U.S. President Donald Trump’s administration on Monday (August 24, 2026) released a proposed regulation to codify an unprecedented fee of more than $100,000 on new H-1B visas for highly skilled foreign workers.

The fee, first temporarily imposed by Mr. Trump in 2025, dramatically raises the cost of visas that are heavily relied on in the tech, education and research sectors, spelling bad news for Indian techies and students who aspire to work/study in the U.S.

What is H1-B visa programme?

The H-1B programme allows U.S. employers to hire foreign workers with training in specialty fields. It offers 65,000 visas annually, with another 20,000 visas for workers with advanced degrees, approved for three to six years.

Mr. Trump, a Republican, and other critics of the H-1B program say it is abused by many companies who replace American workers with cheaper foreign labor. But business groups and many individual companies have said the visa program is needed to address a lack of qualified American workers for some jobs and to allow U.S. businesses to recruit top talent.

About 70 employers had paid the $100,000 fee on a total of 85 visa applications as ‌of late ⁠February, according to court filings, the Reuters reported

How will H1-B visa fee hike impact Indians

Those visas typically came with fees between $2,000 and $5,000 before the U.S. President’s order. The proposed rule by the U.S. Department of Homeland Security, posted in the Federal Register on August 24, would make a ⁠fee of $103,265 permanent. It could be finalised by the end of the year.

Indians account for the largest share of H-1B visa holders, making up 71% of all beneficiaries in FY2024. This move will significantly impact Indian technology workers who are hired by tech companies and others on H-1B visas.

The Hindu had earlier reported that a $100,000 surcharge would, in a majority of cases match or even exceed the yearly salaries earned by Indian H-1B workers. Since Indian professionals typically report lower median wages than their peers from other countries, they are likely to be hit the hardest, both in absolute numbers and as a share of total workers.

Who are exempted from fee hike

But the fee would not apply to visas granted to foreign citizens already in the United States on student visas, who make up a large share of new H-1B recipients, or to renewals of current visas.

Fee hike faces legal challenges

The fee hike is being challenged by the U.S. Chamber of Commerce, the largest U.S. business lobbying group, Democratic-led states and a coalition of unions and employers. Those lawsuits could be amended to challenge the rule proposed this week once it is finalized.

A federal judge in June 2026 ruled that the fee was unlawful and blocked the Trump administration from collecting it, much to the relief of Indian diaspora. A Boston-based appeals court is reviewing that decision while a different court considers whether a judge properly rejected a challenge to the fee by a major business group.

Amid Mr. Trump’s broader immigration crackdown, employers last year registered for about 344,000 H-1B visas, down more than 25% from 2024 and fewer than half of the 794,000 visas sought in 2023, according to data, opens new tab from U.S. Citizenship and Immigration Services.

The Trump administration has also ordered enhanced vetting of H-1B applicants and proposed a new ⁠visa selection process that would favor higher-skilled and better-paid workers. Earlier in August, the Department of Homeland Security in a separate rule added fees of up to $4,500, opens new tab to applications to extend the stay of H-1B workers or to transfer employees based in other countries to the United States.

The U.S. administration move is aimed at protecting American workers while ensuring that companies have a pathway to hire “truly extraordinary people” and bring them to the United States.

(With inputs from Reuters)

Published – August 25, 2026 12:41 pm IST