The proposed regulation was issued by the Department of Homeland Security (DHS) on Monday and will be formally published in the Federal Register on Tuesday. It will open a 30-day public comment period, with the rule potentially being finalized by the end of the year.
The H-1B visa program allows US employers to hire foreign workers in specialized fields, including technology, education and research. The program provides 65,000 visas annually, along with an additional 20,000 visas for workers with advanced degrees. H-1B visas are generally approved for periods of three to six years.
The proposed fee represents a dramatic increase from the previous cost of obtaining an H-1B visa, which typically ranged between $2,000 and $5,000, depending on various factors.
Trump and other critics argue that companies misuse the H-1B program to replace American workers with cheaper foreign labor. Business groups, however, say the program is essential because some industries face shortages of qualified US workers and rely on foreign talent.
The proposed fee is already facing legal challenges. The US Chamber of Commerce, Democratic-led states, and a coalition of unions and employers have challenged the administration's authority to impose the charge.
A federal judge ruled in June that the fee was illegal and blocked the administration from collecting it. That decision is currently being reviewed by a Boston-based appeals court, while another court is considering a separate legal challenge.
The lawsuits argue that the president's authority to restrict the entry of foreign nationals does not allow the administration to override the law establishing the H-1B program. They also argue that the Department of Homeland Security cannot impose fees designed to generate government revenue without authorization from Congress.
The administration maintains that the charge is not a traditional tax and argues that courts have limited authority to question the president's power to restrict entry into the United States.
The move comes as the Trump administration continues its broader immigration crackdown. US Citizenship and Immigration Services data showed that employers registered for around 344,000 H-1B visas last year, more than 25% lower than in 2024 and less than half the 794,000 applications sought in 2023.
The administration has also introduced enhanced screening of H-1B applicants and proposed a new selection system that would favor higher-skilled and higher-paid workers. Earlier this month, DHS separately proposed fees of up to $4,500 for applications to extend H-1B workers' stay or transfer employees from other countries to the US.
