Trump Administration Reportedly Charged Migrants £1.05bn for Visa Applications, Knowing They Are Banned From Entry

The Trump administration is facing fresh allegations that it collected around £1.05 billion ($1.3 billion) in visa and immigration fees from people it had effectively barred from entering the United States.

The report came from the Cato Institute, an independent think‑tank. Critics, including immigration advocates and analysts, have described the situation as a major injustice for migrants who paid for services that will never be delivered.

The think‑tank's findings centre on the fee income generated from prospective migrants from more than 90 countries. Many of these individuals paid for visa processing and other services at US embassies or through immigration channels, yet, because of restrictive entry bans and paused processing, they are not eligible to receive those visas.

Travel Bans Halt Visa Processing

The news came after a series of immigration policies under President Donald Trump's second administration broadly restricted legal entry into the United States.

In January 2026, the US State Department announced an indefinite pause on immigrant visa processing for citizens of at least 75 countries, many of them in Africa, the Middle East, the Caribbean, and Latin America, citing concerns over welfare use among some immigrants.

This represented an extension of earlier travel bans affecting 40 countries. This means nearly half of the world's nations were, for the moment, barred from taking part in standard immigrant visa procedures.

These restrictions mean that large numbers of people who paid for visa services were never fully informed that their applications had almost zero chance of success.

How Fees Were Collected but Services Not Delivered

Cato's analysis was compiled by immigration policy expert David J. Bier, who highlighted that the revenue came from fees tied to work permits, green‑card adjustments, and immigrant visa applications. These are key steps in the process to obtain permanent residence.

Many of those charged paid application fees, expecting these processes to continue.

The think‑tank's estimate of £1.05 billion ($1.3 billion) is based on data from more than 2 million applications affected by entry bans and paused processing, with Cubans and Venezuelans among the most impacted groups.

Nearly a million Cuban applicants were estimated to have paid roughly £435 million ($543 million) in fees, while about 239,000 Venezuelans accounted for another £110 million ($138 million).

Internal guidance reportedly told consular officers not to inform applicants that their visas would almost certainly be denied. Officials said this would count as 'pre‑adjudication', meaning deciding eligibility before a formal review. For migrants, this has meant losing large amounts of money on fees for services they will never receive because current policies and bans prevent their applications from being approved.

Administration Defends Policy

Immigrant advocates and civil liberties experts say charging fees without delivering services is misleading and potentially exploitative. Some have called it 'one of the largest frauds in US immigration history.'

Officials have defended the travel bans and visa restrictions as necessary to protect national security and prevent misuse of the immigration system. Supporters argue that limiting visa processing is an essential way to manage legal immigration and prevent over-reliance on public benefits. Critics, however, point out that the lack of clear communication leaves migrants uncertain about their applications.

The issue shhows ongoing tensions in US immigration policy. Combining visa fees, entry bans, and paused processing has created a system where many migrants are left in limbo, having paid significant fees with no clear path to entering the country.

The Trump administration has not issued a detailed response to the Cato Institute's findings.