Trump Doubles Down On H-1B Visa Fee Hike, Proposes $103,265 Charge; What's The Current Fee And Impact On Indians?

The United States' Donald Trump administration on Monday released a proposed regulation to codify an over $100,000 H1-B visa fee for highly-skilled foreign workers. The release attempts to move towards formalising Trump's temporary 2025 proclamation, which was restricted by the courts.

The proposed $103,265 fee by the Department of Homeland Security (DHS), posted online in the Federal Register on Monday, will be formally published on Tuesday.

It will follow a 30-day public comment period. Given the timeline, the rule could be finalised by the end of the year. If it comes into effect, the fee will affect foreign professionals, especially Indians, as the visas are heavily relied on in the tech, education and research sectors.

Trump's 2025 proclamation expires in September this year, one year after it was issued. In June this year, a federal judge blocked the Trump administration from collecting the fee, terming it illegal.

What is the current H1-B visa fee?

The exact H1-B visa fee incurred by the US employer varies per case. Among several components of the fee are an application fee of $205, a USCIS Form I-129 petition fee of generally $780, an H-1B registration fee of $215, an ACWIA training fee ranging from $750 or $1,500, and a fraud prevention fee of $500.

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There can be an additional fee of $4,000 for certain large H1-B/L-1 heavy employees. Additionally, there is an extra optional change for premium processing. Overall, the visa fee varies between $2,000 and $8,000.

How does the fee hike affect Indians?

The regulation will impact first-time Indian applicants. If the proposed fee of $103,265 is finalised, a US employer will have to bear this six-figure cost for hiring Indians, who make up roughly 70% of H-1B beneficiaries.

The fee hike, thus, would demotivate American companies to hire Indian professionals. The move is also likely to impact Indian students who generally take the route from Optional Practical Training (OPT) authorisation to an H-1 B visa to transition from universities to companies.

After the H1-B visa fee hike, the employer could become more reluctant to sponsor graduates for H-1B status. Notably, the H-1B visa is for foreign professionals hired in specialised jobs, while the F-1 OPT programme lets foreign students work temporarily in roles related to their course of study.

What adds to the worries is the DHS's consideration of eliminating the 60-day grace period after an H-1B worker loses their job. If brought into effect, the existing visa holders could also lose it in case of layoffs or failure to secure a job as per requirements.

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Will all Indians be affected?

Certain categories of visa holders will not be affected by the proposed regulation.

Existing holders: The new regulation would not apply to existing visa holders like the engineers working in California.

Renewal and extensions: The visa holders who apply for renewal and extensions will also remain unaffected by the hike.

Transfer/ employer change: The professionals seeking transfer or changing their jobs would not be required to pay the additional fee.

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