New Proposal from DHS
On August 25, 2026, the Department of Homeland Security (DHS) announced a proposed rule establishing a $103,265 fee for each H-1B cap-subject petition. This fee must be paid when filing the H-1B petition and is added to all other existing administrative fees.
This is not a fee to enter the H-1B lottery. The fee only applies after a worker is selected in the lottery and the employer files the petition.
Who Bears the Cost?
Since the fee attaches to the employer's petition, the employer is the party responsible for payment, just as they are for all current basic fees. Certain employers are exempt from fees, such as universities and affiliated nonprofit organizations.
However, this cost may ultimately affect the worker. If an employer must spend an additional $103,265 per petition, they may:
- Reduce salary levels to offset the cost
- Prioritize candidates with extensive experience to justify the investment
- Reduce the number of H-1B positions they recruit for
Scope of Application
The fee applies to H-1B cap-subject petitions, including the regular cap (65,000 visas) and the advanced degree cap (additional 20,000 visas). If the rule is approved, the fee will apply to all cap-subject petitions, regardless of whether they involve a change of status or consular processing (including F-1 students in the H-1B lottery).
Why Is DHS Proposing This Fee?
Revenue would cover costs including immigrant benefit examination, fraud detection, national security screening, system modernization, immigration court operations, consular visa processing, labor standard enforcement, and interagency coordination. DHS estimates these activities cost approximately $8.8 billion annually.
Trap to Avoid: Fee Is Not Yet in Effect
The $103,265 fee is currently not in effect. DHS must complete the notice-and-comment rulemaking process and issue a final rule before the fee can take effect. The public comment period ends September 24, 2026.
This means: if you file an H-1B petition in the coming months, you may not be subject to this fee. However, if the rule is approved, employers will need to recalculate their hiring costs.
History of Previous Attempts
This proposal follows years of legal disputes over a previous Trump administration effort to impose a $100,000 fee. On June 8, 2026, a federal court rejected that $100,000 fee, concluding the administration had exceeded its authority.
The new $103,265 proposal takes a different legal path. Rather than attempting to impose the fee through executive order, DHS is conducting a formal notice-and-comment rulemaking and relying on its statutory authority to establish fees.
Whether DHS's different legal approach will withstand judicial scrutiny remains an open question.