Trump Administration Proposes $103,000 Fee on Skilled Foreign Worker Visas

2026-08-25 politics

Washington, Monday, 24 August 2026.
The Department of Homeland Security proposed a $103,265 fee on cap-subject H-1B visas, aiming to raise $8.8 billion annually to fund federal immigration enforcement and court operations.

Regulatory Proposal and Legal Context

The Department of Homeland Security (DHS) formally posted the proposed regulation on Monday, 24 August 2026, specifying a fee of $103,265 for employers seeking H-1B workers subject to the annual statutory cap [1][2]. This regulatory action follows a series of legal challenges, including a June 2026 ruling by the U.S. District Court for the District of Massachusetts which vacated a previous $100,000 fee established under Presidential Proclamation 10973 [5][6]. While the previous proclamation targeted workers from outside the country, the new proposed rule expands the fee structure to include individuals hired within the United States, marking a significant shift in enforcement strategy [2][4]. The proposal is currently open for public comment for 30 or 60 days following its publication in the Federal Register on 25 August 2026 [3][6].

Revenue Allocation and Agency Funding

DHS projects the new fee structure will generate approximately $8.8 billion in annual revenue, designated to fund various components of the federal immigration system [4][5]. The revenue distribution plan allocates funds across multiple agencies, with U.S. Citizenship and Immigration Services set to receive roughly $3.0 billion and the Executive Office for Immigration Review allocated $2.96 billion [6][8]. Additional portions are designated for the Department of Labor, Immigration and Customs Enforcement, and the State Department, aiming to cover costs for benefit adjudication, fraud detection, and national security vetting [5][8]. Based on the projected total, the allocation to Immigration and Customs Enforcement represents 11.932 of the total annual revenue expected from the fee [6].

Economic Impact and Industry Response

The proposed rule is expected to have a substantial economic impact on small entities, with DHS analysis estimating effects on 11,051 small businesses that filed cap-subject petitions in fiscal year 2025 [6]. These small entities represent approximately 76% of those filing cap-subject petitions, raising concerns that the fee could price smaller employers out of the talent pipeline entirely [5][6]. Certain employers, including higher education institutions, affiliated nonprofits, and governmental research organizations, remain exempt from the cap and would not be subject to this specific fee [5][8]. Industry advocates suggest that for many small firms, the fee represents a decision point to stop sponsoring foreign talent rather than a manageable line-item expense [5].

Litigation Risks and Implementation Timeline

Legal experts anticipate renewed litigation once the rule is finalized, with challenges likely focusing on statutory authority and the arbitrary nature of the fee scale [5]. The proposed rule requires further regulatory steps, including public comment, amendment, White House review, and final publication, meaning no effective date is currently set [5][6]. Concurrently, the existing Presidential Proclamation 10973 is scheduled to expire in September 2026, potentially rendering the previous $100,000 charge moot before this new regulation could take effect [6][8]. Until the rule is finalized and any legal stays are resolved, the $103,265 fee remains a proposal rather than implemented policy [3][6].

Sources

Immigration Policy H-1B Visa Fees