H-1B Update: DHS Proposes $103,265 Fee for Cap-Subject Petitions

The cost of sponsoring an H-1B worker could soon change dramatically.

The Department of Homeland Security (DHS) has proposed a new $103,265 fee for H-1B cap-subject petitions—on top of the government filing fees employers already pay.

The proposal was published in the Federal Register on August 25, 2026.

Who Would Have to Pay?

The proposed six-figure fee would apply to H-1B petitions subject to the annual cap, including beneficiaries selected under the 20,000-visa U.S. advanced degree exemption.

Importantly, the fee would apply whether the petition requests:

Change of status inside the United States; or
Consular notification for an H-1B visa abroad.

The $103,265 payment would be due when the employer files the H-1B petition—not during the initial H-1B registration process.

Who Would Not Be Affected?

The proposal is limited to cap-subject cases.

Cap-exempt H-1B petitions would not be subject to the new fee. This generally includes H-1B extensions and qualifying petitions filed by cap-exempt organizations, such as certain universities, nonprofit research organizations, and governmental research organizations.

Why $103,265?

DHS says the fee would help fund costs associated with administering the broader lawful immigration system across multiple federal agencies.

Based on 85,000 cap-subject petitions annually, DHS estimates the new fee could generate approximately $8.8 billion each year.

The Proposal Is Not Final Yet

Employers do not currently have to pay the new $103,265 fee.

This is simply a proposed rule. The public comment period remains open through September 24, 2026. DHS must review the comments and issue a final rule before the fee can take effect. Legal challenges are also expected if the proposal is finalized.

The Bottom Line

If finalized, the proposal could transform the H-1B cap program overnight. A process that already requires employers to budget thousands of dollars in immigration-related fees could suddenly carry an additional government charge exceeding $100,000 per cap-subject worker.

The proposed fee will not take effect unless and until USCIS reviews public comments submitted during the 30-day comment period and issues a final rule establishing an effective date.

For employers planning to participate in the FY 2028 H-1B cap season beginning in spring 2027, this is a proposal worth watching closely.

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