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The administration proposed a new $103,265 fee for employers hiring skilled foreign workers under the H-1B visa program.

The administration announced a new proposal to impose an additional $103,265 fee on every H-1B cap-subject petition. This charge, which would be paid by the employer at the time of filing, is intended to target the outsourcing-heavy model of the program. While tech leaders like Elon Musk have endorsed the scheme, critics argue it may replace skilled American workers with cheaper foreign workers who have less bargaining power. This proposal follows a previous attempt by the administration to impose a six-figure charge for workers outside the US, which was struck down by a federal judge. The new fee targets cap-subject petitions, including those eligible for the advanced-degree exemption. The impact on Indian professionals is expected to be significant, as 71% of the approved H-1B petitions in FY2024 were for people born in India. Experts suggest the fee will push companies to be more selective, applying only for workers who generate enough value to justify the cost. The proposal is currently open for public comment until September 24, 2026.

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