The New Price Tag
The Department of Homeland Security filed a proposed rule Monday that adds $103,265 to the cost of every H-1B visa petition. This new fee covers both the standard 65,000 visa slots and the 20,000 additional positions for advanced degree holders. The charge stacks on top of existing filing fees for the 85,000 cap-subject petitions filed each year. Per the Washington Times, officials expect this move to raise more than $8 billion annually. The money would help fund immigration enforcement operations at DHS and other federal departments.
However, this very specific dollar amount isnāt random.
DHS identified $8,777,488,035 in costs that it believes employers should cover rather than taxpayers. Divide that total by 85,000 petitions and round to the nearest five dollars to get the final figure. The administration says this price is long overdue for corporations that rely on foreign guest workers. According to RedState, taxpayers have quietly covered much of the federal governmentās expenses until now. Who exactly pays the bill when the government shifts costs? The math points squarely at the companies hiring abroad.
Why The Change Is Happening
USCIS spokesman Zach Kahler put the situation in plain terms regarding the shift. He noted that American taxpayers have been subsidizing a program mainly designed to serve corporate bottom lines. Across the federal government, the proposed H-1B fee aims to recoup expenses for adjudicating, vetting, and supporting lawful immigration programs that would otherwise rely on taxpayer funding. This statement comes directly from the regulatory filing released Monday.
DHS Secretary Markwayne Mullin believes the high fee will change hiring behavior for many firms. The official stated that the rule would compel companies to attempt hiring Americans before seeking foreign workers. Mullin noted that the new cost makes the U.S. worker more financially attractive to employers in a direct way. The department cited a study by labor economist George Borjas who found firms underpay H-1B workers by 16% compared to American workers. Multiplying that gap over a six-year visa term helped create the $103,265 number. Does that math actually change how a business owner thinks about their next hire?
Legal Ground And Next Steps
This proposal uses different legal authority than previous attempts to charge a fee. A September 2025 presidential proclamation tried to impose a $100,000 payment on certain petitions but a federal judge blocked it. That case remains pending in an appeals court as of this week. The new rule relies on statutory fee-setting authority that allows the department to recover full costs. RedState observes that this approach makes the rule significantly more difficult to challenge legally than a simple proclamation. Itās a different playbook this time.
The proposal is scheduled for publication in the Federal Register on Tuesday. It will then go through a full notice-and-comment period where the public can submit feedback. Nonprofits and universities would not have to pay this fee under the current plan. DHS said it believes at least 85,000 applications will still be filed despite the steep new price. For 2025, the department received more than 456,000 H-1B visa petitions total. The cap applies only to the private sector and not these exempt groups. Watch for the comment deadline on the Federal Register website.