Tech Industry Pushes Trump Administration to Withdraw $103,265 H-1B Visa Fee Proposal
Meta description: Major U.S. technology companies are urging the Trump administration to withdraw a proposed $103,265 H-1B visa fee, warning it could make it harder for businesses to recruit highly skilled international workers.
The U.S. technology industry is pushing back against a proposed $103,265 fee for certain new H-1B visa applications, arguing that the measure could significantly increase the cost of hiring highly skilled international workers and affect the ability of American companies to compete for global talent.
The opposition comes as the Trump administration continues to change the rules surrounding the H-1B visa program, which has become an important issue for technology companies, startups, international workers and U.S. employers.
Tech Industry Challenges Proposed H-1B Fee
TechNet, an industry association representing major technology and artificial-intelligence companies, submitted comments urging the Department of Homeland Security (DHS) to withdraw its proposed fee.
According to the Wall Street Journal report, TechNet represents companies including major internet platforms and AI companies such as OpenAI and Anthropic. The organization argues that the proposed fee could make it more difficult for U.S. companies to recruit specialized workers from around the world.
The proposed $103,265 charge would apply to H-1B cap-subject petitions and would be added to other existing immigration-related fees.
Tech industry representatives have argued that access to international talent is particularly important in areas such as artificial intelligence, software development, engineering and advanced technology.
The debate is therefore connected not only to immigration policy but also to the broader competition between the United States and other countries for highly skilled workers.
What Is the New $103,265 H-1B Fee?
The Department of Homeland Security proposed the $103,265 fee in August 2026 as part of a formal rulemaking process.
According to the Federal Register, DHS estimates that approximately 85,000 cap-subject H-1B petitions could be subject to the new fee annually. The agency estimates that the proposal could generate about $8.8 billion in annual revenue.
The proposed charge would apply to cap-subject H-1B petitions, rather than every type of H-1B petition.
DHS says the fee is intended to recover costs associated with administering the U.S. lawful immigration system across several federal agencies.
The agency also argues that employers seeking H-1B workers can absorb the additional cost and that the fee would help finance immigration-related administration.
Why Technology Companies Are Concerned
For technology companies, the main concern is the potential cost of recruiting international workers.
An additional fee exceeding $100,000 could represent a substantial expense for startups, smaller technology companies and other employers that compete with large corporations for engineers, researchers and specialized technical workers.
TechNet has argued that the proposal could make it harder for U.S. businesses to access the global talent needed for innovation.
The organization has also connected the issue to the international AI competition between the United States and China, arguing that restrictive immigration policies could affect America's ability to attract researchers and technical specialists.
The H-1B program has historically played an important role in allowing U.S. companies to employ foreign workers in specialty occupations. Established by Congress in 1990, the program has become particularly significant for the technology industry.
Trump Administration Says H-1B Program Needs Reform
The Trump administration has presented a different rationale for its H-1B policies.
The White House says the program has been abused by certain employers and outsourcing companies and argues that some businesses have used lower-paid foreign workers in ways that can affect American workers' wages and employment opportunities.
The administration has therefore pursued several changes intended to increase scrutiny of H-1B applications and place greater emphasis on higher-skilled and higher-paid workers.
The White House said its weighted H-1B selection system for fiscal 2027 resulted in a larger share of registrations involving beneficiaries with U.S. master's degrees or higher. It also reported that registrations associated with the two highest wage levels represented approximately 46.3% of selections, while the lowest wage level represented 17.8%. These figures are the administration's reported data and reflect its assessment of the policy's effects.
$100,000 H-1B Payment Remains a Separate Issue
The proposed $103,265 fee should not be confused with the $100,000 H-1B payment requirement introduced by the Trump administration in 2025.
In September 2026, President Donald Trump extended that restriction for another 12 months. Under the proclamation, certain new H-1B workers entering the United States from abroad are subject to a $100,000 payment unless an applicable exception applies.
The administration said more than 700 petitions had been accompanied by the $100,000 payment since the original restriction took effect.
