The Trump administration has proposed a regulation to make permanent a $103,265 fee for new H-1B visas, a measure that was previously blocked by the courts. The proposed rule, posted in the Federal Register on Monday, would raise the cost of visas heavily relied on in the tech, education, and research sectors.
H-1B Program Under Fire
The H-1B program allows U.S. employers to hire foreign workers with training in speciality fields and offers 65,000 visas annually, with an additional 20,000 for workers with advanced degrees, approved for three to six years. The program has been a target of criticism from President Donald Trump and other critics who claim it is abused by companies that replace American workers with cheaper foreign labour.
Debate Over Visa Fees
The proposed fee of $103,265 is a dramatic increase from the previous fees of $2,000 to $5,000. The Trump administration has maintained that the fee is not a traditional tax and that courts have little power to question the president's authority to restrict entry into the country. The fee would not apply to visas granted to foreign citizens already in the United States on student visas, who make up a large share of new H-1B recipients, or to renewals of current visas.
Legal Challenges Mount
The proposed rule is being challenged by the U.S. Chamber of Commerce, the largest U.S. business lobbying group, Democratic-led states, and a coalition of unions and employers. Those lawsuits claim that Trump's power to restrict entry does not allow him to override the law that created the H-1B visa program. The states and groups that sued also say that the Department of Homeland Security cannot impose fees, taxes, or other means of generating revenue for the United States without permission from Congress.
Impact on Employers and Workers
About 70 employers had paid the $100,000 fee on a total of 85 visa applications as of late February, according to court filings. The Trump administration has also ordered enhanced vetting of H-1B applicants and proposed a new visa selection process that would favour higher-skilled and better-paid workers. Employers last year registered for about 344,000 H-1B visas, down more than 25% from 2024 and to fewer than half of the 794,000 visas sought in 2023, according to data from U.S. Citizenship and Immigration Services.
What's Next
The proposed rule could be finalized by the end of the year. The lawsuits challenging the fee will likely be amended to challenge the rule proposed this week once it is finalized. The outcome of this case will have significant implications for the H-1B program and the thousands of foreign workers who rely on it to work in the United States.
Source: Joy Online
