Trump administration proposes $100,000 fee for H‑1B visas

Donald Trump's administration has released a draft regulation that would require employers to pay a one‑off charge of more than $100,000 for every new H‑1B temporary skilled‑worker visa they file. The fee would be added to the existing filing costs of $2,000 to $5,000 and would apply regardless of whether the petition is ultimately approved.

The mechanics of the proposal

The rule, published by the Department of Health and Human Services in the Federal Register, opens a 30‑day comment period for businesses, advocacy groups and the public. If finalized, the levy would affect not only overseas applicants but also foreign nationals already in the United States on student visas, a segment that has supplied a growing share of H‑1B recipients in recent years.

Critics argue the measure will hurt the tech sector, which relies heavily on the programme. In 2023 the United States issued roughly 85,000 H‑1B visas, but employers submitted more than 340,000 petitions, prompting a lottery each April. About three‑quarters of approved visas go to workers born in India, with China a distant second.

Industry and political backlash

Silicon Valley giants have long defended the H‑1B system as a pipeline for global talent. Billionaire Elon Musk and other tech leaders have praised the visas for keeping the United States at the forefront of innovation. At the same time, bipartisan criticism has persisted, with some lawmakers describing the programme as a form of “indentured servitude”.

"It's been hugely abused," said Hal Salzman, a professor of planning and public policy.

Senators from both parties have introduced legislation to raise the prevailing wage floor for H‑1B workers and to require employers to post job openings on a Department of Labor portal before filing a petition. A separate Department of Labor proposal in March would double the minimum wage percentile from the 17th to the 34th, still below median U.S. wages for comparable roles.

Supporters of the fee argue it targets the profit margin that companies extract from foreign workers, rather than directly raising wages. "What raising the fee does is instead of raising the wages of the H‑1B workers, it attacks the profitability that the employers see in those workers," said Ron Hira, an associate professor at Howard University.

Even with the steep price tag, some large firms may absorb the cost. At a six‑year visa term, the $100,000 fee works out to roughly $16,000 to $17,000 per year, a sum that could be justified if a company expects to earn $30,000 or more annually from the employee.

What comes next?

The draft rule will remain open for comment until early June. If the administration moves forward, the final regulation could be published later this year, giving employers months to adjust hiring strategies. Companies may pivot to alternative visa categories, increase reliance on domestic hiring, or lobby for legislative changes.

For workers, the proposal adds another layer of uncertainty. H‑1B holders already depend on their employers for legal status; a higher cost could reduce the number of new visas granted, tightening the pool of opportunities for foreign engineers and programmers.

Overall, the initiative underscores a broader debate over how the United States balances the demand for specialised tech talent with concerns about labour standards and domestic employment.