US proposes steep H-1B and OPT fees
Analysis based on 7 articles · First reported Aug 24, 2026 · Last updated Aug 24, 2026
The proposed fee hikes could increase labor costs for US technology companies and staffing firms that rely on H-1B talent, potentially affecting their margins and hiring decisions. Indian IT services companies and US employers with significant H-1B dependence may face higher compliance costs, while international students could see reduced incentives to study and work in the US.
The Trump administration, through the US Department of Homeland Security (DHS), is advancing regulatory proposals that could sharply increase fees for H-1B work visas and F-1 Optional Practical Training (OPT) applications. According to immigration law firm Fragomen, Del Rey, Bernsen and Loewy, a proposed OPT fee rule was sent to the United States — Office of Management and Budget (OMB) on August 20, and a separate H-1B fee proposal cleared OMB review on August 19. Reports suggest DHS could propose an H-1B fee of $103,265 and an OPT fee of up to $100,000, though exact amounts remain confidential. These proposals follow a court-blocked $100,000 H-1B fee from 2025, which a federal court vacated as an unlawful tax; the government's appeal is pending. Additionally, DHS earlier proposed eliminating the 60-day grace period for certain H-1B workers after employment ends. Indians are disproportionately affected, comprising about 71% of H-1B beneficiaries approved in 2024. The proposals could raise costs for US employers sponsoring foreign workers and for international students transitioning to employment, potentially impacting the technology and education sectors.
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