The two measures have different legal and administrative foundations. The $100,000 payment stems from a presidential proclamation, while the $103,265 charge is part of a DHS proposed rulemaking process.
That distinction is important because the proposed $103,265 fee is still subject to the federal regulatory process.
Legal Challenges Add Uncertainty
The H-1B fee debate has also moved into the courts.
A federal judge ruled in June 2026 that the Trump administration's $100,000 H-1B fee was unlawful. The government has continued defending the policy through the legal process, while the administration subsequently extended the underlying restriction.
The proposed $103,265 fee could face separate legal challenges if DHS ultimately adopts the measure.
The formal rulemaking process, however, provides companies, trade associations and other organizations an opportunity to submit public comments before the government makes a final decision.
Potential Impact on Startups and AI Companies
The proposed fee could be particularly significant for companies operating in fast-growing technology sectors.
Artificial intelligence companies are competing globally for researchers and engineers with specialized skills. Some of these workers may have limited alternatives within the U.S. labor market.
Large technology companies may have greater financial capacity to absorb a six-figure immigration cost than smaller startups. That could potentially create different effects across the technology sector, although the eventual impact would depend on the final rule and how employers respond.
The proposal is also arriving at a time when governments around the world are attempting to attract AI researchers, engineers and technology entrepreneurs.
For American companies, the debate therefore extends beyond immigration paperwork to questions about labor costs, innovation and international competition.
What Happens Next?
The Department of Homeland Security is considering public comments on the proposed H-1B fee. The final outcome could involve adoption of the proposal, modification of its terms or withdrawal of the measure.
The technology industry's opposition adds another major point of debate over the future of the H-1B system.
The administration says its broader immigration strategy is designed to protect American workers, strengthen program integrity and focus H-1B visas on highly skilled workers. Technology companies and their industry representatives argue that American businesses also need access to international talent to remain competitive.
The outcome could have consequences for U.S. technology companies, AI startups, international engineers, software developers, researchers and other highly skilled workers seeking employment in the United States.
For businesses, the key question will be whether the additional cost becomes a permanent part of the H-1B system or whether the administration changes course following the public-comment process and industry opposition.
H-1B Visa Fee: Key Facts
- Proposed fee: $103,265
- Agency: U.S. Department of Homeland Security
- Affected petitions: H-1B cap-subject petitions under the proposed rule
- Current status: Proposed rule, not a final fee
- Industry opposition: TechNet has urged DHS to withdraw the proposal
- Separate measure: A $100,000 payment requirement for certain new H-1B workers remains under a separate presidential proclamation
- Major issue: The balance between protecting U.S. workers and maintaining access to international skilled talent
Frequently Asked Questions
What is the proposed H-1B fee in 2026?
DHS has proposed an additional $103,265 fee for H-1B cap-subject petitions. The fee is part of a proposed rule and is separate from other required immigration fees.
Is the $103,265 H-1B fee final?
No. The $103,265 charge is a proposed fee and is going through the federal regulatory process.
Why does the technology industry oppose the fee?
Tech industry representatives say a six-figure fee could make it more expensive for companies to recruit specialized international workers and could affect U.S. competitiveness for global technology and AI talent.
Why does the Trump administration support H-1B restrictions?
The administration says the H-1B program has been abused by some employers and outsourcing companies and that stronger restrictions can protect U.S. workers, wages and employment opportunities.
Is the $103,265 fee the same as the $100,000 H-1B fee?
No. They are separate measures. The $100,000 payment requirement was established through a presidential proclamation, while the $103,265 charge is part of a DHS proposed rule.
Why is the H-1B program important to technology companies?
The program allows U.S. employers to hire foreign workers for specialty occupations, including many positions requiring advanced technical and scientific skills. It has become particularly important to the U.S. technology and startup sectors.
· Federal Register — DHS proposed H-1B fee rule · White House — H-1B restriction proclamation · White House — H-1B program integrity executive order
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