WASHINGTON — A proposed regulatory overhaul introducing a massive $103,265 fee for H-1B specialty occupation visas could backfire on the United States economy by driving high-value technology jobs offshore and damaging American innovation leadership, a prominent Indian-American advocacy group warned.
Responding to a fresh proposal by the Department of Homeland Security (DHS), the Foundation for India and Indian Diaspora Studies (FIIDS) expressed deep concern over the financial strain the policy would place on employers, startups, and international talent seeking work in the U.S.
The DHS regulatory filing proposes adding a $103,265 fee to all cap-subject H-1B visa applications, including petitions filed under the advanced degree exemption pool.
"We recognize that DHS and USCIS need adequate resources to protect national security, prevent fraud, and administer legal immigration," said Khanderao Kand, Chief of Policy and Strategy at FIIDS, in an official statement. "But a $103,265 H-1B fee could choke cash-strapped startups, while companies hiring thousands of H-1B workers could face hundreds of millions—and potentially close to a billion dollars—in additional operational costs."
Kand further emphasized that when factored alongside a potential $100,000 fee for Optional Practical Training (OPT), total visa transition costs for international graduates could balloon to over $203,000. Such a steep price tag would render the traditional student-to-work pipeline financially unviable for candidates and mid-sized enterprises alike.
The diaspora body cautioned that instead of protecting domestic employment, exorbitant filing fees would force multinational firms to establish development hubs abroad, effectively sending critical technological jobs and research infrastructure outside American borders.
The warning comes at a time when international higher education enrollment in the U.S. is already facing headwinds. Citing data from the Institute of International Education, FIIDS highlighted a 17% drop in new international student enrollments during Autumn 2025. Projections from international education association NAFSA indicate a further decline of up to 111,000 international students in 2026, which could translate to an estimated $3.4 billion economic loss for American universities and local businesses.
FIIDS urged the Department of Homeland Security and U.S. Citizenship and Immigration Services (USCIS)—which currently relies on application and petition fees for roughly 96% of its operating budget—to adopt a more balanced funding mechanism. The group called on U.S. lawmakers and industry leaders to collaborate on policy measures that secure immigration agencies without undermining the nation's economic competitiveness.
"Protecting American workers and maintaining America's technological leadership must go hand in hand," Kand added.
