US Plans Sweeping Reforms to H-1B Visa Program, Proposes Steep Filing Fee Hike

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Washington (Rajeev Sharma): In a move set to reshape the landscape for foreign professionals in the United States, the Biden administration—continuing some policies from the Trump era—is advancing plans to tighten regulations around the H-1B visa system. Among the most striking proposals is the introduction of a $100,000 mandatory filing fee for each H-1B petition, a significant jump from current costs and a potential deterrent for many employers.

The proposal, listed in the U.S. Department of Homeland Security’s (DHS) regulatory agenda, falls under a broader initiative titled “Reforming the H-1B Nonimmigrant Visa Classification Program.” The rule, expected to be made public by December 2025, outlines a series of changes aimed at curbing misuse and increasing oversight.

Key Proposed Changes:

  • Re-evaluation of cap-exempt criteria for certain employers, such as nonprofits and educational institutions
  • Closer monitoring of past violators of H-1B regulations
  • Stricter controls on third-party job placements, particularly in IT consulting
  • Enhanced enforcement tools for compliance audits and investigations

According to DHS, the objective is to “strengthen program integrity and protect the rights of U.S. workers,” reflecting long-standing concerns that the visa program has at times been used to undercut domestic wages or displace American employees.

Ending the Random Lottery?

In addition to regulatory adjustments, the administration is reportedly exploring the possibility of replacing the existing lottery-based selection system with a wage-tiered model. This approach would prioritize applications offering higher salaries, giving preference to employers hiring highly paid, experienced professionals.

Supporters of this shift argue it would ensure that only the most skilled—and highly valued—foreign workers are selected. However, critics warn it may sideline entry-level talent, particularly recent graduates or early-career professionals, many of whom rely on H-1B sponsorship to begin their U.S. careers.

The H-1B’s Role in the U.S. Workforce

The H-1B visa, created under the 1990 Immigration Act, allows American companies to temporarily hire foreign workers in specialized fields such as technology, engineering, health care, and research. Each year, 65,000 standard H-1Bs are issued, with an additional 20,000 set aside for individuals with advanced degrees from U.S. institutions.

While the program spans multiple industries, it is particularly vital to the U.S. tech sector. According to Pew Research Center, Indian nationals accounted for nearly three-quarters of all H-1B approvals in 2023, with the vast majority working in computer and information technology roles.

Concerns Over Cost and Access

The proposed six-figure application fee has raised alarm among businesses, especially small and mid-sized firms that may find the cost prohibitive. Currently, companies pay a range of government fees per H-1B application, often totaling between $5,000 and $7,000. A $100,000 filing cost would drastically change the financial calculus of hiring foreign talent.

Industry experts fear that such a fee, combined with other proposed restrictions, could discourage legitimate hiring and limit the talent pool available to U.S. companies.

“This would be a seismic shift in the economics of hiring foreign professionals,” said an immigration attorney based in New York. “For smaller firms and startups, it could effectively shut the door.”

Indian Professionals Could Face Disproportionate Impact

Given their overwhelming representation in the H-1B pool, Indian nationals stand to be among the most affected by the proposed changes. Many Indian students in the U.S. rely on the H-1B visa to remain in the country after graduation and begin their careers. A more selective or expensive process could reduce opportunities for them significantly.

The proposed reforms have also sparked concerns within the Indian-American community and among advocates for immigrant rights, who argue that the system should be reformed without becoming exclusionary.

By Rajeev Sharma

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