ACE and 18 other higher education associations are urging the Department of Homeland Security to withdraw a proposed rule that would impose a $103,265 fee on H-1B petitions, warning that the extraordinary cost could make it harder for the United States to attract and retain international talent.Colleges and universities generally would not have to pay the fee because their H-1B petitions are exempt from the annual cap. But in comments submitted Sept. 24, the associations said the effects would extend well beyond institutions’ own hiring.
Many international students who graduate from U.S. colleges and universities ultimately rely on employers subject to the H-1B cap to sponsor them if they want to remain in the country and work. A fee of more than $100,000 could make employers substantially less willing to provide that sponsorship.
“While we appreciate that colleges and universities are exempt from this as non-cap subject employers, we would like to emphasize the detriment this fee would have broadly on our ability to recruit and maintain global talent,” the groups wrote.
Implications for International Students and U.S. Competitiveness
The comments emphasize the connection between post-graduation employment opportunities and the ability of U.S. colleges and universities to compete for international students.
The associations said the opportunity to apply their education in the U.S. workforce through programs such as H-1B is an important factor for prospective international students deciding between American institutions and universities in other countries.
International students contribute more than $40 billion annually to the U.S. economy and also support academic programs and institutional capacity that benefit domestic students, the groups noted.
The comments also point to their longer-term economic impact, citing research from the National Foundation for American Policy finding that 24 percent of U.S. “unicorn” startups—privately held companies valued at $1 billion or more—were founded by people who originally came to the United States as international students.
Questions About How Fee Revenue Would Be Used
ACE and the other associations also raised a separate concern about how DHS plans to use the revenue generated by the fee.
Historically, U.S. Citizenship and Immigration Services filing fees have been tied to the costs of adjudicating immigration applications and petitions. The proposed H-1B fee, however, would go “far beyond the direct adjudication cost” of an individual petition, the groups said.
According to the proposed rule, revenue from the fee could support immigration-related activities not only at DHS but also at the departments of Justice, State, and Labor.
The associations questioned whether using USCIS filing fees to fund programs across multiple federal agencies is consistent with the statutory and historical purpose of those fees.
“We are concerned that this large amount of revenue will be used for programs and activities beyond those authorized and appropriated by Congress as this contravenes the historical and statutory role of the filing fees,” they wrote.