The $100,000 H1-B Visa Fee: What It Means for US Businesses and the Economy

by Rich Hahn, ACP

When the increase of the application fee for new H1-B visas to $100,000 was announced, which went into effect on September 21, 2025, it is likely that most people thought it would only affect the tech industry and the H1-B visa holders who work in that industry. However, a closer look reveals that this increase could not only affect the tech industry but several other industries as well, and could have negative effects on the United States economy.

Which industries could be affected by the H1-B visa increase? For starters, the health care industry could be significantly impacted, particularly in medically underserved and rural areas. These regions rely on H1-B visa programs to fill critical staffing shortages, and the fee increase could exacerbate existing physician and medical staff shortages, ultimately affecting patient care.

The finance industry could also be impacted by the H-1B visa fee increase, as it makes hiring high-skilled foreign talent more expensive and challenging. This could increase operational costs and hinder the ability to fill critical roles. Positions such as quantitative analysts, financial engineers, and data scientists may be particularly impacted, therefore potentially putting companies at a competitive disadvantage. In some cases, these challenges could lead to restructuring, which often comes with a “Reduction in Force” (layoffs).

Higher education will also be affected by the H-1B visa fee increase, as it raises the cost of attracting and retaining international researchers, faculty, and staff, particularly in STEM fields, where H-1B visas are frequently used to fill critical positions. The higher fees could make universities less competitive, potentially resulting in a loss of talent and expertise in key academic and research areas, and may disrupt ongoing research projects.

The tech industry could also be significantly affected by the increase in the fee for an application for the H1-B visa. While tech giants such as Amazon, Microsoft, Google, and Meta can likely absorb the additional costs, smaller companies and startups are more vulnerable due to limited resources, making it difficult for them to attract the specialized foreign talent needed to scale operations and build overseas networks. The fee increase may also encourage tech companies to shift more of their operations overseas rather than bringing the employees to the United States, and IT outsourcing companies may increasingly adopt offshoring models, forcing clients to rely on a remote service model.

The increase in the H1-B visa application fee could have a severe impact on the United States economy, beyond the industry-specific impacts already discussed. Those economic impacts include:

  • Higher business costs: Companies may face increased expenses to bring in foreign talent, which could translate into higher prices for consumer products.
  • Offshoring of jobs: Some companies may find it more cost-effective to move positions overseas rather than maintain them in the US, reducing domestic employment opportunities.
  • Loss of innovation: The higher fee may push highly skilled graduates and experienced professionals to seek positions in countries other than the United States. Deterring highly skilled foreign workers could slow innovation and hinder economic growth.

 
Although there are no current lawsuits challenging the September 21, 2025, increase in the H1-B visa application fee, legal challenges are expected from businesses and educational institutions, along with organizations such as the US Chamber of Commerce and the American Immigration Lawyers Association, which have previously filed lawsuits in response to changes in the H1-B program.

Some potential legal arguments include:

  • Exceeding statutory authority: Federal immigration law only authorizes US Citizenship and Immigration Services (USCIS) to charge fees necessary to recover the cost of processing applications, meaning a court could potentially block the fee increase.
  • Overstepping executive power: The President may have exceeded executive authority by altering the cost of H1-B visas, encroaching on Congress’s lawmaking role.
  • Arbitrary and unlawful fee: The increase could be considered arbitrarily high and therefore unlawful.
  • Procedural violations: Federal agencies may have failed to follow the Administrative Procedures Act (APA), including providing public notice and estimating costs.

 
As this illustrates, the H-1B fee increase affects far more than the tech industry. It impacts a diverse cross-section of United States businesses, employees, and industries that rely on H-1B visa holders, with potentially significant economic consequences.

SUBMITTED BY NALA’S DIVERSITY, EQUITY, & INCLUSION (DEI) COMMITTEE

RHahn_SquareRich Hahn, ACP, is a member of NALA’s Diversity, Equity, and Inclusion Committee. He is the NALA Liaison for the Commonwealth of Virginia Paralegal Association (CVPA). He has served NALA in the following roles: Affiliated Associations Secretary (2023-2024), NALA Board of Directors At Large Director (2019-2024), and Continuing Education Council member (2017-2018). He is a graduate of NALA’s LEAP and LEAD Programs.

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