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

The Department of Homeland Security (DHS) has proposed a new $103,265 fee for each cap-subject H-1B petition, potentially adding more than $100,000 to the cost of sponsoring an H-1B worker selected in the annual lottery.

According to DHS, the proposed fee is intended to help offset the federal government’s costs of administering the immigration system. The agency estimates that the fee would generate approximately $8.8 billion in revenue to support immigration processing, security vetting, immigration court operations, visa services, labor enforcement, and coordination among federal agencies.

If finalized, the $103,265 fee would be charged in addition to all other applicable H-1B filing fees, which currently total approximately $2,010 for employers with 25 or fewer employees and $3,380 for employers with 26 or more employees.

Importantly, the proposed fee would apply only to H-1B petitions subject to the annual numerical limits, including petitions selected under both the regular 65,000 H-1B cap and the additional 20,000 H-1Bs reserved for individuals with advanced degrees from U.S. institutions. As a result, the new fee would apply to employers filing H-1B petitions for beneficiaries selected in next year's H-1B lottery. Cap-exempt employers, such as universities and qualifying nonprofit research organizations, would not be subject to the additional fee.

DHS is accepting public comments on the proposed rule through September 24, 2026. The proposed rule and instructions for submitting comments are available here.

The proposal follows recent litigation over the administration's separate $100,000 H-1B fee. In June, a federal court struck down that fee, finding that it amounted to a tax that the President lacked authority to impose. The federal appeals court subsequently declined to allow the government to resume collecting the fee while the appeal remains pending. Given that history, the proposed $103,265 fee may also face legal challenges if DHS ultimately finalizes the rule.

For now, this is only a proposed rule, and employers are not required to pay the $103,265 fee. We will continue to monitor the rulemaking process and provide updates as developments occur.

This alert is for informational purposes only. Please contact us if you would like to discuss these developments further.