The Trump administration proposes over $103,000 fee for H1-B visas that would harm small businesses

Key Points:

• The Department of Homeland Security (DHS) proposed a $103,265 fee on top of existing costs for H-1B visa filings, potentially causing significant economic harm to over 11,000 small businesses, mostly startups, by altering the visa program's economics and favoring large companies.
• Experts argue the fee could lead multinational firms to offshore jobs by hiring abroad rather than bringing foreign workers to the U.S., while startups would struggle more due to fewer alternatives, negatively impacting their innovation and growth prospects.
• This proposal follows a similar, but legally challenged, attempt by the Trump administration to impose a six-figure fee on H-1B workers; DHS is now pursuing the fee through a formal rulemaking process to improve its chances of legal survival.
• DHS justifies the fee as cost recovery for immigration-related government expenses, estimating $8.8 billion annually, but critics highlight a contradiction: if the fee deters applications, expected revenue may not materialize, ultimately harming U.S. talent and job markets.
• The fee could shift the H-1B visa pool toward more senior-level workers at large companies, reducing opportunities for entry-level foreign talent and discouraging international students from pursuing U.S. education, which would affect universities and the broader talent pipeline.