US proposes major H-1B visa fee hike, grace period cut, TechGig

The US Department of Homeland Security (DHS) has proposed new regulations that could drastically alter the landscape for H-1B visa holders and applicants, especially impacting Indian tech professionals. The proposals include hiking the H-1B visa fee to $103,265 and eliminating the existing 60-day grace period for unemployed H-1B workers, which would force immediate departure from the United States.

Key Proposals and Impact

According to reports from the Federal Register and immigration services firm Fragomen, the proposed H-1B fee rule and an F-1 optional practical training (OPT) fee rule have advanced through the White House Office of Management and Budget (OMB).While the exact contents remain confidential, these changes are expected to increase expenses for foreign nationals transitioning from universities to workplaces and for employers sponsoring H-1B workers.

The impact on Indian professionals is particularly significant, as they constituted 71% of the 399,402 H-1B petitions approved in 2024.

The proposed elimination of the 60-day grace period would mean that if an H-1B worker’s employment ends, they and their dependants would be required to leave the country almost immediately to avoid status violations. This change removes a critical safety net for workers seeking new employment.

It is important to note that a similar H-1B fee increase proposed last year by the Trump administration was blocked by courts. The current proposals may be tied to ongoing litigation regarding that previously blocked fee.

Stakeholders, including Indian tech professionals and sponsoring companies, are closely monitoring official releases from the DHS for the final regulations.