Article Summary

The Trump administration imposed a new $100,000 fee for certain H-1B visa applications, specifically targeting new applicants located outside the U.S. and effective September 21. This policy has prompted several major US companies, including Cognizant, Intuitive Surgical, Tata Consultancy Services, and Walmart, to pause or reduce H-1B sponsorships. The fee faces legal challenges, with opponents arguing it is cost-prohibitive and detrimental to US innovation.

TNP AI: Key Insights

This unprecedented fee hike fundamentally alters the cost-benefit analysis for employers seeking H-1B talent, particularly disadvantaging startups and smaller businesses who may find such a cost prohibitive. It signals a significant shift in the administration's approach to skilled immigration, moving towards a much higher financial barrier to entry.

Prior to this rule, H-1B application fees were considerably lower, primarily consisting of a base fee, ACWIA fee, fraud prevention and detection fee, and potentially a Public Law 114-113 fee, typically totaling a few thousand dollars at most. The $100,000 charge represents an exponential increase, far beyond previous administrative adjustments.

For tech companies and other industries reliant on H-1B talent, this fee creates immense pressure to localize hiring or explore alternative global talent markets, potentially driving skilled jobs outside the U.S. The outcome of the lawsuit filed by the US Chamber of Commerce will be critical in determining the longevity and enforceability of this controversial fee.