New Visa Fee to Reduce U.S. Deficit by $28.9 Billion Over Decade

The One Big Beautiful Bill Act, recently enacted by the Trump administration, introduces a new "visa integrity fee" for all visitors requiring nonimmigrant visas to enter the U.S. This fee, set at $250, applies to a wide range of travelers including tourists, business visitors, and international students. The provision stipulates that travelers who adhere to their visa conditions will be eligible for reimbursement of this fee.

The Congressional Budget Office (CBO) estimates that this new fee could significantly reduce the federal deficit by $28.9 billion over the next decade. This projection is based on the expected issuance of approximately 120 million nonimmigrant visas during this period. In 2023 alone, over 10.4 million nonimmigrant visas were issued, highlighting the substantial number of travelers affected by this new policy.

The fee is set to be adjusted for inflation annually, with the initial rate of $250 applicable during the U.S. fiscal year 2025. The secretary of Homeland Security has the authority to increase this fee. Reimbursements will be processed after the visa expires, with any unclaimed fees deposited into the General Fund of the Government.

Senior Equity Analyst at CFRA Research, Ana Garcia, anticipates that the majority of affected travelers will be eligible for reimbursement. Historical data from the U.S. Congressional Research Service indicates that only 1% to 2% of nonimmigrant visitors overstayed their visas between 2016 and 2022. Garcia suggests that the refundable nature of the fee should alleviate concerns among legitimate travelers, as it is designed to encourage compliance rather than restrict travel.

However, the effective date of the "visa integrity fee" remains unclear. Steven A. Brown, a partner at the Houston-based immigration law firm Reddy Neumann Brown PC, notes that the specific start dates have not yet been confirmed. This fee is in addition to other charges already required of U.S. travelers, such as the $205 application fee for an H-1B worker, which could now total $455 once this new fee is implemented. Additionally, the One Big Beautiful Bill Act increased the charge for submitting a Form I-94 arrival and departure record from $6 to $24.

Despite the new fee, Garcia expects that demand for travel to the U.S. will remain unaffected. She argues that the majority of international leisure and business travelers to the U.S. are higher-income individuals for whom an additional $250 is a manageable increment relative to overall trip costs. This strategic design of the fee structure aims to enhance compliance rather than broadly restrict travel.