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

By: Kirti Kalra | August 26, 2026

The Department of Homeland Security (DHS) has proposed a major new fee that could significantly increase the cost of hiring certain H-1B workers.

If finalized, employers would be required to pay an additional $103,265 for each cap-subject H-1B petition filed after an employee is selected in the H-1B cap process. This would be in addition to the normal USCIS filing fees and any other applicable H-1B fees.

Who would be affected?

The proposed fee would apply primarily to employers sponsoring workers who are subject to the annual H-1B cap, including both the regular 65,000 cap and the 20,000 U.S. advanced-degree exemption.

The fee would generally not apply to cap-exempt H-1B petitions, including qualifying universities, affiliated nonprofit organizations, nonprofit research organizations, and government research organizations. It also would not generally apply to routine extensions or changes of employer for workers who have already been counted against the H-1B cap.

What does this mean for employers with current H-1B employees?

For most employers, the proposal does not mean that every existing H-1B employee suddenly costs an additional $103,265.

The major impact would be when an employer seeks to hire a new worker who must go through the H-1B cap process. Existing H-1B workers who have already been counted against the cap would generally remain outside the new fee when filing qualifying extensions or change-of-employer petitions.

Is this fee currently in effect?

No.

This is a proposed rule, not a final rule. Employers do not currently owe the $103,265 fee. DHS must first complete the public-comment process and issue a final rule before the requirement could take effect.

What should employers expect?

Employers that regularly hire new H-1B workers through the annual lottery should begin considering how a potential $103,265 additional cost could affect recruiting and workforce planning.

Employers with existing H-1B employees should not assume that the fee applies to every future H-1B filing. The key distinction will generally be whether the petition is cap-subject or cap-exempt.

For now, there is no change to existing filing requirements. Employers should continue operating under the current H-1B fee structure while monitoring whether DHS ultimately finalizes, modifies, or withdraws the proposal.