Feds Propose New $103K H-1B Visa Fee

Employers who use the H-1B visa program to fill specialized roles face a new $103,265 application fee after the Trump administration unveiled a proposed rule targeting the program.

The Department of Homeland Security posted a proposed regulation Aug. 24 imposing the fee on most new H-1B petitions.

Publication of the proposal opened a 30-day public comment period before any final rule takes effect.

The proposal follows a June ruling by a federal judge that blocked the administration’s previous plan to impose a $100,000 fee on work visa applications.

The administration’s request to keep the fee in place while it appealed was denied by the First Circuit Court of Appeals last month.

The new fee applies to H-1B petitions subject to the program’s annual statutory cap, including those eligible for the advanced-degree exemption—a broader scope than the administration’s original approach.

Scope

DHS is now pursuing the same outcome through formal rulemaking—a process explicitly authorized under federal law, which officials believe puts the new fee on firmer legal footing.

According to the agency, revenue from the fee will fund the cost of administering the broader legal immigration system, including work carried out by DHS along with other federal agencies.

The new proposal is both broader and narrower than last year’s proclamation.

It applies to petitions for workers already inside the U.S., not just new hires entering from abroad.

It applies to petitions for workers already inside the U.S., not just new hires entering from abroad—closing a gap employers used to plan around the earlier fee.

At the same time, universities, nonprofit research institutions, and hospitals—heavy users of the H-1B program—will be exempted under the new rule, a carve-out that wasn’t part of the original proclamation.

The fee stacks on top of existing H-1B costs, which historically ranged from about $2,000 to $10,000 per petition once legal and processing fees are included.

Economic Implications

Connecticut employers averaged roughly 1,100 new H-1B approvals annually over the past decade, concentrated in industries such as technology, biotech, pharmaceuticals, higher education, and advanced manufacturing.

Those sectors already compete for talent amid more than 86 open jobs statewide.

The high fees will be especially burdensome for startups and small and midsize businesses.

Business groups, including CBIA and the U.S. Chamber of Commerce, previously estimated that a fee at this scale could cost Connecticut employers roughly $110 million in additional annual costs if applied broadly.

The high fees will be especially burdensome for startups and small and midsize businesses that lack the resources of larger multinational competitors.

Research shows that when employers can’t secure H-1B talent domestically, many respond by shifting the work—and the jobs that go with it—overseas rather than hiring more American workers.

What Employers Should Know

With the rule still in proposal form, employers have a window to weigh in before it’s finalized.

Businesses that sponsor H-1B workers, or plan to in upcoming lottery cycles, should:

• Submit comments during the 30-day public comment period
• Review current and pipeline H-1B petitions to understand potential exposure under the new fee structure
• Watch for anticipated legal challenges, which could again delay or block implementation
• Track related state-level developments, including Connecticut legislation proposed this year allowing employers to offer visa-fee repayment agreements tied to multiyear employment commitments

The rule’s timeline remains uncertain, and further litigation is considered likely.

CBIA will continue monitoring the proposal and its potential impact on Connecticut employers.