Trump admin proposes eye-popping new cost for companies hiring H-1B workers

The Trump administration unveiled a proposal on Monday to codify an unprecedented fee of more than $100,000 for cap-subject H-1B petitions for highly skilled foreign workers, replacing a charge first imposed by presidential proclamation last year that has thus far been blocked by a federal court.

The Department of Homeland Security’s proposed rule would charge $103,265 as an additional fee for every H-1B petition subject to the annual statutory cap, including petitions eligible for the advanced-degree exemption.

The worker visas are heavily relied on in the tech, education and research industries.

The fee would be used to cover the federal government’s costs of administering the legal immigration system, including actions carried out by DHS and the Department of Justice, Department of State and Department of Labor.

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“The proposed H‑1B fee is intended to recover the costs incurred across the federal government to adjudicate, vet, and support lawful immigration programs that otherwise must be funded by taxpayers,” U.S. Citizenship and Immigration Services spokesperson Zach Kahler said in a news release.

The fee, which was first temporarily imposed by President Donald Trump’s administration last year, was blocked by a federal judge in June in an order that barred the federal government from collecting the money.

An appeals court is reviewing the judge’s decision while a different court considers whether a challenge to the fee by a major business group was properly rejected.

The temporary fee increase expires next month, one year after it was issued. The proposed rule by DHS was posted for public inspection Monday and is scheduled to be published in the Federal Register on Tuesday. It would make the $103,265 fee permanent.

The charge could be finalized by the end of the year.

The H-1B program allows U.S. employers to hire foreign workers with training in specialty occupations, with 65,000 of these visas offered annually under the regular cap.

Another 20,000 are offered for workers with a master’s degree or higher from a U.S. institution, generally granted for up to three years but typically extendable to a total of six years. Those visas typically came with fees between $2,000 and $5,000 before Trump’s order, according to Reuters.

The proposed fee would apply to all cap-subject H-1B petitions, including petitions filed for some foreign students already in the United States seeking to change to H-1B status. It would not apply to cap-exempt H-1B petitions; routine extensions for current H-1B holders generally are not subject to the annual cap.

Trump has argued that the H-1B program is abused by many companies who replace American workers with cheaper foreign labor. But business groups and many U.S. companies have contended that the program is needed to address a lack of qualified American workers for certain jobs and to allow American firms to bring in the most skilled workers to support the U.S. economy.

According to court filings, about 70 employers had paid the $100,000 fee on a total of 85 visa applications as of late February.

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The fee is being challenged by the U.S. Chamber of Commerce of Democratic-led states and a coalition of labor unions and employers.

Those complaints could be altered to challenge the rule proposed this week once it is finalized.

The Trump administration has also ordered increased vetting of H-1B applicants and proposed a new visa selection process that would favor higher-skilled and better-paid workers.

Earlier this month, DHS added fees of up to $4,500 to applications to extend the stay of H-1B workers or to transfer employees based in other countries to the U.S.

Reuters contributed to this report.