NEW DELHI: The US Department of Homeland Security (DHS) has proposed imposing a USD 103,265 fee on H-1B petitions, reviving a major immigration policy issue that could considerably increase the cost of employing foreign professionals in the United States, particularly Indian nationals who account for the bulk of H-1B beneficiaries.
The proposed regulation was published in the Federal Register on Monday. The fee would apply to H-1 B cap-subject petitions, including petitions eligible for the advanced-degree exemption.
The move comes after a similar fee announced last year was challenged in court and subsequently stopped. The proposals, however, are not yet final. Their precise scope and implementation will depend on the formal regulations, public comments, and potential legal challenges.
If implemented, the proposal could substantially increase the cost for US employers sponsoring H-1B workers and add to the financial burden on foreign nationals seeking employment in the country. It could also affect international students transitioning from US universities into employment under programmes such as Optional Practical Training (OPT), depending on the outcome of a separate proposal.
The proposed H-1B fee is particularly significant for India. Indian-born professionals accounted for 71 per cent of H-1B beneficiaries among petitions approved by US Citizenship and Immigration Services (USCIS) in 2024. USCIS approved 399,402 H-1B petitions that year.
The DHS proposal says the objective of the new fee is “revenue generation” to support the administration of the lawful immigration system across multiple US departments and agencies. The additional funds are intended to provide resources to USCIS for “adjudications, systems modernization, fraud detection and national security vetting”, as well as records, fee collection and coordination with other DHS components.
The proposal also envisages supporting immigration-related activities across several agencies, including USCIS, Customs and Border Protection, Immigration and Customs Enforcement, the Executive Office for Immigration Review, the State Department and the Department of Labor. These activities include immigration court proceedings, consular visa processing, labour standards enforcement and inspection and enforcement operations.
The latest proposals form part of a broader tightening of US immigration rules under the Trump administration. Earlier this month, DHS also proposed eliminating the existing 60-day grace period for certain H-1B workers whose employment ends before their authorised stay expires.
If finalised, the proposed change could require affected workers and their dependants to leave the US much sooner after employment termination, potentially creating additional uncertainty for foreign professionals.
For India, the measures carry particular significance. More than 5.2 million people of Indian origin live in the United States, according to recent estimates.
