Research

Visa and immigration policy: New $100,000 H-1B fee

Visa stock centered

In 2025, the Trump administration imposed a new $100,000 fee on H-1B visas.

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Fee aims to constrain H-1B program but US-based applicants exempted

On September 19, President Trump issued a proclamation that “the entry into the United States of aliens as nonimmigrants to perform services in a specialty occupation under [the H-1B visa program], is restricted, except for those aliens whose petitions are accompanied or supplemented by a payment of $100,000.”1

The proclamation was explicitly framed as hostile to the H-1B visa program as it stands, citing complaints about employers abusing it by hiring international workers, rather than American citizens, in order to suppress salaries. The proclamation also alleges that some abuses amount to a national security threat. It framed the imposition of a fee as a mechanism for combating abuses “while still permitting companies to hire the best of the best temporary foreign workers.”

Initially, it appeared that the fee would apply to all future H-1B petitions, but the US Citizenship and Immigration Service (USCIS) issued further guidance on October 20, 2025, explaining the fee only applies to new H-1B petitions for individuals who are outside the United States.2 Anyone trying to renew their existing H-1B or change their status to an H-1B while already in the country would not be subject to the fee. As it is common for students and visitors who are already in the US to transition to H-1B visas, this clarification removed a major potential barrier to their remaining in the US.

Early court ruling affirms fee’s legality

Nevertheless, the proclamation could impose severe burdens on employers who bring in international talent by sponsoring H-1B visas and could likely result in many employers declining to hire individuals from abroad.

Soon after the release of the proclamation, the Association of American Universities (AAU) and the US Chamber of Commerce partnered to sue the Trump administration, arguing the fee would inflict “significant harm” on businesses and institutions of higher education because they would either “be forced to ... dramatically increase their labor costs or hire fewer highly skilled employees for whom domestic replacements are not readily available.”3

However, on December 23, 2025, the US District Court for Washington, DC ruled in favor of the federal government. The judge determined that the $100,000 fee falls under the broad authority that 8 USC 1182(f)4 gives to presidents to restrict the entry of foreign nationals if they believe their admittance “would be detrimental to the interests of the United States.”5

AAU and the Chamber of Commerce quickly filed a motion to appeal the decision. There are also two other lawsuits winding their way through the court system, one led by the Global Nurse Force and another led by California Attorney General Rob Bonta with a coalition of 20 other attorneys general.


References

  1. Presidential proclamation 10973, “Restriction on entry of certain nonimmigrant workers,” September 19, 2025, https://www.federalregister.gov/d/2025-18601.
  2. USCIS, “Presidential proclamation on restrictions on entry of certain nonimmigrant workers,” October 20, 2025, https://www.uscis.gov/newsroom/alerts/presidential-proclamation-on-restriction-on-entry-of-certain-nonimmigrant-workers.
  3. Chamber of Commerce and AAU v. DHS, October 24, 2025, see below.
  4. 8 USC 1182(f) “Whenever the President finds that the entry of any aliens or of any class of aliens into the United States would be detrimental to the interests of the United States, he may by proclamation, and for such period as he shall deem necessary, suspend the entry of all aliens or any class of aliens as immigrants or nonimmigrants, or impose on the entry of aliens any restrictions he may deem to be appropriate. Whenever the Attorney General finds that a commercial airline has failed to comply with regulations of the Attorney General relating to requirements of airlines for the detection of fraudulent documents used by passengers traveling to the United States (including the training of personnel in such detection), the Attorney General may suspend the entry of some or all aliens transported to the United States by such airline.”
  5. Chamber of Commerce and AAU v. DHS, December 23, 2025, see below.

Documents

Chamber of Commerce and AAU v DHS, amended complaint, October 25, 2025 (.pdf, 532 kb) Chamber of Congress and AAU v DHS, opinion, December 23, 2025 (.pdf, 606 kb)

Cite this resource

AIP Policy Research, “New $100,000 H-1B fee,” Visa and immigration policy guide, American Institute of Physics, 2026, https://www.aip.org/research/visa-immigration/h-1b-fee.

Last updated

March 7, 2026


AIP Policy Research issued a primer shortly after Trump’s proclamation explaining the authorities invoked to issue it and how it might be challenged.