At a press appearance today evening, Secretary Lutnick stated alongside former President Trump that the administration plans to impose a $100,000 fee per year for every H-1B worker. When pressed by a reporter on whether this fee would apply only to new H-1B petitions or also to renewals, Lutnick clarified that it would apply across the board—every H-1B filing, whether for a new hire or an extension. He said if the $ 100k is not paid yearly for every H1b then the worker can go back and Americans should be hired. He added that the so-called “nonsense” of foreign workers coming into the country and taking away American jobs “has to be stopped.” Trump then echoed the sentiment, saying it may be better for companies to hire Americans rather than employ foreign H-1B workers.
Despite the strong rhetoric, it is not clear how such a fee could be legally imposed. In the history of U.S. immigration, no such measure has ever been implemented, and the idea of a $100,000 per-year charge is unprecedented. Normally, USCIS adjusts fees through a lengthy regulatory process governed by the Administrative Procedure Act, which requires cost analysis, notice, public comment, and justification tied to the actual expenses of adjudication. Past increases have raised fees by hundreds of dollars at most, not hundreds of thousands. For that reason, the statement has generated confusion about whether the administration is envisioning a regulatory fee, a legislative surcharge, or some other mechanism such as a tariff-like measure that bypasses USCIS entirely.
If the government were to attempt to impose a fee of this magnitude without following the established process, employers and workers would almost certainly challenge it in court. Major corporations, universities, and nonprofit organizations rely on the H-1B program to fill highly skilled positions, and a sudden six-figure charge per employee could devastate industries ranging from technology to healthcare. A measure of this scale would trigger immediate class-action lawsuits, arguments that the fee is unconstitutional, and claims that it amounts to a de facto ban rather than a cost-based fee. Courts would be asked to decide whether an executive order can override the statutory and regulatory framework Congress has put in place for immigration fees.
For now, it remains unclear how the administration intends to move forward. If the plan is to treat the fee like a USCIS filing charge, it cannot be imposed without rulemaking. If it is to be treated more like a tariff or a labor-market surcharge, Congress or other statutory authority would be required. What is certain is that such a move would be challenged from every corner of the business and immigrant community, and the legal process could drag on for years.
Until details are published in the Federal Register or presented in legislation, the idea of a $100,000 annual H-1B fee remains more political theater than policy. But given the seriousness of the statement and the immediate concern it has created, employers and workers should prepare for a period of uncertainty, legal battles, and potentially disruptive proposals aimed at reshaping the future of high-skilled immigration.
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