Washington, Aug 25 — An Indian-American policy group has urged the US government to reconsider a proposed additional fee of $103,265 for cap-subject H-1B petitions, warning that the measure could hurt startups, weaken America's technological edge and push high-value jobs overseas.

The Foundation for India and Indian Diaspora Studies (FIIDS) said the Department of Homeland Security (DHS) and US Citizenship and Immigration Services (USCIS) should adopt a more proportionate approach that protects American workers without restricting access to global talent.

FIIDS added that it supported legal and merit-based immigration, fair compensation and strong action against fraud.

It also acknowledged the costs involved in processing applications, preventing fraud, conducting national security checks and administering the legal immigration system.

However, it warned that imposing such a high additional fee could make legitimate recruitment economically impractical.

For cash-strapped startups, the proposed $103,265 charge for hiring a single skilled worker could significantly affect recruitment decisions, the organisation said.

Large technology companies sponsoring thousands of employees could face hundreds of millions of dollars in cumulative costs.

"If employing critical talent in the United States becomes substantially more expensive than hiring workers abroad, companies could move jobs and investments out of the country," it added.

FIIDS also raised concern about the combined effect of the proposed H-1B charge and a previously proposed $100,000 fee affecting Optional Practical Training, or OPT.

If both charges applied to the route from international education to practical training and H-1B employment, the total burden could reach $203,265, it said.

Such a cost could undermine OPT as a bridge between American universities and the US labour market.

"We recognise that DHS and USCIS need adequate resources to protect national security, prevent fraud and administer legal immigration. 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 of dollars—and potentially close to a billion dollars—in additional costs," said Khanderao Kand, chief of policy and strategy at FIIDS.

"Combined with a potential $100,000 OPT fee, totaling $203,265, the policy risks making the student-to-work pathway effectively unaffordable," he added.

FIIDS said the proposal came as the international student pipeline in the United States was already showing signs of weakness.

Citing data from the Institute of International Education, it said new international student enrolment fell by 17 per cent in autumn 2025.

It also cited a 2026 outlook from NAFSA that projected as many as 111,000 fewer international students. That would represent a possible 9.5 per cent decline and an economic loss of up to $3.4 billion, it added.

FIIDS said USCIS already received around 96 per cent of its funding through fees paid by applicants and petitioners. It called on Congress to consider funding immigration administration through existing revenue, appropriations and reasonable fees instead of placing an exceptional burden on one legal immigration category.

"We urge DHS and USCIS to find a more proportionate funding approach, Congress to ensure adequate agency funding, and industry to make America's talent needs clear," Kand said.

"Protecting American workers and maintaining America's technological leadership must go hand in hand."

The H-1B programme allows US employers to recruit foreign professionals for specialised occupations. Indian nationals have historically formed the largest group of H-1B beneficiaries, particularly in technology, engineering and other skilled sectors.

OPT permits eligible international students to gain temporary work experience connected to their field of study. Students in designated science, technology, engineering and mathematics disciplines can seek an extension, making the programme an important route from US higher education to skilled employment.

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