With uncertainty surrounding the H-1B visa fee, some U.S. businesses unsure how to move forward [View all]
Source: CBS News
June 13, 2026 / 8:04 PM EDT
Dallas — Kishore Khandavalli began his career in the U.S. on an H-1B skilled foreign worker visa. "I was one of the first ones," Khandavalli told CBS News. He now runs a software consulting company in Dallas, where nearly half of his 380 employees have H-1B visas. "There's a skills gap between the people that are available in the market, the 3%, and the skills that the market is needing," explained Khandavalli on why he doesn't give all the positions he has to Americans.
According to Khandavalli, there essentially isn't enough available U.S. talent in his sector. "Especially with the upcoming technologies," Khandavalli said. So, he was concerned when President Trump in September 2025 announced his administration was increasing the H1-B visa fee from about $215, all the way up to $100,000.
On June 8, a federal judge invalidated the White House's $100,000 fee policy in response to a lawsuit brought by 20 states. In his 42-page decision, U.S. District Judge Leo Sorokin wrote: "The substance and application of the $100,000 payment reveal that it is a tax, regardless of what the payment is called.". He added that "there are no statutory powers authorizing [the Trump administration] to implement a $100,000 tax on H-1B petitions."
Khandavalli hasn't hired any new foreign workers since Mr. Trump implemented the new fee. "With this new rule, I would have lost about $1 million a year," Khandavalli said. Much of his business relies on workers from India, which is home to 73% of H-1B visa holders, according to 2023 numbers from the Pew Research Center.
Read more: https://www.cbsnews.com/news/uncertainty-h-1b-visa-fee-us-businesses-unsure-how-to-move-forward/
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