By: Ann Massey Badmus August 26, 2026

New $103,000 H-1B Fee Proposed: What It Means for Employers and Workers

What is the proposed $103,265 H-1B fee?

The proposed rule would require a U.S. employer to pay an additional $103,265 for each new cap-subject H-1B petition.

An H-1B petition is the application an employer files to hire a foreign worker for a specialty occupation. Specialty occupations commonly include jobs in:

Technology and engineering
Healthcare
Scientific research
Finance and accounting
Education
Architecture
Business and data analysis

The proposed fee would be added to the existing H-1B visa cost. Depending on the employer and the type of filing, current fees may total approximately $2,000 to $5,000 or more.

That means an employer could face a total cost well above $105,000 for one new H-1B worker, before including attorney fees, recruitment costs, relocation expenses, or other business expenses.

Who would have to pay the fee?

The U.S. employer, not the foreign worker, would generally be responsible for the proposed fee.

Employers must already pay most H-1B filing fees. The proposed $103,265 amount would be an additional government charge required when filing a qualifying petition.

This could create serious problems for employers that do not have large immigration budgets, including:

Startups
Small businesses
Rural hospitals and clinics
Schools and universities
Research organizations
Nonprofit organizations
Churches and other religious institutions
Employers in areas facing worker shortages

For a large company, a six-figure fee may be difficult but manageable. For a small employer, it could make hiring one highly qualified worker financially impossible.

What does “cap-subject H-1B” mean?

The H-1B program has an annual limit, commonly called the H-1B cap.

Each year, U.S. immigration agencies generally make available:

65,000 H-1B visas under the regular cap
20,000 additional visas for workers with qualifying U.S. master’s degrees or higher

Because many more employers apply than visas are available, USCIS uses an electronic registration and lottery system to select many applicants.

A cap-subject petition is generally a petition for a new H-1B worker that must go through this annual limit and selection process.

The proposed fee would apply to both:

The regular 65,000 H-1B visas; and
The 20,000 advanced-degree exemption, sometimes called the master’s cap.

This is important because the proposal would not be limited to one industry or one type of employer. It could affect employers seeking workers in technology, medicine, education, research, and many other fields.

Which H-1B petitions would not be subject to the fee?

The proposal does not apply to certain cap-exempt H-1B petitions.

Cap-exempt employers may file H-1B petitions without going through the annual lottery when they meet specific requirements. Examples may include:

Colleges and universities
Certain nonprofit organizations connected to higher education
Nonprofit research organizations
Government research institutions
Some hospitals and medical organizations connected to qualifying institutions

However, not every nonprofit or hospital is automatically cap-exempt. The organization must meet the legal requirements, and the worker’s position and relationship to the institution may also matter.

Employers should not assume they are exempt simply because they are a nonprofit, healthcare provider, or research organization. A detailed review may be necessary.

You can read more about the H-1B program in our previous H-1B immigration alert and our article about USCIS reaching the fiscal year 2026 H-1B cap.

Is the $103,265 fee already required?

No. The fee is only a proposal.

DHS published a proposed rule rather than a final regulation. This means the government is asking the public to submit feedback before deciding whether to adopt the fee.

The public comment period is expected to end on or about September 24, 2026, approximately 30 days after publication.

The fee should not be added to current filings unless and until DHS publishes a final rule with an effective date and filing instructions.

The proposal could be:

Finalized as written
Changed after public comments
Delayed
Withdrawn
Challenged in court

Because immigration rules can change quickly, employers planning for the next H-1B cap season should monitor official updates from USCIS, DHS, and the Federal Register.

What happened to the earlier $100,000 H-1B fee?

The new proposal follows the administration’s earlier attempt to impose a $100,000 H-1B fee through a September 2025 presidential proclamation.

That earlier policy was challenged in federal court. Courts blocked the fee after finding that the executive branch could not create what amounted to a major tax without clear authorization from Congress.

The new DHS proposal appears designed to place the charge into the federal rulemaking process instead of relying only on a presidential proclamation.

That does not guarantee the new fee will survive. A final rule could still face legal challenges based on questions such as:

Whether DHS has authority to impose such a large fee
Whether the fee is really a tax rather than an ordinary processing fee
Whether Congress authorized the charge
Whether the rule follows required administrative procedures
Whether the fee is rationally connected to the cost of processing H-1B petitions

The outcome may depend on both the public comment process and future court decisions.

Why does AILA oppose the proposed fee?

The American Immigration Lawyers Association (AILA) strongly criticized the proposal.

AILA President Jeff Joseph described it as “executive overreach on steroids.” He warned that the fee could harm employers seeking essential workers, including:

Teachers
Researchers
Doctors serving rural communities
Clergy
Engineers
Scientists

AILA Executive Director Benjamin Johnson said that the fee could send a message that the United States is closing its doors to international talent.

AILA and other critics argue that the proposal could:

Price smaller employers out of the H-1B program
Make it harder for startups to hire skilled workers
Reduce the number of H-1B petitions filed
Push international talent toward countries such as Canada and China
Slow innovation and research
Increase healthcare and education workforce shortages
Encourage companies to move work outside the United States

Supporters of the proposal may argue that a high fee will discourage misuse of the H-1B program and protect U.S. workers. But critics say the fee is so high that it would also harm legitimate employers that use H-1B visas to fill jobs for which they cannot find enough qualified workers.

What does this mean for H-1B employers?

If you are an employer considering sponsorship, the proposal should be treated as a serious planning issue: but not as a current filing requirement.

You should consider:

Identifying positions that may require H-1B sponsorship
Reviewing whether your organization may qualify as cap-exempt
Preparing for the next H-1B registration period
Estimating the cost of sponsorship under different scenarios
Reviewing whether other work visa options may be available
Avoiding commitments based on the assumption that the fee will definitely take effect
Monitoring the comment period and any final rule

Employers should also remember that the fee would apply per petition. Sponsoring five new cap-subject workers could potentially mean more than $516,000 in additional fees, before ordinary filing and legal costs.

What does this mean for foreign workers?

For foreign workers, the proposal could reduce the number of employers willing or able to sponsor new H-1B petitions.

You may be affected if:

You are outside the United States and seeking a new H-1B position
You are preparing to enter the H-1B lottery
A startup or small business is sponsoring you
Your employer is deciding whether to continue with sponsorship
You are graduating from a U.S. university and seeking an employer-sponsored position

The proposal does not automatically cancel an existing H-1B visa or remove the status of someone already working lawfully in the United States. It focuses on new cap-subject petitions.

Still, employers may change hiring plans if the rule is finalized. You should speak with your employer and immigration counsel before making decisions about travel, resigning from a job, or relying on a future H-1B filing.

What should you do now?

The most important point is timing: the $103,265 H-1B fee is proposed, not final.

For now:

Do not assume the fee is currently required.
Do not delay an important filing without reviewing your situation.
Ask whether your employer may be cap-exempt.
Review alternative visa options early.
Track the September 24, 2026 public comment deadline.
Consult an immigration attorney before making a major employment or travel decision.

The bigger picture is that the proposed fee could significantly change how U.S. employers use the H-1B program. It may also affect the ability of smaller companies, hospitals, schools, and research institutions to compete for global talent.

We will continue to monitor the proposed rule, agency guidance, public comments, and any court challenges. Stay informed as this important H-1B news develops.

Schedule a consultation with Badmus & Associates to discuss your employment-based immigration options and planning strategy.

This article is for general educational purposes and is not legal advice. The proposed fee and related policies may change. Immigration outcomes depend on the facts of each case. Speak with a qualified immigration attorney about your specific circumstances.

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