U.S. Proposes Over $100K Fee on H-1B Employers; New Rule Expands to In-Country Applicants
Nashnova编辑部
The Trump administration proposed a $103,265 per-application fee on H-1B employers, now covering workers already inside the U.S. for the first time — This means → Amazon, Infosys, and other top users face a potential cost shock running into hundreds of millions of dollars.
What exactly is this $103K fee?
The Trump administration on Monday published a proposed rule to charge employers $103,265 per H-1B visa application, filed for publication in the Federal Register.
In June, a Boston federal court struck down an earlier executive order as "an unauthorized tax Congress never approved." This means → the administration is now retrying through the formal rulemaking process while simultaneously appealing that ruling.
In plain terms = the first attempt — collect by executive order — got blocked in court; this is a second run down a more legally defensible path.
What changed from last year's proposal?
The critical shift: the new rule extends coverage to applicants already inside the U.S., not just those filing new petitions from abroad.
This means → workers already on visas who need renewals or employer transfers are now in scope — a significantly wider net.
Most universities and nonprofit hospitals affiliated with academic institutions are exempt — the rule targets commercial employers.
What is the government's logic — why this expensive?
The administration cited a National Bureau of Economic Research working paper claiming H-1B workers earn roughly 15% less than comparable American workers.
The core argument: a steep fee will tip the cost calculus so employers are less inclined to hire an H-1B worker over an equally qualified American.
In plain terms = the government believes companies favor H-1B hires because they are cheaper; eliminate the discount and employers will default to domestic hiring.
Who gets hit hardest?
USCIS data show Amazon had over 9,300 H-1B approvals in FY2026 through June 30 — the most of any U.S. employer. Other heavy users include Indian outsourcing giants Infosys and Tata Consultancy Services (TCS), plus Apple and Microsoft.
The rule would also restrict a key application channel that tech companies rely on. This means → costs are surging and the pathway itself is narrowing.
Nasscom — the Indian IT industry's main lobbying body — has urged the U.S. to weigh H-1B's role in filling technical talent gaps, saying it is "actively engaging with key stakeholders."
Haven't Indian outsourcers already been moving away from H-1B?
TCS disclosed on its quarterly earnings call that only about 500 H-1B employees traveled to the U.S. this fiscal year; its American workforce is now "significantly localized."
Wipro says over 80% of its U.S. staff are local hires; Infosys says most of its U.S. employees need no visa sponsorship.
Yet analyst Girish Pai at BOB Capital Markets warns that tighter visa rules could still push up the share of revenue from U.S.-local delivery, compressing margins. This reflects a deeper dynamic: even as headcounts drop, the cost-structure shift still flows through to earnings.
Can this actually take effect?
The fee proposal must still clear the public comment period → final rule → possible judicial challenge pipeline; the timeline is uncertain.
Whether Amazon and peers can maintain their current talent structures without sharply higher labor costs is the key variable for the market.
In plain terms = the rule is on paper, but collecting the money is still several hurdles away — the legal tug-of-war is far from over.
Content is for reference only, not financial advice.