Indian-American Policy Group Advocates Against Proposed H-1B Fee Increase
Washington: An Indian-American policy organization has implored the United States government to reevaluate a proposed exorbitant fee of $103,265 for cap-subject H-1B visa applications.
This advisory cautions that such a financial imposition could adversely impact startups, dilute the nation’s technological superiority, and incentivize the relocation of high-value jobs abroad.
The Foundation for India and Indian Diaspora Studies (FIIDS) contends that the Department of Homeland Security (DHS) and the U.S.
Citizenship and Immigration Services (USCIS) ought to adopt an approach that balances the protection of American workers with the necessity of attracting global talent.
FIIDS explicitly expressed its support for legal, merit-based immigration, equitable remuneration, and rigorous measures against immigration fraud.
While acknowledging the inherent costs associated with processing applications, combatting fraud, performing national security screenings, and managing the legal immigration infrastructure, the organization underscored that such a steep additional fee could render legitimate recruitment economically unfeasible.
Given the precarious financial situation of many startups, the proposed fee for hiring a single skilled worker could have a pronounced impact on their recruitment strategies, the organization warned.
Furthermore, large technology enterprises that sponsor thousands of employees could encounter cumulative expenses amounting to hundreds of millions of dollars.
“If the cost of employing essential talent in the United States escalates significantly compared to hiring foreign workers, companies may be compelled to shift jobs and investments overseas,” it cautioned.
FIIDS also expressed concern regarding the cumulative implications of the proposed H-1B fee alongside a previously suggested $100,000 charge affecting Optional Practical Training (OPT).
If both fees were enforced on the pathway from international education to practical training and H-1B employment, the total financial burden could rise to an astounding $203,265, it asserted.
This expense could severely undermine the OPT program, serving as a crucial link between American universities and the labor market.
We acknowledge that DHS and USCIS require sufficient resources to safeguard national security, curb fraud, and effectively oversee legal immigration.
Yet, a $103,265 H-1B fee could smother cash-strapped startups, whereas companies employing thousands of H-1B workers may confront additional costs nearing a billion dollars, stated Khanderao Kand, chief of policy and strategy at FIIDS.
“When combined with a prospective $100,000 fee for OPT, resulting in a total of $203,265, this policy threatens to render the student-to-work pathway prohibitively expensive,” he added.
FIIDS noted that this proposal arrives at a time when the international student pipeline in the United States is already exhibiting signs of frailty.
Citing data from the Institute of International Education, the organization reported a 17 percent decline in new international student enrollments during the autumn of 2025.
Furthermore, projections from NAFSA for 2026 indicate a potential decrease of up to 111,000 international students, representing a 9.5 percent decline and an economic fallout reaching $3.4 billion.
FIIDS emphasized that USCIS currently garners approximately 96 percent of its funding from fees paid by applicants and petitioners.
The organization has urged Congress to explore financing immigration administration through existing revenue streams, appropriations, and reasonable fees instead of imposing an extraordinary burden on one segment of the legal immigration landscape.
“We urge DHS and USCIS to pursue a more balanced funding strategy, Congress to ensure adequate agency financing, and the industry to articulate America’s talent requirements clearly,” Kand remarked.
“The protection of American workers and the preservation of the nation’s technological leadership must move forward in unison.”
The H-1B program enables U.S. employers to hire foreign professionals for specialized roles. Historically, Indian nationals have constituted the largest group of H-1B beneficiaries, particularly in technology, engineering, and various skilled sectors.
OPT facilitates eligible international students in obtaining temporary work experience that aligns with their academic disciplines.
Students pursuing specific science, technology, engineering, and mathematics fields may seek an extension, rendering this program a vital conduit from U.S. higher education to skilled employment.
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