U.S. employers planning to sponsor foreign workers through the H-1B program could face a significant new cost under a proposal announced by the Department of Homeland Security (DHS).
DHS is proposing an additional $103,265 fee for H-1B petitions subject to the annual cap, including petitions filed under the U.S. advanced degree exemption. The proposed fee would be paid when the petition is filed and would be in addition to all other applicable H-1B fees.
The new fee would apply to any cap-subject H-1B petition, regardless of whether the beneficiary is inside or outside the United States. Cap-exempt petitions generally include renewals and petitions filed by universities, affiliated nonprofit entities such as qualifying hospitals, nonprofit research organizations, or governmental research organizations.
The new proposed $103,265 fee is based on a statute that states “Fees for providing adjudication and naturalization services may be set at a level that will ensure recovery of the full costs of providing all such services.”
However, the $103,265 fee is proposed, not in effect at present.
What is the New H-1B Fee Proposal?
Under the proposed rule, employers would pay an additional $103,265 for each cap-subject H-1B petition. The proposal would apply to both the 65,000 H-1B visas available under the regular annual cap and the additional 20,000 visas reserved for qualifying foreign nationals with U.S. master’s degrees or higher.
The fee would apply regardless of whether the petition requests:
- A change of status in the United States
- Consular notification
- H-1B classification through the regular cap
- H-1B classification through the advanced degree exemption
The proposed fee would be charged on top of existing H-1B filing fees and other applicable payments.
Is the $103,265 Fee in Effect Now?
No. DHS has just published a proposed rule, not a final rule. The proposal is scheduled for formal publication in the Federal Register on August 25, 2026, followed by a 30-day public comment period.
DHS must review the comments before deciding whether to issue a final regulation. The proposal would not take effect unless and until a final rule is issued with an effective date.
Employers therefore do not currently need to pay the proposed $103,265 fee simply because they are filing an H-1B petition.
Which H-1B Petitions Would be Subject to the Proposed Fee?
The proposal applies to cap-subject H-1B petitions.
This generally means petitions subject to the annual H-1B numerical limit of 85,000, consisting of:
- 65,000 regular H-1B visa numbers
- 20,000 additional numbers for qualifying foreign nationals with U.S. master’s or higher degrees.
The proposal would also cover petitions selected through the annual H-1B registration and selection process.
Which Petitions Would not ne Covered?
The proposed fee would not apply to cap-exempt H-1B petitions.
This includes certain petitions filed by qualifying:
- Institutions of higher education
- Nonprofit entities related to or affiliated with institutions of higher education
- Nonprofit research organizations
- Governmental research organizations
Certain H-1B petitions that are not subject to the annual cap, including qualifying extension petitions, would also fall outside the proposed fee.
What Could This Mean for Employers?
If finalized as proposed, the fee could have a significant financial impact on businesses that rely on the H-1B program to hire foreign professionals.
For an employer sponsoring several H-1B workers, the additional cost could quickly become substantial. Employers may therefore need to reconsider sponsorship budgets and hiring plans for future H-1B cap seasons.
The proposal could also have broader implications for employers deciding whether to sponsor entry-level or early-career workers through the H-1B program, where the additional government fee may represent a particularly large portion of the overall hiring cost.
What About the Earlier $100,000 H-1B Fee?
The proposed $103,265 fee should also be distinguished from the separate $100,000 H-1B fee announced previously by the administration.
The $100,000 fee was associated with a presidential proclamation and is currently not being collected following a court ruling that vacated the fee. Its legal status remains subject to ongoing litigation.
The newly proposed $103,265 fee is a separate DHS rulemaking proposal. If finalized, it would operate independently of the earlier $100,000 fee.
What Happens Next?
DHS will accept comments for 30 days following formal publication of the proposal. The agency will then consider the feedback before deciding whether to finalize the rule.
The proposal could also face legal challenges if DHS ultimately issues a final regulation. As a result, the final amount, scope and implementation date could potentially differ from the current proposal.
Disclaimer: This alert is for informational purposes only and does not constitute legal advice. For advice on your specific circumstances, contact your LawQuest advisor.
