US proposes to hike H-1B fee by over $100,000, Indians likely to be hit

The US Department of Homeland Security (DHS) has proposed an additional fee of USD 103,265 (around Rs 99 lakh) for H-1B visa applications, a move that could significantly raise hiring costs for companies and make it more expensive to sponsor Indian professionals for jobs in the US.

The H-1B visa allows US companies to hire foreign workers in specialised occupations, particularly in fields such as technology, engineering and other skilled professions. Indian professionals account for a large share of H-1B beneficiaries, making them among those most likely to be affected by any sharp increase in the cost of the programme.

The proposed fee would be charged separately from existing H-1B petition fees and would apply to cap-subject applications, including those filed under the advanced degree exemption. It would not apply to cap-exempt petitions, such as those filed by certain universities, research organisations and government research bodies.

The proposal comes a month after a federal appeals court rejected a plea to pause a district judge's order that overturned the Trump administration's plan to impose a USD 100,000 fee on H-1B visa applications.

The Homeland Security Department has invited public comments on the proposal for 30 days, after which it will decide whether to issue a final rule.

Under current law, the H-1B programme is capped at 65,000 visas a year, with an additional 20,000 reserved for foreign workers who have obtained a master's degree or higher from a US institution.

The proposed H-1B fee hike coincides with the Trump administration preparing to revoke the B1 and B2 business and tourism visas of up to 200,000 foreigners who have applied for or are seeking asylum in the US, according to State Department documents obtained by The Associated Press and two US officials. If carried out, the move would be the largest mass visa revocation in US history and could face legal challenges.

WHY INDIANS MAY BE HIT

Indian professionals are among the biggest beneficiaries of the H-1B programme, particularly in the technology sector. US technology companies rely heavily on the visa to recruit skilled workers from India and other countries.

The proposal is not India-specific and would apply to eligible cap-subject H-1B petitions regardless of the worker's nationality. However, the high number of Indian professionals who use the programme means they could be disproportionately affected.

A fee of more than USD 100,000, on top of existing charges, could make it substantially more expensive for companies to sponsor H-1B workers. It could particularly affect employers hiring new foreign workers subject to the annual cap and potentially make companies more cautious about sponsoring candidates.

According to a notice published in the Federal Register, the USD 103,265 charge would be paid when the H-1B petition is filed and would come in addition to all other applicable fees.

The Homeland Security Department said the fee was intended to recover costs incurred across the federal government in adjudicating, vetting and supporting lawful immigration programmes.

US Vice President JD Vance defended the proposed move, saying, "If an American corporation needs workers, it should hire and train Americans."

US Citizenship and Immigration Services spokesperson Zach Kahler said the proposed fee would recover costs that would otherwise have to be funded by taxpayers.

DHS estimates the proposal could generate about USD 8.8 billion annually, based on a projected 85,000 H-1B cap-subject petitions a year.

IMMIGRATION ADVOCATES SLAM PROPOSED MOVE

The proposal has drawn criticism from immigration advocates.

US-based immigration attorney Emily Neumann called it an attempt to restrict legal immigration.

"Same number. New wrapper. Same playbook. Throw enough things at the wall to restrict legal immigration and eventually something might stick (this won't)," Neumann said.

Todd Schulte, president of FWD.us, a bipartisan advocacy organisation that lobbies for changes in immigration and criminal justice policies, said the proposed move could hurt the US' ability to attract and retain skilled workers from around the world.

The proposed H-1B fee hike remains subject to public comments before the Homeland Security Department decides whether to issue a final rule.