Washington, D.C., USA: The U.S. Department of Homeland Security (DHS) has proposed a new $103,265 fee for every H-1B petition subject to the annual cap, including petitions eligible for the advanced-degree exemption.
The proposed charge would be paid at the time of filing and would come in addition to all other applicable H-1B fees and payments. The proposal was announced by U.S. Citizenship and Immigration Services (USCIS) on August 24, 2026.
If finalized, the proposal could significantly increase the cost for U.S. employers seeking to hire foreign professionals through the H-1B program. The H-1B program is widely used by companies to employ skilled foreign workers, including professionals in technology, engineering, finance and other specialized occupations.
Proposed $103,265 H-1B fee
Under the proposed rule, the new fee would apply to H-1B petitions subject to the annual statutory cap. This includes the regular 65,000 H-1B cap as well as the additional 20,000 positions available to individuals with qualifying U.S. master's degrees or higher.
The proposed fee would be separate from existing H-1B filing fees. Employers would therefore have to pay the new charge in addition to other applicable fees if the rule is ultimately finalized.
Importantly, the proposed fee is not currently in effect. Because DHS issued a Notice of Proposed Rulemaking rather than a final rule, employers are not required to pay the $103,265 charge at this stage. The proposal must go through the federal rulemaking process before it could take effect.
DHS expects billions in annual revenue
DHS estimates that the proposed fee could generate approximately $8.8 billion annually, based on an estimated 85,000 H-1B cap-subject petitions each year.
According to DHS, the revenue would help recover part of the federal government's costs associated with administering the lawful immigration system. Those costs include immigration benefit adjudication, fraud detection, national security vetting, technology modernization, records and fee collection operations, immigration court activities, consular visa processing, labor standards enforcement and coordination among federal agencies.
USCIS spokesperson Zach Kahler said the proposed fee is intended to recover costs incurred across the federal government for adjudicating, vetting and supporting lawful immigration programs.
Who would be exempt?
The proposed charge would not apply to H-1B petitions that are exempt from the annual cap.
This includes certain petitions involving institutions of higher education, nonprofit research organizations and governmental research organizations.
The distinction is significant because the proposed $103,265 fee is specifically tied to H-1B petitions subject to the statutory cap.
According to an analysis by immigration law firm Reddy Neumann Brown PC, the proposal would apply to both the regular 65,000 H-1B cap and the 20,000 advanced-degree exemption, while certain cap-exempt petitions and other filings would remain outside the scope of the proposed charge.
Why is DHS proposing the fee?
DHS says the proposed charge would help recover federal government costs associated with administering the broader lawful immigration system.
The proposal also argues that cap-subject H-1B employers have the ability to absorb the additional cost. DHS cites median FY 2025 H-1B compensation of approximately $133,000 in explaining its rationale for the proposed fee.
DHS also says the higher cost could discourage employers from choosing H-1B workers over qualified U.S. workers when there is no genuine need to hire a foreign professional.
The proposed rule would distribute the recovered funds across several federal agencies involved in immigration administration, enforcement, labor standards and related operations.
Potential impact on Indian professionals
The proposal is likely to attract particular attention among Indian professionals and U.S. employers because Indian nationals represent a major share of H-1B beneficiaries.
However, it is important to clarify that the $103,265 is a proposed employer-side petition fee, rather than a fee that an H-1B worker would automatically be required to pay personally.
If finalized, the additional cost could influence employers' decisions about sponsoring foreign professionals and could increase the overall expense associated with H-1B hiring.
Public comments will be allowed
Because the proposal is a Notice of Proposed Rulemaking, it does not automatically become law when published.
DHS will accept public comments for 30 days following publication in the Federal Register. The proposed rule currently states that the comment deadline will be 30 days after publication.
The agency will then have to review significant comments before deciding whether to finalize, modify or withdraw the proposal.
The Federal Register notice identifies the proposal as DHS Docket No. USCIS-2026-0298, with RIN 1615-AD20.
For now, employers and prospective H-1B workers should therefore treat the $103,265 amount as a proposed fee rather than a current filing requirement. The final amount, scope and effective date could change during the rulemaking process.
This report is based on the DHS/USCIS proposal announced on August 24, 2026. Immigration rules and proposed fees may change during the federal rulemaking process. This article is for general informational purposes and does not constitute legal advice.
