The cost of sponsoring a professional worker for an H-1B visa could soon increase dramatically.

The Department of Homeland Security has proposed a new rule that would impose an additional $103,265 fee on H-1B cap-subject petitions. The fee would be charged on top of the filing fees employers already pay to USCIS. Most importantly, the proposal is broad enough to reach cap-subject H-1B petitions for workers who are already living in the United States, including many international students transitioning from F-1 status to H-1B employment. (Federal Register)

This Is a Proposed Rule — Not a Current $103,265 Filing Requirement

Employers and foreign workers should understand an important distinction: the new $103,265 fee is not yet in effect.

DHS published the proposal in the Federal Register on August 25, 2026. The government is accepting public comments through September 24, 2026, after which DHS may modify, finalize, or potentially abandon the proposal. (Federal Register)

For now, employers should not assume that they must immediately submit an additional $103,265 with an H-1B petition.

However, if the rule is finalized substantially as proposed, it could fundamentally change the economics of H-1B sponsorship.

Who Would Have to Pay the New Fee?

The proposal would apply to H-1B petitions subject to the annual numerical cap, including petitions filed under the advanced-degree exemption commonly known as the U.S. master’s cap.

The H-1B program generally provides:

65,000 H-1B numbers under the regular annual cap; and
An additional 20,000 for qualifying workers with advanced degrees from U.S. institutions.

The new fee would therefore target the primary H-1B lottery system used by private employers to hire foreign professionals.

DHS specifically states that the additional fee would not apply to cap-exempt H-1B petitions. This distinction may protect certain universities, nonprofit research organizations, governmental research organizations, and other qualifying cap-exempt employers from the six-figure charge.

Students Already in the U.S. Could Be Hit Particularly Hard

One of the most significant aspects of the proposal is its potential impact on international students.

Previously, a $100,000 H-1B-related payment announced by the Trump administration was directed primarily at certain H-1B workers outside the United States. A federal court later vacated the agency guidance implementing that payment, and the government appealed.

The new proposal takes a different approach.

Because it is tied to the filing of a cap-subject H-1B petition itself, rather than simply the worker’s entry into the United States, it could affect employers sponsoring workers who are already here.

That means a foreign student who graduates from a U.S. university, begins working under Optional Practical Training (OPT), enters the H-1B lottery, and is selected could suddenly require an employer willing to pay more than $103,000 in additional government fees to proceed with the H-1B petition.

For many small and mid-sized employers, that could make H-1B sponsorship financially unrealistic.

Why Does DHS Want a $103,265 Fee?

DHS says the money would be used to help fund the broader federal immigration system rather than merely the cost of adjudicating an individual H-1B petition.

The proposed revenue would support immigration-related activities across several agencies, including USCIS, Immigration and Customs Enforcement, Customs and Border Protection, the Department of Justice, the Department of State, and the Department of Labor. DHS estimates that applying the fee to approximately 85,000 cap-subject petitions could generate roughly $8.8 billion annually.

This is a remarkable departure from the traditional structure of employment-based immigration filing fees.

The Fee Could Change How U.S. Companies Hire Foreign Professionals

A six-figure government filing fee could have enormous consequences for both employers and workers.

Large technology and financial companies may be able to absorb the additional expense for especially valuable employees. Smaller companies, startups, medical practices, engineering firms, consulting companies, and other businesses may not.

Employers could decide not to sponsor foreign graduates at all.

International students may also have to reconsider whether studying and building careers in the United States remains financially realistic if obtaining longer-term employment authorization becomes increasingly expensive for their employers.

DHS itself acknowledges that the proposed fee could reduce H-1B registrations and cause some employers, including small businesses, to file fewer H-1B petitions.

The $103,265 Fee Could Face Legal Challenges

The proposal is also unlikely to end the legal debate surrounding extraordinary H-1B fees.

The administration’s earlier $100,000 H-1B payment policy was challenged in federal court. In June 2026, a federal district court vacated the agency guidance implementing that payment, and the government’s appeal remains pending.

This time, DHS is attempting to establish the fee through the federal regulatory process and cites its statutory authority to charge immigration fees sufficient to recover the costs of immigration adjudication and naturalization services.

Whether courts will ultimately agree that this authority permits the government to impose a $103,265 charge on one particular category of employment petitions to finance costs throughout the immigration system may become a major issue if the rule is finalized.

What Should H-1B Employers and Foreign Professionals Do Now?

There is no reason to panic, but there is every reason to plan carefully.

Employers considering H-1B sponsorship should evaluate upcoming filing strategies now rather than waiting until the next H-1B filing season. Foreign professionals should also explore whether they may qualify for alternative immigration options, particularly if their employer could be unwilling or unable to absorb a six-figure H-1B fee.

Depending on the worker’s qualifications and circumstances, alternatives may include cap-exempt H-1B employment, O-1 status, E-2 status, L-1 status, or employment-based permanent residence through EB-1, EB-2, EB-2 National Interest Waiver, or EB-3 categories.

The best option will depend on the individual worker, employer, nationality, immigration history, education, professional accomplishments, and long-term goals.

Shepelsky Law Group Can Help You Plan Before the Rules Change

U.S. employment immigration is changing rapidly, and waiting until a new rule takes effect can leave employers and foreign workers with far fewer options.

Shepelsky Law Group helps employers, professionals, entrepreneurs, international students, and families evaluate H-1B cases and alternative immigration strategies. If you are concerned about the proposed $103,265 H-1B fee or want to determine whether another employment-based visa or green card category may be available, contact our office to schedule an immigration consultation. Call us today at Tel: 718-769-6352 or schedule your consultation at www.ShepelskyLaw.com