H-1B Rules Tighten: What The $103,265 Fee, 60-Day Grace Period Mean For Indians

The Trump administration has advanced several major proposals targeting the H-1B visa programme in August, potentially increasing the cost of hiring foreign workers, shortening the time laid-off H-1B employees have to find new jobs and changing work rights for their spouses.

The measures are at different stages of the US regulatory process. While one has formally been proposed, others are still under review and have not yet taken effect.

$103,265 Fee Proposed For New H-1B Petitions

The biggest development came on August 25, when the Department of Homeland Security (DHS) published a proposed rule seeking to impose an additional $103,265 fee on new H-1B petitions subject to the annual cap.

The proposed fee would apply to cap-subject petitions, including those eligible for the 20,000 advanced-degree exemption, and would be paid when the petition is filed on top of other applicable charges.

DHS estimates that the fee could generate around $8.8 billion annually, based on approximately 85,000 cap-subject petitions.

However, the fee is not yet in effect. Public comments are open until September 24, 2026, after which DHS must review the submissions before deciding whether to issue a final rule.

The proposed charge is separate from the $100,000 H-1B payment introduced through a 2025 presidential proclamation. The Federal Register noted that the payment was vacated by a federal district court in June, with the government appealing the decision.

60-Day Grace Period Could Be Scrapped

Another proposal could affect H-1B workers who lose their jobs.

DHS submitted a proposed rule on August 6 titled “Eliminating the Discretionary 60-day Grace Period”, which would remove the discretionary 60-day period currently available to H-1B workers and certain other employment-based nonimmigrants after their employment ends.

The proposal cleared review by the White House Office of Information and Regulatory Affairs (OIRA) on August 27, moving it closer to publication.

However, it remains a proposal and the existing 60-day framework has not been eliminated. The detailed provisions of the proposed rule have also not yet been publicly released in full.

If ultimately implemented, the change could put additional pressure on H-1B workers who are laid off to secure new employment or take other immigration-related steps quickly.

H-1B Spouses’ Work Permits Also In Focus

DHS is separately preparing a proposal that could remove certain spouses of H-1B workers from the category of noncitizens eligible to seek employment authorisation.

The federal regulatory agenda describes the measure as a reversal of the 2015 policy that allowed qualifying H-4 dependent spouses of H-1B workers to obtain employment authorisation.

The proposal is currently listed as a long-term regulatory action, with no fixed timetable for publication.

There is therefore no immediate change to H-4 spouses’ work rights. Current USCIS guidance continues to provide employment-authorisation eligibility for qualifying spouses.

What The Changes Mean For H-1B Workers

The three proposals signal a potentially tougher future for the H-1B programme, but they are not all at the same stage.

The $103,265 fee has formally been proposed and is open for public comment. The 60-day grace-period proposal has cleared regulatory review but has not taken effect. The proposal affecting H-4 spouses’ employment authorisation remains at an earlier stage.

For H-1B workers, employers and families, the key point is that these are potential changes rather than immediate new rules. The next major developments will come as the administration decides which proposals move forward into final rulemaking.