From its announcement to the start of the new H-1B registration period, only about seventy employers paid the new one-hundred-thousand-dollar H-1B fee. The low number of payments undermines the government’s argument that the fee would generate significant revenue for the federal government. Importantly, these numbers don’t include FY2027 H-1B registration.
Fee Outlines
The fee was implemented by executive order on September 19, 2025. The government explained it curtailed large corporations from using the H-1B visa to fill entry-level positions and protect American workers. Additionally, the government explained the fee mainly targets the tech industry due to tech companies receiving the majority of H-1Bs in 2024.
Challenges
Since implementation, groups have been legally challenging its implementation. According to Bloomberg Law, one group of plaintiffs in Oakland spared with government representatives over the legality of enforcing the fee and the harm it’s caused small businesses. The instance was far from the first time a plaintiffs challenged the fee.
Several groups, including the U.S. Chamber of Commerce (COC) filed multiple lawsuits against the implementation of the fee. The COC’s lawsuit specifically argues the legality of implementing such fees via executive order because generating revenue is a power reserved for Congress. Additionally, a group of U.S. lawmakers even advocated for an exception for health care and educational jobs.
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