The US Department of Homeland Security has proposed a new $103,265 fee for all H-1B cap-subject visa petitions, which could generate $8.8 billion annually and significantly impact technology companies, especially Indian IT firms.

The proposal follows a federal court ruling that struck down Trump’s earlier $100,000 fee, and it is now open for a 30-day public comment period before finalisation.

The Department of Homeland Security announced that the proposed fee would apply to all H-1B cap-subject petitions, including those eligible for the advanced degree exemption.

The fee must be paid at the time of filing and will be imposed in addition to existing fees. DHS estimates that with 85,000 cap-subject petitions annually, the measure could raise approximately $8.8 billion.

Officials explained that the revenue would help recover federal government costs associated with adjudication of immigration benefits, fraud detection, national security vetting, systems modernisation, records and fee collection operations, immigration court operations, consular visa processing, labour standards enforcement, and interagency coordination.

A spokesperson for US Citizenship and Immigration Services, Zach Kahler, stated that the fee is intended to ensure lawful immigration programs are funded without burdening taxpayers.

The proposal specifies that the additional fee will not apply to petitions exempt from the cap. These include filings by certain non-profit research organisations, government research bodies, and institutions of higher education. Universities, hospitals, and research-based institutions, which were affected by Trump’s earlier $100,000 proposal, will not be impacted under the new DHS plan.

The move comes after US District Judge Leo Sorokin ruled in June that Trump’s $100,000 fee was unlawful, declaring that only Congress has authority to impose taxes on visa applications. The earlier proposal was vacated entirely, and an appeals court upheld the ruling in July.

DHS has now sought to introduce the fee through formal rulemaking rather than presidential proclamation, which could strengthen its legal standing.

The statutory limit for new H-1B visas remains 85,000 annually, comprising 65,000 regular-cap visas and 20,000 for applicants holding a master’s degree or higher from US institutions. Of the 65,000 regular-cap visas, 6,800 are reserved for nationals of Chile and Singapore. H-1B visas are critical for US companies hiring foreign workers in specialised, high-skilled occupations, particularly in the technology industry.

Industry analysts warn that the proposed fee could significantly increase operating costs for Indian IT firms such as TATA Consultancy Services, Infosys, Wipro, HCL Tech, and Tech Mahindra.

These companies rely heavily on the H-1B program to deploy skilled professionals in the US. A fee of this magnitude could pressure profit margins, force firms to rethink staffing strategies, or pass costs on to clients, affecting competitiveness.

The proposal is expected to be published in the Federal Register on Tuesday, after which companies and workers will have 30 days to submit comments. Legal experts anticipate challenges to the rule, given the history of litigation surrounding Trump’s earlier fee.

DHS has acknowledged that small businesses sponsoring H-1B workers could face significant economic impact if the rule is finalised.

The development adds to uncertainty for Indian professionals and students in the US, particularly those transitioning from F-1 student status to H-1B. It also comes amid broader immigration reforms, including wage-based selection systems and tighter scrutiny of visa applications.

ANI