Explained: What Trump's proposed $100,000 H-1B fee means for Indian workers and US employers

The US has proposed a rule that would formalise a $100,000 fee on new H-1B visas for highly skilled foreign workers, reviving a measure President Donald Trump first introduced last year.

The fee has been tied up in court after a federal judge ruled in June that the administration had exceeded its authority and blocked the government from collecting it. The case is now being reviewed by a Boston-based appeals court while a separate legal challenge is pending in Washington, DC.

The proposed rule could have key implications for Indian technology professionals and students seeking to work and eventually settle in the US, as well as for the companies that rely heavily on H-1B workers.

What is the H-1B visa?

The H-1B is a US work visa for highly skilled foreign professionals employed in specialised occupations. The programme is widely used by technology companies, universities, research institutions, and other employers that hire workers with specialised expertise.

Indian nationals account for a significant share of H-1B beneficiaries, making changes to the programme particularly important for Indian technology professionals.

What is the proposed $100,000 fee?

Trump first imposed the $100,000 charge through a temporary proclamation last year. The administration argued that the measure was necessary to restrict the entry of foreign workers whose presence could be detrimental to US interests. The new regulation seeks to codify the fee through the federal rulemaking process.

The fee would apply to new H-1B visas and would come on top of the existing costs employers already incur when sponsoring workers. About 70 employers had paid the $100,000 fee for 85 visa applications as of late February, according to court filings.

Why is the fee controversial?

Business groups, Democratic-led states, unions, and employers have challenged the fee in court.

The lawsuits argue that the president's authority to restrict the entry of foreign nationals does not allow the administration to override the law that created the H-1B programme. They also argue that the Department of Homeland Security cannot impose fees or other revenue-generating charges without authorisation from Congress.

The Trump administration, however, says the $100,000 charge is not a conventional tax and that courts have limited authority to question the president's power to restrict entry into the US.

How much does an H-1B visa already cost?

The $100,000 charge would be an additional cost. Even without it, sponsoring an H-1B worker can cost an employer several thousand dollars. A standard new H-1B petition can involve the registration fee, Form I-129 filing fee, ACWIA training fee, fraud-prevention fee, and asylum programme fee.

Certain employers with at least 50 US employees and more than half their workforce in H-1B or L-1 status can also face an additional $4,000 fee. The charge is particularly relevant to some large IT consulting and staffing companies. Employers may also choose to pay for premium processing and legal services, further increasing the overall cost.

Does the worker have to pay the $100,000?

Generally, H-1B petition and sponsorship costs are employer expenses rather than costs that individual workers are expected to bear. That means the proposed $100,000 charge would primarily increase the cost for firms seeking to hire foreign workers, although employers' hiring decisions could have a knock-on effect on prospective H-1B workers.

For Indian professionals, the bigger concern could therefore be whether companies become less willing to sponsor new H-1B workers because of the sharply higher cost.

Why does this matter for Indian workers?

Indian professionals are among the largest groups using the H-1B programme. Higher sponsorship costs could affect technology professionals seeking to move to the US, students hoping to transition from US universities into employment and workers seeking long-term career opportunities in the country.

The impact could be significant for industries that rely heavily on H-1B talent, including technology, education, and research.

Are there other H-1B changes?

Yes. The proposed $100,000 fee is part of a broader tightening of the H-1B system under the Trump administration.

US employers registered for about 344,000 H-1B visas last year, down more than 25% from 2024 and less than half the roughly 794,000 registrations recorded in 2023, according to US Citizenship and Immigration Services data.

The administration has also ordered enhanced vetting of H-1B applicants and proposed a new visa selection process that would favour higher-skilled and higher-paid workers.

Earlier in August, the Department of Homeland Security separately proposed fees of up to $4,500 for applications involving H-1B workers extending their stay in the US or employees being transferred from overseas.

What happens next?

The $100,000 fee remains subject to ongoing litigation. A federal judge has already blocked its collection, and an appeals court is reviewing that decision. The proposed regulation could also face fresh legal challenges after it is finalised. The organisations and states that have already challenged the fee could seek to amend their lawsuits to challenge the new rule.

For Indian students and professionals, the key question is therefore not simply whether the $100,000 fee exists, but whether it ultimately survives the ongoing legal and regulatory challenges.