FIIDS warns USD 103,265 H-1B fee could push jobs out of US

Washington,UPDATED: Aug 26, 2026 05:10 IST

An Indian-American advocacy group has raised concerns over a proposed additional fee of USD 103,265 for H-1B work visas, saying the move could make hiring too costly and push jobs out of the United States. The Foundation for India and Indian Diaspora Studies, or FIIDS, said the plan could hurt startups and make it harder for employers to hire skilled workers through legal channels.

The group said the proposal could also make the student-to-work route far more expensive if combined with a possible USD 100,000 fee for Optional Practical Training, or OPT. It warned that this would come at a time when international student numbers in the US were already showing signs of falling.

FIIDS issued the statement a day after the Department of Homeland Security proposed the additional USD 103,265 fee for all H-1B visa cap-subject applications, including those eligible for the advanced degree exemption. "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," Khanderao Kand, Chief of Policy and Strategy at FIIDS, said in a statement.

Kand said that, along with a potential USD 100,000 OPT fee, the total of USD 203,265 could make the student-to-work pathway effectively unaffordable. "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," he said. "Protecting American workers and maintaining America's technological leadership must go hand in hand," he added.

FIIDS said the proposal had come when the international student pipeline in the US was already weakening. Citing data from the Institute of Education, it said new international student enrolment fell by 17 per cent in autumn 2025. It also referred to a 2026 outlook from NAFSA that projected as many as 111,000 fewer international students, which would mean a possible 9.5 per cent decline and an economic loss of up to USD 3.4 billion. FIIDS also said the US Citizenship and Immigration Services already receives about 96 per cent of its funding through fees paid by applicants and petitioners. Overall, the group said the proposed fee increase could make legal hiring and the student-to-work route significantly more expensive while adding to pressure on the international student pipeline.

With PTI Inputs

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