DHS Proposes New $103,265 H-1B Cap Fee

The Department of Homeland Security has proposed a new $103,265 fee for certain H-1B petitions. The fee would apply to H-1B cap-subject petitions, including petitions selected under the regular cap and the advanced degree exemption.

This is still a proposed rule, not a final decision. U.S. employers do not currently have to pay this new $103,265 fee.

What DHS Proposed

DHS wants to add a new fee of $103,265 for each H-1B cap-subject petition. If finalized, the fee would be paid at the time of filing and would be charged in addition to other required H-1B filing fees.

The proposal was published as a Notice of Proposed Rulemaking in the Federal Register on August 25, 2026. Public comments are due by September 24, 2026.

Until DHS issues a final rule with an effective date, the fee is not active.

Who Would Have to Pay?

The proposed fee would apply to employers filing cap-subject H-1B petitions.

That includes:

The annual H-1B cap is generally limited to 65,000 regular cap numbers, plus 20,000 additional numbers for people with a U.S. master’s degree or higher.

Who Would Be Exempt?

The proposed fee would not apply to H-1B petitions that are not subject to the cap.

Examples include petitions filed by:

Cap-exempt H-1B petitions would continue under the normal fee rules unless DHS changes the proposal before finalizing it.

Is This the Same as the $100,000 H-1B Fee?

No. The proposed $103,265 fee is separate from the earlier $100,000 H-1B proclamation payment.

The $100,000 proclamation payment is currently not being collected after federal court rulings. The new $103,265 fee is DHS’s separate proposal through the formal rulemaking process.

For now, employers should understand the difference:

Why DHS Says It Wants the Fee

DHS says the proposed fee would help recover part of the federal government’s costs for administering the lawful immigration system.

According to DHS, those costs include immigration benefit adjudications, fraud detection, national security vetting, technology modernization, records operations, immigration court operations, consular processing, labor standards enforcement, and interagency coordination.

DHS estimates the fee could generate about $8.8 billion per year, based on an expected annual volume of 85,000 cap-subject H-1B petitions.

Why This Matters

If finalized, the proposed fee could significantly increase the cost of sponsoring a new cap-subject H-1B worker. That could affect employer hiring decisions, startup sponsorship plans, international student job offers, and H-1B lottery strategy.

But the proposal may still change. DHS must review public comments before issuing any final rule, and the final version could be revised, delayed, challenged, or withdrawn.

What Could Happen Next?

Because this is a proposed rule, DHS must review public comments before deciding whether to issue a final rule. The final version could be approved as written, revised, delayed, withdrawn, or challenged in court.

The proposed fee is unusually high, so employers, universities, industry groups, and immigration advocates may submit strong objections during the comment period. That does not mean the proposal will fail, but it does mean the final outcome is uncertain.

For now, the safest way to read the proposal is this: DHS is serious enough to begin the formal rulemaking process, but the $103,265 fee is not guaranteed to become final in its current form.

Key Takeaway

The $103,265 H-1B cap fee is not final. It is a DHS proposal for cap-subject H-1B petitions, and it is not currently payable.

U.S. employers and workers planning around the H-1B program should monitor the rulemaking process and avoid treating the proposed fee as an active filing requirement until DHS publishes a final rule.

This article is for general information only and is not legal advice.