A recently implemented $100,000 fee for certain H-1B visa applications is not deterring foreign workers as intended, according to a study by John Miano of the Center for Immigration Studies (CIS). The fee, which took effect in September 2025, aimed to discourage hiring from outside the United States. However, the study argues its impact is minimal because many H-1B recipients already reside in the U.S. on other visa statuses. These domestic applicants are exempt from the higher fee tier.
Fee's Limited Impact
Data from 2024 indicates that 54% of H-1B beneficiaries were already in the U.S. on statuses like F-1 student visas. Employers are reportedly shifting their hiring focus to this existing talent pool. This circumvents the fee designed to make foreign recruitment less affordable. The annual H-1B visa cap of 85,000 remains fully utilized.
Miano's analysis suggests that while fewer applications may have been submitted from abroad due to the cost, this did not decrease the overall number of foreign professionals entering the U.S. workforce. Instead, it increased the chances of selection for those applicants already within the country.
"Domestic Loophole" Identified
The CIS study identifies a "domestic loophole" in the H-1B hiring process. The fee, intended to prioritize domestic labor, has not reduced the demand for H-1B visas. USCIS data confirms the 85,000 annual cap is still met.
| Factor | Statistical Insight |
| Current Residents | 54% of H-1B beneficiaries are already in the U.S. (e.g., F-1 students or L-1 holders). |
| Fee Exemption | Applicants already in the U.S. often avoid the highest tiers of the fee structure. |
| Annual Quota | The 85,000 cap remains fully utilized despite the increased financial barrier. |
| Visa Category | Over 70% of visas continue to go to the computer and tech sectors. |
Effect on 2026 Visa Cycle
The high fee for the 2026 H-1B Lottery has paradoxically improved the odds for eligible applicants already employed in the United States on student or training visas. This is due to a drastic reduction in duplicate and fraudulent registrations from overseas.
Experts like David J. Bier from the Cato Institute acknowledge that even a partial reduction in hiring from abroad constitutes a significant economic shift. However, Miano's findings indicate the fee's primary objective of curbing overseas recruitment may not be achieved due to the existing domestic pool of applicants.
