The U.S. Department of Homeland Security has proposed a permanent $103,265 surcharge on H-1B skilled-worker visa petitions after courts blocked a temporary $100,000 fee set to expire in September, a move projected to cost employers about $74.9 billion over a decade and hit more than 11,000 small businesses. Officials cast the figure as recovering roughly $8.8 billion a year in immigration-related costs across the 85,000 annual cap slots, while business groups and India’s technology industry argue the visas fill genuine skill shortages and warn of damage to hiring. A Boston-based appeals court is reviewing a June ruling that vacated the earlier fee as illegal, separate Chamber of Commerce litigation continues, and challengers may amend suits once a final rule issues. Demand has cooled to about 344,000 employer registrations last year—down more than 25% from 2024 and less than half the 759,000 sought in 2023—with only about 70 employers paying the temporary fee on 85 applications as of late February. Heightened scrutiny is already reshaping plans: the State Department has ordered consulates to review applicants’ and family members’ LinkedIn profiles and resumes for technology-background H-1B seekers tied to alleged suppression of protected expression, and some large users such as Google have moved to expand operations in India.