The Department of Homeland Security wants to add a $103,265 fee to every H-1B cap-subject petition, on top of all existing fees and payments. The proposal, announced on August 24, 2026, is not in effect: it is a proposed rule open for public comment for 30 days, and it could only become law through a subsequent final rule. Here is who would pay, what an H-1B petition would cost if the rule is finalized, and what employers and candidates should do while it is pending.
What DHS Announced on August 24, 2026
According to the official USCIS news release dated August 24, 2026, DHS is proposing to establish a $103,265 fee for all H-1B cap-subject petitions, including those eligible for the advanced degree exemption. The fee would be paid at the time of filing and would come in addition to every other applicable fee or payment.
The full text appears in the notice of proposed rulemaking, filed for public inspection the same day and published in the Federal Register on August 25, 2026 under docket number USCIS-2026-0298. DHS estimates the fee would generate approximately $8.8 billion per year from a projected 85,000 cap-subject petitions, as a dedicated revenue source for the costs of running the immigration system: adjudication, fraud detection and security vetting, systems modernization, records and fee operations, immigration courts, consular visa processing, labor standards enforcement, and interagency coordination.
Who Would Pay, and Who Would Not
The dividing line is the H-1B cap, not the beneficiary’s location or filing route. A cap-subject petition would carry the fee whether it requests a change of status inside the United States or consular notification abroad.
| Would pay the $103,265 fee | Would not pay it |
|---|---|
| Petitions filed under the regular 65,000 annual cap | Petitions by institutions of higher education |
| Petitions under the 20,000 advanced degree exemption (US master’s or higher) | Petitions by nonprofit research organizations and governmental research organizations |
| Cap-subject filings regardless of change of status or consular processing | Extension petitions and other filings not subject to the cap |
In practice, the fee targets new cap H-1Bs for private sector employers. Universities, their affiliated nonprofits, and research organizations keep filing without it, and an existing H-1B worker extending status with the same employer is outside the proposal entirely.
What an H-1B Cap Petition Would Cost
Under the current USCIS fee schedule (G-1055, edition of May 29, 2026), the government fees for a cap-subject H-1B petition filed on paper by an employer with 25 or more employees total $3,595: the $215 registration fee, the $780 Form I-129 filing fee, the $1,500 ACWIA training fee, the $500 Fraud Prevention and Detection fee, and the $600 Asylum Program Fee. Optional premium processing adds $2,965, and employers with 50 or more employees where more than half hold H-1B or L-1 status pay a further $4,000 where applicable.
If the proposal is finalized as written, the same baseline petition would carry $106,860 in government fees. For what employers pay today, line by line, see our H-1B visa fees and budgeting guide.
The Fee Is Not in Effect Today
Nothing changes for petitions filed now. The proposal sets no effective date; it opens a 30-day public comment window that runs until September 24, 2026, through the federal rulemaking docket USCIS-2026-0298 on regulations.gov. DHS must then review the comments and publish a final rule before any new fee can be collected, and legal challenges to a fee of this size are widely expected.
Timing matters for planning. The FY 2027 cap filing season has already run under existing fees. Since the fee could apply only after a final rule, its earliest practical impact would fall on a future cap season, and employers will see the final amount and effective date in the final rule itself.
How This Interacts With the $100,000 Proclamation Payment
This is not the same charge as the $100,000 payment required by Presidential Proclamation 10973 of September 19, 2025, and the proposed rule addresses the overlap directly. The proposed fee rests on different legal authority (the fee-setting provisions in sections 286(j) and (m) of the Immigration and Nationality Act), and DHS states that a petitioner subject to both obligations would pay both.
The proclamation payment itself is in litigation. Its window covered petitions filed from September 21, 2025 to September 21, 2026 unless the proclamation is extended, and DHS notes in the proposed rule that, unless extended, the proclamation will expire before the new fee could take effect. On June 8, 2026 the federal district court in Massachusetts vacated the agency guidance implementing the payment in California v. Mullin; the government appealed on June 11, 2026, and the appeal was pending when the proposal was filed. DHS states it would resume collecting the payment under the proclamation’s terms only if that court order is lifted. For the year’s other H-1B developments, our H-1B rule changes in 2026 overview tracks the full picture.
What Employers and H-1B Candidates Should Do Now
- File current cases under current fees. The proposed fee must not be added to any filing today; petitions pay only the fees in the current schedule until a final rule says otherwise.
- Comment if the rule affects you. Comments are due by September 24, 2026 on docket USCIS-2026-0298. Comments that cite a specific part of the proposal and explain the impact with data carry the most weight, and the docket also lets you sign up for alerts when a final rule publishes.
- Model the budget scenarios. A sponsorship plan for future cap seasons should now carry two numbers: today’s roughly $3,600 to $10,600 in government fees, and a scenario above $106,000 if the rule is finalized as proposed.
- Map the routes the fee does not touch. Cap-exempt employers (universities, nonprofit and governmental research organizations) would file without the fee, and extensions remain outside it. For candidates and employers weighing other paths, our guide to H-1B alternatives compares the options, from L-1 and O-1 to employment-based green card routes.
- Decide with the final rule, not the headline. The amount, exemptions, and start date can all change between proposal and final rule. Build decision points around the final rule’s publication rather than acting on the proposal itself.
Planning an H-1B Strategy Under Fee Uncertainty?
A proposal of this size changes sponsorship math years ahead, and the right answer differs by employer size, cap exemption status, and the candidate’s profile. We track the rulemaking as it moves and can assess what it means for your case, including routes that stay outside the fee entirely. Contact us for a case-specific assessment.
This article is for informational purposes only and does not constitute legal advice. Every immigration case depends on its own facts. For an assessment of your specific situation, consult an immigration attorney.
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