The administration has framed the charge as a guardrail against a program it says has been gamed for years by firms importing cheaper labor.

Business groups and immigration advocates see it differently, warning that a six-figure fee would raise costs for employers, slow hiring, and push some companies to move work overseas. Tech industry associations are expected to flood the comment period with objections before the department finalizes the rule.

The fee would stack on top of existing filing costs, legal fees, and wage requirements, making a single H-1B hire one of the most expensive personnel moves an employer can make. For smaller firms that sponsor just a handful of visas each year, the math changes quickly.

What Happens Next

The 30-day comment window is the next battleground. Employers, industry groups, and advocates will get a chance to weigh in, and the department will have to address major concerns before issuing a final rule. Legal challenges are all but certain no matter what the rule says when it lands.

The Massachusetts ruling remains under appeal, so the courts could still settle the underlying question of whether the fee is a lawful charge or an unconstitutional tax. The administration is pressing forward on both fronts at once, building a regulatory record designed to survive judicial review.

If the rule survives, the H-1B program will become dramatically more expensive for the employers who use it, reshaping hiring decisions across the tech sector and beyond. If it falls, the administration will have made clear how far it is willing to go to reform the visa system. Either way, the fight over the H-1B fee is far from over.