The US Department of Homeland Security (DHS) on Monday proposed a $103,265 fee for H-1B cap-subject petitions, marking the agency's newest move to restrict the visa program on new grounds.

The move came after previous efforts to charge $100,000 for the visa were struck down by the courts.

"The proposed fee would generate revenue to recover a portion of the federal government's costs for administering the lawful immigration system," the DHS said in a news release.

The new fee is designed to recover a portion of the full costs of providing immigration adjudication and naturalization services incurred by multiple federal agencies in processing, adjudicating and supporting the lawful immigration system, according to a document scheduled to be published in the Federal Register on Tuesday.

The DHS estimates the proposed fee would generate approximately $8.8 billion annually, based on a projected annual volume of 85,000 H-1B cap-subject petitions, according to the release.

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Under the proposed rule, the additional fee would not apply to H-1B petitions that are not subject to the cap, such as petitions filed by certain nonprofit research organizations, governmental research organizations, and institutions of higher education, the release added.

The public will be given a 30-day period to submit comments on the proposed rule before it can take effect.

"If finalized, the new proposal would place a significant new burden on the technology and finance sectors, which rely on the H-1B visa to hire top international graduates from US universities," The Wall Street Journal reported.

The latest proposal came two months after the Trump administration's $100,000 fee on new H-1B visas was struck down by a federal judge in Boston, Massachusetts. The judge ruled that the executive branch exceeded its authority and violated the Administrative Procedure Act.

In September 2025, President Donald Trump signed a proclamation raising the fee that companies pay to sponsor H-1B applicants to $100,000, saying the move was intended to ensure that the United States brings in highly skilled talent whom American workers cannot replace.

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Earlier reports from US media noted that the hefty fee would affect tech giants such as Amazon, Microsoft and Google, which have long relied on the H-1B visa program to hire foreign employees, including software developers.

CBS reported that the plan could backfire by encouraging US companies to shift jobs overseas, especially in specialized fields such as research and development. It could also further deter international students from studying in the US.

Since Trump returned to the White House, his administration has tightened immigration policies, cracking down on undocumented immigrants and increasing scrutiny of US visa holders.

On Aug 10, the US State Department announced that it had revoked more than 175,000 visas since January 2025, when Trump began his second term.

The Trump administration is preparing to revoke the business and tourism visas of up to 200,000 foreigners who have applied for or are currently seeking asylum status in the US, according to a report by The Associated Press.

"If it happens, the move would be the largest single mass revocation of visas in US history and would likely face legal challenges," the report said.