The U.S. Department of Homeland Security (DHS) has proposed a sweeping new rule that would introduce a $103,265 filing fee for most H-1B cap-subject petitions, marking one of the most significant proposed increases in U.S. employment-based immigration filing costs.
If finalized, the new fee would apply to all cap-subject H-1B petitions, including those filed under the advanced degree exemption (master’s cap), and would be paid in addition to all existing H-1B filing fees. The proposal is expected to significantly increase the cost of hiring highly skilled foreign professionals and could reshape employer hiring strategies across industries.
What Is DHS Proposing?
According to the proposed rule, employers filing cap-subject H-1B petitions with U.S. Citizenship and Immigration Services (USCIS) would be required to pay a new $103,265 fee at the time of filing.
The proposed fee would:
- Apply to both the regular H-1B cap and the master’s cap.
- Be in addition to existing H-1B filing fees, ACWIA fees, fraud prevention and detection fees, asylum program fees, and optional premium processing fees.
- Apply regardless of whether the beneficiary is inside or outside the United States.
Unlike the administration’s earlier attempt to impose a $100,000 fee on certain H-1B beneficiaries entering from abroad—which was blocked by federal litigation—this proposal broadly targets all cap-subject petitions.
Who Would Be Exempt?
The proposal would not apply to:
- Cap-exempt H-1B petitions.
- Colleges and universities.
- Nonprofit organizations affiliated with higher education institutions that qualify for H-1B cap exemption.
- Other petitions exempt from the annual H-1B numerical limit.
Employers filing cap-exempt petitions would continue following the existing USCIS fee structure.
Why Is DHS Introducing This Fee?
DHS states that the proposed fee is intended to recover the cost of administering the broader U.S. lawful immigration system across multiple federal agencies.
According to the proposal, the revenue would support immigration-related operations performed by:
- U.S. Citizenship and Immigration Services (USCIS)
- U.S. Customs and Border Protection (CBP)
- U.S. Immigration and Customs Enforcement (ICE)
- Executive Office for Immigration Review (EOIR)
- U.S. Department of State (DOS)
- U.S. Department of Labor (DOL)
DHS estimates that these agencies collectively incur approximately $8.8 billion annually in immigration-related operational costs.
Estimated Revenue
DHS projects approximately 85,000 cap-subject H-1B petitions each fiscal year.
If filing volumes remain consistent, the proposed fee could generate approximately $8.78 billion annually.
The projected distribution of revenue includes:
| Agency | Estimated Allocation |
| USCIS | $3.0 Billion |
| EOIR | $2.96 Billion |
| ICE | $1.05 Billion |
| Department of Labor | $1.21 Billion |
| Department of State | $484 Million |
| CBP | $76 Million |
Potential Impact on Employers
If adopted, the proposal would dramatically increase the financial burden of sponsoring H-1B professionals.
DHS acknowledges in its regulatory analysis that the proposal would have a significant economic impact on employers, particularly small businesses. The agency estimates that approximately 76% of small entities filing H-1B cap petitions would experience substantial economic effects under the proposed rule.
Because the new fee would be charged in addition to existing government filing fees, employers could face substantially higher costs for each new H-1B cap petition, potentially affecting hiring decisions, workforce planning, and recruitment of international talent.
Industries that rely heavily on H-1B professionals—including technology, engineering, healthcare, finance, and research—could be among the most affected if the rule is finalized.
What Happens Next?
The proposed rule is scheduled for publication in the Federal Register on August 25, 2026.
Following publication, DHS will open a 30-day public comment period, during which employers, trade associations, universities, immigration attorneys, and other stakeholders may submit feedback before the agency decides whether to issue a final rule.
Because this is currently a proposed regulation, the $103,265 fee is not yet in effect. It will only become enforceable if DHS publishes a final rule after reviewing public comments.
Key Takeaways
- DHS has proposed a new $103,265 filing fee for H-1B cap-subject petitions.
- The fee would apply to both the regular cap and master’s cap.
- Existing USCIS filing fees would continue to apply separately.
- Cap-exempt employers, including many universities and qualifying nonprofit institutions, would not be affected.
- DHS estimates the proposal could generate approximately $8.78 billion annually to support immigration operations across multiple federal agencies.
- The proposal is currently not law and remains subject to the federal rulemaking process and public comments.
Original Government Sources
