Full Breakdown
Trump Administration Proposes $103,265 Fee for H-1B Visa Petitions
8/27/2026, 2:04:41 AM
Proposed $103,265 H-1B Fee Unveiled
On August 25, 2026, DHS published a proposed rule adding a $103,265 surcharge to every cap-subject H-1B petition. The fee applies to both the regular 65,000-visa cap and the 20,000-visa advanced-degree exemption; cap-exempt petitions (universities, government labs, certain nonprofits) are unchanged. A 30-day public-comment period runs until September 24, 2026.
Background and Legal History
President Donald Trump announced a $100,000 fee for new H-1B entrants in September 2025. A federal district court struck it down on June 8, 2026, deeming it an unlawful tax. The administration appealed, but the First Circuit declined to reinstate the fee. The new proposal relies on DHS’s fee-setting authority and follows the standard notice-and-comment process.
Economic Impact Estimates
DHS estimates the charge would generate about $8.8 billion annually, assuming 85,000 cap-subject petitions, or $74.9 billion over ten years. Research by Britta Glennon (University of Pennsylvania) notes that 11,051 small businesses—roughly 76 % of the 14,541 small entities that filed cap-subject petitions in fiscal 2025—could face “significant economic impact,” including lower profitability, reduced patenting, and fewer acquisitions or IPOs.
Official Statements from DHS/USCIS
Zach Kahler, a DHS spokesperson, said the fee would help fund immigration-related activities across DHS, the Departments of Justice, State, and Labor.
Criticism from Experts and Business Groups
Todd Schulte, president of FWD.us, called the charge a “massive tax on American businesses” that could push jobs overseas. David Bier of the Cato Institute pointed to the earlier $100,000 fee’s near-90 % drop in filings and a $28 million revenue loss, questioning the rule’s fiscal logic.
Potential Effects on Startups and Universities
Glennon warns large firms can shift hiring to foreign affiliates, while startups lack that flexibility. Although universities are cap-exempt, fewer international graduates may pursue H-1B pathways, weakening a key talent pipeline.
Conflicting Reports & Gaps
DHS projects $8.8 billion in annual revenue, while Bier cites the prior fee’s failure to raise revenue. No definitive data exist on how many petitions would be abandoned under the new fee, leaving the expected reduction in filings uncertain.
Verbatim Quotes
- “When multinational companies can’t access H-1B visas, they actually become much more likely to open a foreign affiliate abroad or expand hiring of their foreign affiliates,” — Britta Glennon
- “Small companies have fewer options, and so basically what we see for them is that it just hits their profitability and their success because, especially for startups, talent is such a huge part of whether they are able to succeed,” — Britta Glennon
- “Either way, the country loses talent and jobs,” — Elizabeth Ricci, immigration attorney
- “The administration claims the new fee will be a ‘cost recovery mechanism,’ even though the first fee led to a nearly 90 percent reduction in filings and a $28 million loss in revenue.” — David Bier
What’s Next
The proposed rule will appear in the Federal Register on August 24, 2026. After the comment period ends on September 24, 2026, DHS will review feedback before issuing a final rule. Legal challenges are expected.
