US proposes $103,265 H-1B fee, raising concerns for Indian professionals

New Delhi: The US Department of Homeland Security (DHS) has proposed a $103,265 fee on H-1B petitions, potentially raising the cost of hiring foreign professionals in the United States, with Indian nationals likely to be among the most affected as they make up the majority of H-1B beneficiaries.

The proposal was published in the Federal Register on Monday and would cover cap-subject H-1B petitions, including those eligible for the advanced-degree exemption, The New Indian Express reported.

The move follows a similar fee announced last year that was challenged in court and later halted. However, the latest proposal is not yet final. Its scope and implementation will depend on the final regulations, public feedback and possible legal challenges.

If approved, the fee could significantly increase expenses for US employers sponsoring H-1B workers while adding to the financial pressure faced by foreign professionals seeking employment in the country. It could also have implications for international students moving from US universities into employment through programmes such as Optional Practical Training (OPT), depending on the outcome of a separate proposal.

The measure has particular implications for India. Indian-born professionals accounted for 71% of H-1B beneficiaries among petitions approved by the US Citizenship and Immigration Services (USCIS) in 2024.

According to DHS, the proposed fee is primarily intended to generate revenue for the administration of the lawful immigration system across various US departments and agencies. The additional funds would support USCIS functions such as petition adjudication, modernising systems, fraud detection and national security screening, besides records management, fee collection and coordination with other DHS agencies.

The proposal also seeks to fund immigration-related operations involving 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 services, labour standards enforcement and inspection and enforcement operations.

The proposed fee is part of a wider tightening of US immigration policies under the Trump administration. Earlier this month, DHS proposed scrapping the existing 60-day grace period available to certain H-1B workers whose employment ends before their authorised stay expires.

If that proposal is also finalised, affected workers and their dependents could be required to leave the US sooner following the loss of employment, increasing uncertainty for foreign professionals.

The latest measures are particularly significant for India, with more than 5.2 million people of Indian origin estimated to be living in the United States.