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The Trump administration has proposed making a $103,265 fee on new H-1B visas permanent, reviving a measure that was blocked by a federal judge earlier this year. The proposed rule, released by the US Department of Homeland Security, would formalise the fee as the administration faces legal challenges over its authority to impose it. The move could significantly increase hiring costs for American employers relying on skilled foreign workers.

Fee Faces Legal Battle

The fee was first introduced temporarily by President Donald Trump last year and is due to expire in September. A federal judge ruled in June that the fee was unlawful and blocked the administration from collecting it. Appeals over that decision are still pending.

Under the proposed rule, the $103,265 charge could become permanent if the regulation is finalised, potentially by the end of the year.

The H-1B programme allows US employers to hire foreign workers in specialised fields. It provides 65,000 visas annually, along with another 20,000 for workers with advanced degrees. Before Trump's fee increase, employers typically paid between $2,000 and $5,000 in related visa fees.

The proposed charge would not apply to foreign students already in the US who obtain H-1B visas, or to renewals of existing visas.

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Businesses Challenge Move

The fee has faced opposition from the US Chamber of Commerce, Democratic-led states, unions and employers. They argue that the administration cannot use immigration powers to impose a fee of this scale without authorisation from Congress.

The Trump administration maintains that the charge is not a traditional tax and that the president has broad authority to restrict the entry of foreign nationals deemed detrimental to US interests.

Around 70 employers had paid the $100,000 fee across 85 visa applications by late February, according to court filings.

The administration has also ordered enhanced vetting of H-1B applicants and proposed a selection system that would favour higher-skilled and better-paid workers. Separately, Homeland Security has introduced additional fees of up to $4,500 for certain H-1B applications involving extensions or transfers.

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