Foundation for India and Indian Diaspora Studies FIIDS USA 1250 Connecticut NW #700, Washington DC https://fiids-usa.org govaffairs@fiids-usa.org

PRESS RELEASE: FOR IMMEDIATE RELEASE | August 24, 2026

info@fiids-usa.org 202-495-1006

WASHINGTON, D.C. — The Foundation for India and Indian Diaspora Studies (FIIDS), an Indian American policy institute supporting legal, merit-based immigration, fair compensation and strong enforcement against fraud, urges the Department of Homeland Security (DHS) and USCIS to reconsider the proposed $103,265 additional fee for cap-subject H-1B petitions and seek a more proportionate approach that protects both American workers and U.S. competitiveness.

FIIDS recognizes the legitimate costs of adjudication, fraud prevention, national-security vetting and administration of the legal immigration system. These functions must be adequately funded. However, an extraordinary fee could make legitimate hiring economically impractical and unintentionally encourage companies to place high-value jobs overseas.

For cash-constrained startups, $103,265 for one skilled employee can materially affect hiring. For large technology companies sponsoring thousands of workers, the cumulative cost could reach hundreds of millions of dollars. If hiring critical talent in America becomes substantially more expensive than hiring abroad, the result could be fewer U.S. jobs, less investment and weakened technological competitiveness.

Avoid a $203,265 barrier to the student-to-work pipeline

FIIDS is particularly concerned about the combined impact of the proposed H-1B fee and the previously proposed $100,000 fee affecting OPT. If both were to apply to the pathway from international education through practical training and subsequently H-1B employment, the potential burden could reach

$203,265—an amount that could effectively undermine OPT as a practical bridge between U.S. education and employment.

This comes at a time when America’s international-student pipeline is already showing significant weakness. IIE reported a 17% decline in new international student enrollment in Fall 2025, while

NAFSA’s 2026 outlook projects as many as 111,000 fewer international students, representing a potential 9.5% decline and up to $3.4 billion in lost economic contribution.

International students are not simply future workers; they are a major economic asset to American universities and communities. International students contributed approximately $42.9 billion to the U.S. economy and supported more than 355,000 jobs in 2024–25. Indian students alone have been estimated to contribute nearly $10 billion annually and support approximately 93,000 U.S. jobs.

Fund the system without pricing out talent

USCIS is already overwhelmingly fee-funded, with approximately 96% of its funding coming from fees paid by applicants and petitioners. FIIDS therefore urges Congress to examine whether DHS and USCIS can be adequately funded through a combination of existing revenues, appropriations and reasonable, proportionate fees, rather than placing an extraordinary burden on one category of legal immigration.

FIIDS calls on DHS/USCIS to reconsider the magnitude of the proposed fee, while calling on Congress to ensure adequate funding for effective immigration administration. At the same time, technology companies, startups, universities and industry associations should make the economic case for maintaining America’s access to critical global talent.

Statement from Khanderao Kand, Chief of Policy and Strategy, FIIDS

“We recognize 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. Combined with a potential

$100,000 OPT fee, totaling $203,265, the policy risks making the student-to-work pathway effectively unaffordable.

“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. Protecting American workers and maintaining America’s technological leadership must go hand in hand.”

About FIIDS

The Foundation for India and Indian Diaspora Studies (FIIDS) is an Indian American policy institute focused on issues affecting India, the Indian diaspora and the United States. FIIDS advocates policies that strengthen U.S.-India relations, support the Indian American community, advance economic and technological competitiveness, and promote a fair, merit-based and lawful immigration system.