The H-1B $100,000 Fee: Is the "New Hire" Tax Here to Stay.
- Deepak B
- 9 hours ago
- 3 min read
1. What the $100,000 Fee Is
The one hundred thousand dollar fee is something you have to pay one time for new H-1B visa petitions. This is different from the fees you have to pay when you file, which are usually between three thousand dollars and eight thousand dollars. The H-1B visa fee is, like a charge to enter the country and it was created by the President to control who enters the United States. The H-1B visa fee is meant to protect the interests of the United States.
It is technically a condition for visa issuance and entry rather than a standard USCIS adjudication fee. This distinction is crucial because it allows the administration to bypass the lengthy "notice and comment" rulemaking process usually required by Congress
2. Who Must Pay It The fee is mainly, for these things:
Companies that make technology and consulting firms that use the H-1B program a lot these companies and consulting firms really rely on the H-1B program. The H-1B program is very important, to these technology companies and consulting firms. They use the H-1B program to bring in workers from countries. The H-1B program helps these big technology companies and consulting firms get the workers they need.
Companies with more than 50 employees where over 50% are H-1B or L-1 visa holders
Employers seeking to extend H-1B visas beyond initial periods
The fee is employer-paid, not employee-paid
3. Is It a Tax or a Long-Term Policy?
From a legal perspective, it is actually categorized as a "fee" rather than a tax, but it is, in many economic aspects, quite equivalent to an excise tax levied upon hiring foreign specialty workers. The viability and longevity of the aforementioned policy will be hinged upon:
**Legislative vs. Executive Action**: The legislation passed by Congress may make it more permanent compared to the use of executive orders.
Legal Challenges: May face lawsuits on the premise of them being punitive, not administrative
Bipartisan Support: Presence in both parties' proposals, so they may have staying power
4. Why Some Think It’s Sticking Around
Notwithstanding several legal cases filed by the US Chamber of Commerce and attorneys general, the fee retains its validity. Some of the possible reasons as to why the fee has the potential of remaining valid for a long time are:
Revenue Generation: The "H-1B Security and Border Fund," which is funded by this fee, is a large source of non-appropriated funding for border enforcement.
Political Leverage: it is used as a motivator, which exerts pressure on firms so they can hire more US graduates (who do not need exemptions) rather than those from abroad.
Judicial Backing: The fee passed legal muster under a decision issued in the DC District Court in December 2025; it found that the President has broad powers in imposing restrictions for entry of non-immigrants
5. Factors That Could Change It
Opposition by Tech Industry: Aggressive lobbying could weaken provisions
Economic Conditions: This would reduce pressure in the case of labour shortages.
Legal Challenges: Courts rule discriminatory or beyond authority.
International Relations for: Trade negotiations or reciprocity concerns
Alternative Proposals: Fee-based approaches could be replaced by merit-based system reforms.
6. Practical Impact for Employers & Workers
For the 2026 Cap Season, the strategy has shifted to
For Employers: There is huge incentive for hiring F-1 OPT students who are already in the US. There is an additional incentive of $100,000 to hire a software engineer from Bangalore versus Stanford.
For Workers: When abroad, hireability just took a hit unless you are in a high demand STEM field with sufficient justification to receive a waiver.
Wage Weighted Lottery: In conjunction with the newly proposed system of wage-weighted selection, the H1B visa is gradually becoming a "High-Salary, US-
Good Luck.