The proposed fee, which would come on top of existing H-1B fees, is part of a notice of proposed rulemaking issued by DHS. The proposal is not yet final and will be subject to a 30-day public comment period following its publication in the Federal Register.
DHS estimates that the proposed fee could generate around $8.8 billion annually, based on an estimated 85,000 H-1B cap-subject petitions each year.
The fee would apply to H-1B petitions subject to the annual cap, including cases eligible for the advanced-degree exemption. However, certain cap-exempt petitions filed by institutions such as universities and qualifying nonprofit or government research organisations would not be covered.
The latest proposal comes after the Trump administration’s earlier attempt to impose a $100,000 H-1B fee was struck down by a federal court.
In September 2025, the administration introduced the $100,000 charge through a presidential proclamation, primarily affecting certain new H-1B petitions for workers outside the US. A federal judge later ruled the fee unlawful and vacated it nationwide. The government has appealed the decision.
Unlike the earlier $100,000 charge, the latest proposal is being pursued through executive rulemaking and the notice-and-comment process, rather than through a presidential proclamation. The move could still face legal challenges once the rule is finalised.
Why Indian IT stocks are in focus
The proposed fee could increase the cost for US employers hiring skilled foreign workers through the H-1B programme, potentially affecting companies that rely on H-1B visas to deploy talent in the US.
Indian technology companies have historically been among the biggest users of the H-1B programme, making any sharp increase in visa-related costs an important monitorable for the sector.
The proposal could also create uncertainty for Indian students and professionals in the US, particularly those transitioning from F-1 student status and OPT to H-1B status.
For employers, the key concern is whether the significantly higher cost of sponsoring new H-1B workers could influence hiring decisions, talent deployment and the economics of offshore-versus-onsite delivery models.
The proposed fee also comes at a time when companies and employees face uncertainty over the legal status and implementation timeline of the administration’s broader H-1B policies.
However, the immediate impact should be viewed cautiously, as the $103,265 fee is currently only a proposal and could be modified, delayed or challenged before taking effect.
IT stocks are the worst performers so far this year, falling over 19% versus a 7% decline in the benchmark Nifty 50 index.
