ACE, Higher Ed Groups Warn New H-1B Policies Could Undermine U.S. Competitiveness

In separate letters sent to the Department of Homeland Security (DHS) last week, ACE called for an exemption for higher education institutions from the new $100,000 H-1B application fee-now in effect following the launch of DHS's official payment portal and accompanying guidance from the U.S. Citizenship and Immigration Services (USCIS)-and urged withdrawal of a new rule that would prioritize H-1B visa petitions based on wage levels.

Both policies stemmed from President Trump's Sept. 19 proclamation, Restriction on Entry of Certain Nonimmigrant Workers. Together, the groups warned, they would undermine U.S. colleges and universities' ability to attract global talent and fulfill their role in educating the domestic workforce for high-demand sectors.

Higher Education Calls for Exemption from $100,000 H-1B Fee

ACE and 29 higher education associations are urging DHS to exempt colleges and universities from the new $100,000 fee now being implemented for H-1B visa applications.

In an Oct. 23 letter to DHS Secretary Kristi Noem, the associations said the Sept. 19 presidential proclamation establishing the fee would place an "extraordinary and unnecessary burden" on institutions that rely on H-1B visa holders to teach, conduct research, and provide medical and technical expertise in areas of national need-including health care, engineering, and computer science.

The groups noted that the proclamation allows DHS to issue exemptions in the national interest and called on the department to recognize higher education's central role in training the U.S. workforce.

They also requested clarification on how DHS will implement the fee, including whether the payment will be refunded for denied petitions, how it will affect changes of status, and what metrics will determine when no U.S. worker is available for a role.

The USCIS guidance released alongside the portal clarified that the fee applies to new petitions for individuals outside the United States and does not appear to cover F-1 students transitioning to H-1B status. However, many other aspects of the policy remain unclear.

Citing data from CUPA-HR showing that more than 70 percent of H-1B faculty hold tenure-track or tenured positions, the letter emphasized that colleges and universities already operate under strict hiring and compliance requirements. The associations asked DHS to ensure higher education is treated consistently with its long-standing exemption from the H-1B lottery cap, granted by Congress in recognition of its national-interest role.

A bipartisan group of lawmakers also sent a letter to President Trump and Commerce Secretary Howard Lutnick last week warning that the fee is "prohibitively expensive" and could harm small employers and innovation. The U.S. Chamber of Commerce has filed a legal challenge, and additional lawsuits are underway.

ACE Opposes DHS Proposal to Prioritize H-1B Visas by Wage Level

ACE and 18 other higher education associations are also urging DHS to withdraw a proposed rule that would prioritize H-1B visa petitions based on wage levels, warning that it would disadvantage international graduates of U.S. colleges and universities and discourage new student enrollment.

In Oct. 24 comments submitted to DHS, the associations said the rule "would dramatically reduce access to the H-1B visa program for early career professionals, including those who have completed master's or doctoral degrees at U.S. institutions of higher education." They added that the policy would also harm foreign-born medical residents and other professionals in critical national-need areas.

"America's colleges and universities are among the finest in the world," they wrote in the comments. "This proposed rule will limit the ability of our institutions to recruit and retain talented students, especially those who wish to remain in the United States."

The associations warned that the change could exacerbate an ongoing drop in international student enrollment. A recent NAFSA survey found potential declines of 30-40 percent in international enrollment for the 2025-26 academic year, representing an estimated $7 billion loss to the U.S. economy.

Under current law, 20,000 H-1B visas are reserved annually for foreign professionals with advanced degrees from U.S. institutions. The proposed wage-based selection process would undermine that statutory provision and contradict congressional intent, the groups warned.

ACE and its partners echoed concerns raised by the business community, noting that high-skilled immigration is vital to innovation, job creation, and economic growth.