DHS Proposes New $103,265 Fee for Cap-Subject H-1B Petitions
On August 24, 2026, the Department of Homeland Security (DHS) announced a proposed rule that would impose a new $103,265 fee on cap-subject H-1B petitions. The proposed fee would be in addition to the government filing fees employers already pay when filing an H-1B petition.
Importantly, the fee is not currently in effect. DHS is proposing the change through the federal rulemaking process, which includes an opportunity for public comment before a final rule can be issued.
Who Would Be Subject to the Fee?
As proposed, the new fee would apply when an employer files a cap-subject H-1B petition, including petitions for beneficiaries selected under the 20,000 H-1B U.S. advanced-degree exemption.
The fee would not apply to cap-exempt H-1B petitions, which would include qualifying petitions filed by institutions of higher education, affiliated or related nonprofit entities, nonprofit research organizations, and governmental research organizations.
The fee also would not be paid at the initial H-1B registration stage. Rather, it would become due when an employer files the H-1B petition following selection in the H-1B lottery process.
Why Is DHS Proposing Such a Large Fee?
DHS estimates that approximately 85,000 petitions per year would be subject to the new fee, generating approximately $8.8 billion annually.
Notably, DHS describes the proposed fee as supporting immigration-related government activities extending well beyond USCIS’s adjudication of an individual H-1B petition. According to DHS, the revenue would support costs associated with immigration courts, consular processing, labor standards enforcement, fraud detection and national-security vetting, interagency coordination, records management, systems modernization, and other immigration-related government functions.
That broader cost-recovery rationale will likely receive considerable attention during the public-comment process.
What Would This Mean for Employers?
If finalized at the proposed amount, the fee would dramatically increase the cost of participating in the H-1B cap process.
Employers would face a government charge of $103,265 for a selected cap case before accounting for existing H-1B filing fees and legal fees. For many employers, particularly smaller and mid-sized organizations, the additional expense could substantially affect decisions about whether H-1B sponsorship is economically feasible.
The proposal would also create an enormous cost distinction between cap-subject and cap-exempt H-1B employment.
For now, nothing changes for employers filing H-1B petitions. The $103,265 fee is a proposal, not a current filing requirement.
Employers should, however, follow the rulemaking closely—particularly organizations anticipating participation in the next H-1B cap season. Once the proposed rule is published in the Federal Register, employers will have an opportunity to review the complete proposal and submit comments before DHS proceeds toward a final rule.
We will continue to monitor the proposal, including the publication of the full rule, the public-comment period, any changes DHS makes before issuing a final rule, and the timing of any eventual implementation.