New H1B Visa Fee Proposed
Under the government proposals, employers filing an H-1B petition that is subject to the annual cap would be required to pay an additional $103,265 at the time of filing.
The fee would apply to petitions under both the regular 65,000 H-1B cap and the additional 20,000 places available to individuals with a US master’s degree or higher.
The new charge would be payable in addition to existing H-1B filing fees, rather than replacing them.
How much more would H-1B sponsorship cost?
At present, employers pay a combination of USCIS filing fees and statutory charges, with the total depending on factors including employer size and whether premium processing is used.
If the proposal is finalised as drafted, employers filing a cap-subject petition would face an additional $103,265 per case on top of those existing costs.
DHS estimates the new fee would raise approximately $8.8 billion a year, based on 85,000 cap-subject petitions annually.
Who would be affected?
The proposed fee would affect US employers sponsoring workers through the annual H-1B cap, including those filing for candidates under the US advanced degree exemption.
It would also apply to cap-subject petitions filed by small employers and nonprofit organisations.
However, the new fee would not apply to H-1B petitions that are exempt from the annual cap. This would generally include qualifying petitions filed by institutions of higher education, nonprofit research organisations and governmental research organisations.
What happens next?
This is a proposed rule, not a final rule, so the $103,265 fee is not currently payable.
Following publication on August 25, 2026, interested parties will have 30 days to submit comments. DHS will then review the responses before deciding whether to finalise, amend or withdraw the proposal.
Employers that rely on the H-1B cap should monitor developments closely and consider the potential impact of the proposed fee on future US recruitment and immigration budgets.
NNU Immigration Attorney Insight
Employers and applicants should take this proposal seriously. The federal government previously sought to impose a separate $100,000 H-1B payment through a 2025 presidential proclamation, but a federal district court struck down the implementing guidance in June 2026; the government appealed that decision and the appeal remains pending. DHS expressly acknowledges that history in the new proposal and states that this rule relies on different statutory authority.
The decision to pursue a new $103,265 fee through formal notice-and-comment rulemaking, while continuing to defend the earlier $100,000 measure on appeal, is a strong indication that the administration remains determined to impose a substantial additional cost on H-1B sponsorship. That does not mean the new rule is certain to survive legal challenge: opponents may again contest whether DHS has statutory authority to impose a charge of this scale. But employers should not assume that the earlier court defeat means the issue has gone away.
If finalized, the impact could be significant. An additional $103,265 charge could change which employers are prepared to use the H-1B cap at all, with the greatest impact likely to fall on smaller employers, early-career hires and international students moving from F-1 OPT or STEM OPT to H-1B status.
Employers are advised to start to plan now, albeit without treating the proposal as settled law. Businesses expecting to sponsor cap-subject workers should model the potential cost and identify cases where cap-exempt H-1B employment or another immigration category could provide an alternative.
For applicants, immigration strategy may also need to start earlier. Candidates should not assume that an employer that historically sponsored H-1Bs will continue doing so on the same basis if the cost increases by more than $100,000 per petition. Those approaching the end of OPT or another temporary status should understand their alternatives well before the next cap season.
This remains a proposal, and its final form, effective date and any future legal challenges remain uncertain. However, the administration’s continued efforts to impose a substantial H-1B charge mean employers and applicants should prepare for the possibility of a materially different sponsorship landscape rather than assuming the proposal will simply disappear.
Need Assistance?
For advice on any aspect of the H1B process, or to discuss alternatives to the H1B program, book a fixed-fee telephone consultation with one of our US immigration attorneys.
