Congressman Raja Krishnamoorthi Warns $100,000 H-1B Fee Could Push Jobs Offshore

U.S. Congressman Raja Krishnamoorthi warned that a $100,000 H-1B visa fee could send high-skilled jobs overseas instead of bringing talent to the United States.

The Illinois Democrat made the warning during an August 14, 2026, interview on the “Spill the Tea” series. He said companies facing the charge would look for ways to avoid paying it, including moving work to foreign offices.

“You can either onshore the talent or offshore the work. These companies are not going to just sit by and not do the work. I fear that increasingly companies here are gonna offshore the work.”

Krishnamoorthi called the charge a “tax on innovation.” He said it targets professionals who can later “incubate companies employing hundreds of thousands of people.”

The fee is not being collected while litigation continues. A federal court order currently blocks enforcement.

The charge originated in a September 19, 2025, Presidential Proclamation. It was designed as a supplemental payment for new H-1B petitions involving beneficiaries outside the United States, rather than for internal transfers or extensions.

A federal court order has stopped collection for now

U.S. Citizenship and Immigration Services described the legal status in a July 28, 2026, alert. The agency said a Massachusetts federal court acted on June 8, 2026, and that the First Circuit later rejected the government’s request to pause that ruling.

“On June 8, 2026, the U.S. District Court for the District of Massachusetts issued an order that vacated agency guidance implementing the $100,000 payment requirement for certain H-1B petitions. On July 24, 2026, the First Circuit denied the government's motion [to stay the order]. DHS strongly disagrees with the First Circuit's order. but will comply with the court's order while DHS considers next steps. If this order is later lifted, DHS still plans to collect the payment.”

The legal challenge came from 20 states led by California. They argued that the payment functioned as an unlawful tax, a power reserved to Congress.

The Department of Homeland Security defended the policy after the June ruling. It said the measure addressed program integrity and effects on U.S. workers, while encouraging employers to hire Americans in high-skilled fields.

Collection could resume if the court order is lifted. The agency has said it still intends to collect the payment.

Employers face another H-1B charge in September

DHS published a separate final rule on August 10, 2026, expanding the 9-11 Response and Biometric Entry-Exit Fee. That rule takes effect September 9, 2026.

Certain employers will then face a $4,000 surcharge on all H-1B extension petitions. The requirement previously did not cover every extension category.

The two measures carry different legal and operational paths. The $100,000 payment remains blocked under the current court order, while the biometric-related surcharge has a stated effective date.

That creates a new cost for employers retaining existing H-1B workers. It also adds to the financial pressure on companies that rely on extensions rather than new overseas hires.

Indian professionals make up most H-1B recipients

Indian nationals accounted for 71% of all H-1B visas issued in fiscal year 2024, making them the largest group affected by changes to the program.

The fee’s structure has drawn concern from lawmakers and immigration specialists who describe it as a tariff on labor. They argue that employers could compare the United States with countries such as Canada or the United Kingdom when deciding where to place work.

Smaller companies and startups could struggle to pay $100,000 for a single overseas hire. Larger employers could respond differently by shifting whole departments to foreign offices.

The potential response is not limited to recruitment. A company that cannot justify the charge for one worker may move the underlying assignment instead.

Krishnamoorthi proposes a larger annual cap

Krishnamoorthi reintroduced the High-Skilled Immigration Reform for Employment Act, known as the HIRE Act, in response to the fee.

The proposal would double the annual H-1B cap from 65,000 to 130,000. It also would increase federal funding for domestic STEM education.

The existing cap figure represents the regular annual limit described in the proposal. The legislation’s approach combines more temporary high-skilled admissions with greater investment in the U.S. education pipeline.

Krishnamoorthi serves as a Democrat from Illinois and co-chair of the Congressional Asian Pacific American Caucus’ Immigration Task Force. His argument focuses on where employers perform work, not only on where workers receive visas.

The administration has framed the fee as a way to protect U.S. workers and strengthen program integrity. Krishnamoorthi says the same policy could reduce American work by making overseas operations cheaper.

The next scheduled fee change arrives September 9, 2026, when the $4,000 surcharge rule takes effect for covered H-1B extensions. The court order continues to govern the separate $100,000 payment.