1 week ago
FIIDS Warns Proposed H-1B Fee Could Shift High-Value Jobs Overseas
The U.S. government has proposed a very large new fee for some H-1B work visa applications.
H-1B visas help companies hire certain workers from other countries.
FIIDS, an Indian-American advocacy group, says the fee could make hiring too expensive.
It worries that startups and large employers might move valuable jobs to other countries.
A possible fee for the Optional Practical Training program could raise the combined cost to $203,265.
FIIDS also says fewer international students are enrolling in U.S. schools.
The group cited a 17 percent drop in new international student enrollment in autumn 2025.
It wants the government to fund immigration agencies in a less costly way while protecting American workers and technological leadership.
The Department of Homeland Security proposed an additional $103,265 fee for all H-1B cap-subject applications.
The fee would also apply to applicants eligible for the advanced-degree exemption.
FIIDS warned the cost could hurt startups and encourage companies to move high-value jobs overseas.
Combined with a potential $100,000 Optional Practical Training fee, total costs could reach $203,265.
FIIDS cited declining international enrollment and urged a more proportionate funding approach.
- Who
- The Department of Homeland Security proposed the fee, while the Foundation for India and Indian Diaspora Studies criticized it through a statement by Chief of Policy and Strategy Khanderao Kand.
- What
- An additional $103,265 fee was proposed for all H-1B cap-subject applications, including those eligible for the advanced-degree exemption.
- Where
- The proposal concerns the United States H-1B visa system.
- When
- The proposal was reported on August 26, 2026; FIIDS issued its statement one day after the proposal.
- Why
- The Department of Homeland Security and United States Citizenship and Immigration Services said they need resources for national security, fraud prevention, and legal-immigration administration; FIIDS warned the fee could make hiring unaffordable and move jobs overseas.
FIIDS and Employer Concerns
Government Administrative Rationale
Effect on hiring
FIIDS and Employer Concerns
FIIDS said the $103,265 fee could make legitimate hiring economically impractical, burden cash-strapped startups, and encourage companies to move high-value jobs overseas.
Government Administrative Rationale
The Department of Homeland Security proposed the fee as part of the administration of the legal immigration system; the articles do not provide a government estimate of its effect on employers.
Purpose and funding
FIIDS and Employer Concerns
FIIDS urged the Department of Homeland Security and United States Citizenship and Immigration Services to adopt a more proportionate funding approach and asked Congress to ensure adequate agency funding.
Government Administrative Rationale
FIIDS acknowledged that the Department of Homeland Security and United States Citizenship and Immigration Services need adequate resources to protect national security, prevent fraud, and administer legal immigration.
Student-to-work pathway
FIIDS and Employer Concerns
FIIDS said a possible $100,000 Optional Practical Training fee combined with the H-1B fee could make the transition from study to employment unaffordable and worsen international enrollment declines.
Government Administrative Rationale
The articles do not state a separate government position on the potential Optional Practical Training fee or its effect on international students.
Key facts
- Proposed H-1B fee
- $103,265 per covered application
- Applications covered
- All H-1B cap-subject applications, including advanced-degree exemption applicants
- Potential combined cost
- $203,265 if a possible $100,000 Optional Practical Training fee is added
- International enrollment
- New international student enrollment fell 17% in autumn 2025, according to data cited by FIIDS
- Projected enrollment decline
- NAFSA projected as many as 111,000 fewer international students in its 2026 outlook
- Potential economic loss
- Up to $3.4 billion, according to FIIDS's citation of the NAFSA outlook
- USCIS funding
- Around 96% of USCIS funding comes from fees paid by applicants and petitioners
Quotes
Khanderao Kand
Chief of Policy and Strategy at the Foundation for India and Indian Diaspora Studies
“We recognise that DHS and USCIS need adequate resources to protect national security, prevent fraud and administer legal immigration. But a USD 103,265 H-1B fee could choke cash-strapped startups, while companies hiring thousands of H-1B workers could face hundreds of millions of dollars -- and potentially close to a billion dollars -- in additional costs.”
telegraphindia.com
thehindubusinessline.com
“We urge DHS and USCIS to find a more proportionate funding approach, Congress to ensure adequate agency funding, and industry to make America's talent needs clear.”
telegraphindia.com
thehindubusinessline.com
Sources
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