The Trump administration has proposed a major increase in the cost of obtaining a new H-1B visa, with the suggested fee reaching more than $100,000. If implemented, the move could significantly increase recruitment costs for US companies and create fresh challenges for skilled professionals from India.
The US Department of Homeland Security has proposed a $103,265 fee for new H-1B visa applications. The proposal is now expected to enter a 30-day public comment period and could potentially be finalised before the end of the year.
The proposed charge follows an earlier $100,000 H-1B fee introduced by President Donald Trump. That measure was blocked by a federal judge and remains subject to ongoing legal proceedings.
Why Could the New H-1B Fee Affect Indians the Most?
The H-1B programme allows US employers to recruit foreign professionals for specialised positions in areas such as technology, engineering, education and research.
The annual H-1B quota includes 65,000 regular visas, along with another 20,000 visas for foreign workers holding advanced degrees from US institutions.
Indian professionals make up the largest group of H-1B workers. Data cited by AFP shows that Indians accounted for around 70% of H-1B workers in fiscal year 2025, while Chinese nationals represented about 12%.
As a result, any substantial increase in the cost of recruiting H-1B workers from overseas could disproportionately affect Indian professionals and the companies that employ them.
Who Would Not Be Affected by the Proposed Fee?
The proposed $103,265 charge would not apply universally to every H-1B worker.
According to the proposal, the new fee would not cover H-1B visas issued to foreign nationals who are already in the United States on student visas. It would also not apply to renewals of existing H-1B visas.
However, employers looking to bring skilled workers into the US from overseas could face a dramatically higher upfront cost.
From a Few Thousand Dollars to More Than $100,000
The proposed fee represents an extraordinary increase compared with the costs associated with the H-1B programme before Trump’s earlier order.
Historically, H-1B-related fees generally fell within a range of roughly $2,000 to $5,000, depending on the circumstances.
A $103,265 charge would therefore represent a massive jump in the financial burden associated with hiring an eligible foreign worker.
For US businesses that regularly recruit skilled professionals from abroad, the additional expense could influence hiring decisions and potentially encourage companies to prioritise candidates already authorised to work in the country.
Trump Administration Says H-1B System Needs Reform
The Trump administration has argued that the H-1B system has been misused by some companies to employ foreign workers at lower costs instead of hiring American employees.
Officials have also argued that imposing a much higher fee could discourage employers from selecting H-1B candidates when qualified US workers are available.
The administration views the proposed charge as part of a broader effort to change how companies use the programme and give greater preference to American workers.
US Businesses Oppose Restrictions on Skilled Workers
Business groups have taken a different position, arguing that the H-1B programme is important for companies facing shortages of highly skilled workers.
Industries such as technology, engineering and research frequently depend on access to specialised talent from around the world. Companies argue that restricting the programme or making it prohibitively expensive could make it harder for them to fill critical positions.
This debate places Indian professionals at the centre of the issue because they account for the overwhelming majority of H-1B workers.
H-1B Fee Increase Faces Legal Challenges
The proposed fee could also face a legal battle.
A federal judge previously blocked the administration’s earlier $100,000 H-1B fee, ruling in June that the government had exceeded its legal authority. Other legal challenges surrounding the fee remain ongoing.
The Trump administration, however, maintains that the charge should not be treated as a tax and argues that the president has the authority to impose restrictions affecting the entry of foreign nationals into the United States.
What the Proposal Could Mean for Indian IT Professionals
If the $103,265 fee eventually becomes permanent, its biggest immediate impact could be felt by US employers seeking to recruit H-1B professionals from outside America.
For Indian technology workers and other highly skilled professionals hoping to move to the US through the H-1B route, the proposal could make overseas hiring more difficult and expensive.
However, the fee would not apply to every H-1B situation, particularly existing visa renewals and certain applicants already in the US on student visas.
For now, the proposal remains subject to public comments and potential legal challenges. Its final form — and whether it survives in court — will determine how significantly it changes the future of the H-1B programme and the prospects of Indian professionals seeking US employment.