The US Department of Homeland Security (DHS) has proposed a $103,265 fee for employers hiring highly skilled foreign workers through the H-1B visa program, marking a significant increase aimed at recovering federal costs related to immigration services. The proposal was announced Monday and is set to be published in the Federal Register on Tuesday.

This new fee follows a previous attempt by the Trump administration to impose a $100,000 charge on H-1B visa applications, which was blocked by a federal judge in Boston. The court had ruled that the administration overstepped its authority and violated the Administrative Procedure Act.

According to the DHS, the proposed fee is intended to recoup part of the expenses incurred by multiple federal agencies in processing and adjudicating immigration petitions and related naturalization services. The agency estimates that the fee would generate approximately $8.8 billion annually, assuming the full annual cap of 85,000 H-1B visas is reached.

Exemptions would apply under the proposal for petitions not subject to the cap, including those submitted by nonprofit research organizations, governmental research organizations, and institutions of higher education.

The DHS has opened a 30-day public comment period before the rule can be finalized. If enacted, the fee would place new financial pressures on sectors such as technology and finance, which rely heavily on the H-1B program to recruit top international graduates from US universities.

Industry observers and media reports have highlighted concerns that the fee increase could have unintended consequences. Analysts warn it may prompt some US companies to relocate jobs overseas, particularly in specialized areas like research and development, and potentially discourage international students from pursuing education in the United States.

Separately, the administration has taken additional immigration measures. Since January 2025, the US State Department has revoked over 175,000 visas. Reports indicate plans to cancel the business and tourism visas of up to 200,000 foreigners who have applied for or seek asylum in the US. This would represent the largest mass visa revocation in US history and is expected to face legal challenges.

The proposed H-1B fee and other immigration policy changes reflect ongoing tensions within the government’s approach to managing foreign labor and visa issuance amid broader debates on immigration enforcement and economic competitiveness.