The Trump administration proposes $103,000 fee for H1-B visas that DHS itself estimates would paralyze 76% of small businesses

The Trump administration has proposed a new $103,265 surcharge on H1-B visas, which it estimates would significantly impact small businesses. This would force 11,051 of them to face a "significant economic impact" according to the Department of Homeland Security (DHS). The proposal is part of a broader effort to recover costs associated with immigration programs which are currently funded by taxpayers.

While DHS maintains that the fee aims to encourage hiring American workers over foreign talent, immigration experts argue the opposite. They say it could lead companies to offshore jobs or hire in foreign countries with more favorable visa policies. Small businesses, particularly startups, have fewer options compared to large corporations, making the fee particularly challenging for them.

This fee proposal comes on the heels of a failed attempt last year to charge a $100,000 fee, which was overturned by a federal judge. The proposed fee would generate $74.9 billion over a decade, but critics point out that this revenue could dry up if companies are deterred from sponsoring H1-B visas.