The Trump administration has proposed a $103,265 fee on all H-1B cap-subject petitions. The new immigration rule closely mirrors a presidential proclamation from September 2025 that imposed a $100,000 fee on new H-1B entrants—which a federal judge struck down in June, calling it an intrusion on Congress’s taxing authority.
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The H-1B annual cap remains unchanged at 65,000 visa slots, plus 20,000 slots for advanced-degree holders from U.S. universities.
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Under this new rule, employers would still be competing for one of those 85,000 total visa slots per year, but now there is an added $103,265 fee applied to individuals both inside (i.e., already on an H-1B or other visa) and outside the U.S., not just new entrants from abroad.
The administration is justifying the fee under a new legal theory—that DHS can tax H-1B holders to fund immigration services government-wide, rather than to restrict admissions outright, as it argued in 2025. The Association plans to submit formal comments, and a final rule expected by year-end will likely face a legal challenge.
What This Means for Talent Pipelines
For CHROs, this cost reshapes how organizations source specialized talent.
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At $103,265 per petition, employers may reserve H-1B sponsorship for senior and hard-to-fill roles which would intensify competition and extend recruiting timelines in AI, semiconductors, and advanced manufacturing.
What to Watch For
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Member companies should prepare for greater scrutiny, on H-1B petitions and renewals.
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Enforcement is also increasing through DOL’s Project Firewall, USCIS mandatory site visits, ICE worksite inspections (running roughly 10x FY2024 pace), and EEOC’s “Anti-American Bias” initiative which targets employers seen as favoring foreign workers.
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This activity will only accelerate as midterms approach.
