Washington: Indian-American policy group Foundation for India and Indian Diaspora Studies (FIIDS) has urged the US government to reconsider a proposed additional fee of $103,265 for cap-subject H-1B petitions, warning that the move could hurt startups, weaken America’s technological competitiveness and push high-value jobs abroad.
FIIDS said the Department of Homeland Security (DHS) and the US Citizenship and Immigration Services (USCIS) should adopt a more balanced approach that protects American workers while preserving access to global talent.
The organisation said it supported legal, merit-based immigration, fair wages and strict action against fraud. It also acknowledged the costs involved in processing visa applications, preventing fraud, conducting national-security checks and administering the legal immigration system.
However, FIIDS said the proposed fee could make legitimate hiring economically unviable, particularly for startups operating with limited resources.
For a cash-strapped startup, a charge of more than $103,000 to hire a single skilled worker could significantly influence recruitment decisions, it said. Major technology companies sponsoring thousands of workers could face cumulative costs running into hundreds of millions of dollars.
“If employing critical talent in the United States becomes substantially more expensive than hiring workers abroad, companies could move jobs and investments out of the country,” FIIDS said.
The group also expressed concern over the combined impact of the proposed H-1B charge and an earlier proposed $100,000 fee linked to Optional Practical Training (OPT).
If both fees are imposed on the pathway from international education to practical training and H-1B employment, the overall burden could rise to $203,265, FIIDS said. Such a cost could undermine OPT’s role as a bridge between American universities and the US labour market.
“We recognise that DHS and USCIS need adequate resources to protect national security, prevent fraud and administer legal immigration. But a $103,265 H-1B fee could choke cash-strapped startups, while companies hiring thousands of H-1B workers could face hundreds of millions of dollars — and potentially close to a billion dollars — in additional costs,” said Khanderao Kand, FIIDS chief of policy and strategy.
“Combined with a potential $100,000 OPT fee, totalling $203,265, the policy risks making the student-to-work pathway effectively unaffordable,” he added.
FIIDS said the proposal comes at a time when the flow of international students to the US is already showing signs of decline. Citing Institute of International Education data, it said new international student enrolment fell by 17 per cent in autumn 2025.
The organisation also referred to a 2026 outlook by NAFSA, which projected that the US could see up to 111,000 fewer international students — a possible 9.5 per cent decline that could result in an economic loss of up to $3.4 billion.
FIIDS noted that USCIS already receives around 96 per cent of its funding through fees paid by applicants and petitioners. It urged Congress to use existing revenues, appropriations and reasonable fees to fund immigration administration, rather than placing an exceptional burden on a single legal immigration category.
“We urge DHS and USCIS to find a more proportionate funding approach, Congress to ensure adequate agency funding, and industry to make America’s talent needs clear,” Kand said.
“Protecting American workers and maintaining America’s technological leadership must go hand in hand.”
The H-1B programme enables US employers to hire foreign professionals for specialised occupations. Indian nationals have historically been the largest beneficiaries of the programme, particularly in technology, engineering and other skilled fields.
OPT allows eligible international students to gain temporary work experience related to their academic field. Students in science, technology, engineering and mathematics disciplines can seek an extension, making the programme a key route from US higher education to skilled employment.
(Inputs from IANS)