{"id":3106,"date":"2026-08-25T18:41:31","date_gmt":"2026-08-25T18:41:31","guid":{"rendered":"https:\/\/www.vaultinsider.top\/?p=3106"},"modified":"2026-08-25T18:41:31","modified_gmt":"2026-08-25T18:41:31","slug":"the-trump-administration-proposes-over-103000-fee-for-h1-b-visas-that-would-harm-small-businesses","status":"publish","type":"post","link":"https:\/\/www.vaultinsider.top\/?p=3106","title":{"rendered":"The Trump administration proposes over $103,000 fee for H1-B visas that would harm small businesses"},"content":{"rendered":"

<\/p>\n

Mere months after a federal judge knocked down a six-figure price tag on H1-B visas, the Trump administration is taking another stab at it, proposing a $103,265 surcharge for companies looking to hire foreign workers.\u00a0<\/p>\n

\n

On Tuesday, the Department of Homeland Security proposed charging employers the extra amount on top of existing filing costs. In their proposal, the department even estimated that the six-figure upcharge would force 11,051 small businesses (76% of the small entities it analyzed) to experience a \u201csignificant economic impact\u201d as a result of the fee. The proposal will need to go through a 30-day public comment period, but if enacted, the fee would dramatically change the economics of a visa program that is widely used by tech companies, consulting firms and startups. It also runs the risk of potentially giving the largest companies another advantage over smaller competitors.<\/p>\n

While DHS argues the fee is meant to encourage companies to hire more Americans over foreign workers, research on H1-B visa restrictions indicates the opposite, according to Britta Glennon, an assistant professor at the University of Pennsylvania\u2019s Wharton School whose research focuses on immigration and the economy.<\/p>\n

\u201cWhen multinational companies can\u2019t access H-1B visas, they actually become much more likely to open a foreign affiliate abroad or expand hiring of their foreign affiliates,\u201d Glennon told Fortune<\/em>. \u201cIn other words, they offshore jobs.\u201d<\/p>\n

Big companies have options\u2013startups don\u2019t<\/strong><\/h2>\n

Glennon told Fortune<\/em> large companies like Amazon and Microsoft can opt to hire workers in countries like Canada, India or China if bringing them to the U.S. becomes difficult. The companies can even build offices in Vancouver or Toronto partly as an alternative pipeline for foreign talent.\u00a0<\/p>\n

But startups face a different problem. Glennon pointed to research finding that startups that lose out on sought-after H-1B workers are less likely to patent and less likely to reach a successful acquisition or IPO, while their multinational counterparts \u201chave ways of getting around this.\u201d<\/p>\n

\u201cSmall companies have fewer options, and so basically what we see for them is that it just hits their profitability and their success because, especially for startups, talent is such a huge part of whether they are able to succeed,\u201d Glennon explained.<\/p>\n

Second and different attempt to charge six figures for foreign talent<\/strong><\/h2>\n

The Trump administration tried to instate a similar fee last year.<\/p>\n

President Donald Trump issued a proclamation in September 2025 requiring a $100,000 payment for certain H-1B workers, but it was vacated by U.S. District Judge Leo Sorokin in June. The administration appealed the decision, but the First Circuit last month declined to keep the payment in place while that appeal proceeds.<\/p>\n

This time, DHS is using its fee-setting authority and moving through the traditional notice-and-comment rulemaking process, a distinction immigration attorney Elizabeth Ricci told Fortune<\/em> gives the $103,265 fee policy \u201ca better chance of surviving the litigation everyone expects.\u201d<\/p>\n

The fee is meant to pay back the government in immigration-related fees. DHS says the government spends about $8.8 billion a year on immigration-related costs. Divide that by the 85,000 H-1B visas available each year, and that comes out to roughly $103,265, the proposed price tag. Over 10 years, the rule would cost employers $74.9 billion.\u00a0<\/p>\n

\u201cThe proposed H\u20111B fee is intended to recover the costs incurred across the federal government to adjudicate, vet, and support lawful immigration programs that otherwise must be funded by taxpayers,\u201d Zach Kahler, a spokesperson for DHS\u2019s U.S. Citizenship and Immigration Services, told Fortune<\/em> in a statement. <\/p>\n

But even if all goes to plan, there would be less H1-B petitions, meaning the federal government won\u2019t see that money come in, Ricci told Fortune<\/em>. The agency\u2019s math \u201ccontradicts itself\u201d by counting on employers paying the fee while \u201carguing the fee\u2019s virtue is that fewer will sponsor,\u201d explaining that if the fee prevents employers from hiring foreign talent, the $8.8 billion won\u2019t materialize, and if employers hire anyway, the fee would not have been a successful deterrent.<\/p>\n

\u201cEither way, the country loses talent and jobs,\u201d Ricci said.<\/p>\n

The talent pipeline could change<\/strong><\/h2>\n

DHS argues that demand could remain high enough to fill all 85,000 H-1B slots in the cap even with the extra charge.<\/p>\n

Glennon said that may be possible at first because the program has historically been heavily oversubscribed. But the workers receiving visas could look very different.<\/p>\n

\u201cThere\u2019s not going to be any entry level\u201d workers, she predicted. Instead, sponsorship would increasingly favor advanced-career workers and \u201creally big companies that can afford it,\u201d producing what she called a \u201cbig compositional shift\u201d that will hurt small companies and startups.<\/p>\n

It could also trickle down to universities, discouraging international students from coming to the U.S. even though universities are exempt from the 85,000 cap. If students no longer believe an H\u20111B is realistically available at the end of this path, doing a U.S. degree becomes much less appealing.<\/p>\n

\u201cThat has big implications for universities, of course, but it actually has big implications for firms too, because that\u2019s been a pipeline that they\u2019ve been very reliant on,\u201d Glennon said.<\/p>\n<\/div>\n

#Trump #administration #proposes #fee #H1B #visas #harm #small #businesses<\/p>\n","protected":false},"excerpt":{"rendered":"

Mere months after a federal ju… <\/p>\n","protected":false},"author":1,"featured_media":3107,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[689,1590,273,5735,5736,5738,406,741,18,357,5737],"class_list":["post-3106","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-news","tag-administration","tag-businesses","tag-donald-trump","tag-fee","tag-h1b","tag-harm","tag-immigration","tag-proposes","tag-small","tag-trump","tag-visas"],"yoast_head":"\nThe Trump administration proposes over $103,000 fee for H1-B visas that would harm small businesses - Finance News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vaultinsider.top\/?p=3106\" \/>\n<meta property=\"og:locale\" content=\"zh_CN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Trump administration proposes over $103,000 fee for H1-B visas that would harm small businesses - 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