Indian IT professionals, engineers and students studying in America who dream of working and settling in America may get a big shock. The US Department of Homeland Security (DHS) has introduced a new 67-page draft rule, under which it is proposed to impose a hefty fee of $103,265 (approximately Rs 90 lakh to more than Rs 1 crore) on each new H-1B visa application that falls within the annual cap.
This new proposal will be in addition to the normal H-1B filing and statutory fees. Since Indian professionals account for more than 70% of the total H-1B visas, if this proposal becomes final law, it will become extremely expensive for American companies to hire foreign talent.
What is the new proposal and how is it different from the previous $100,000 rule?
Earlier, through a Presidential Proclamation (Executive Order) in September 2025, an attempt was made to impose a temporary entry fee of $100,000 on H-1B workers coming from outside the US. However, that order faced a legal challenge in the US Federal Court and the courts stayed its implementation.
Now, through a new draft proposal, the administration has prepared to implement it as a permanent policy using a different statutory basis:
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Broader Scope: The old rule focused primarily on people coming from outside the US through consular processing. The new $103,265 proposal calls for it to apply to all new cap-subject petitions that will be selected in the annual lottery.
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Impact on students also: According to legal experts, this new rule may also cover those international students who shift from F-1 (F-1/OPT) visa to H-1B visa status for the first time after completing their studies in America.
Who will get relief and who will not be charged this fee?
According to the proposed rules, certain categories may be exempted from this huge fee:
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Cap-Exempt Institutions: This fee will not be applicable to employees working in universities, higher educational institutions, non-profit research organizations and government research labs.
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Current H-1B Extensions and Renewals: This new fee will generally not be applicable to employees who are already working in the US on H-1B visa and are merely extending their existing term or transferring the company.
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National Interest Exemption: Exemptions have been made for health services (such as doctors in rural areas) or areas critical to US national security.
What will be the impact on Indian IT companies and tech professionals?
The typical government filing fee for an H-1B visa typically ranges from $2,000 to $5,000.
If each new employee adds an additional cost of around ₹1 crore, its biggest impact will be on small and medium tech companies. Under US labor laws, the company (employer) has to pay the fees for the H-1B petition. Due to such high costs, many companies may stop new hiring of foreign employees or prefer to outsource work directly to countries like India through Global Capability Centers (GCCs).
Right now only 'draft proposal', final decision is yet to be taken
Immigration law experts say it is currently the only Proposed Draft Rule Is. After it is published in the Federal Register, it will be opened for public comment (Public Comment Period), which may take several months. After this, if the government notifies it as a final rule, then there is every possibility of it being challenged again in the courts by American business groups and the tech industry. Therefore, there is no need to panic immediately on the ongoing visa status, but uncertainty regarding new H-1B recruitments in the future has definitely increased.