DHS has proposed a new H1B fee of $103,265 for cap-subject petitions.
The proposal was published on August 24, 2026, and the number immediately stands out. However, there is one key point to understand first: employers do not have to pay this new fee today.
This is a proposed rule. DHS must complete the federal rulemaking process before the fee can take effect. Public comments are open through September 24, 2026.
If your company sponsors H1B professionals, the proposal deserves attention now. The same applies if you hope to enter the H1B cap process through an employer.
A six-figure additional fee could significantly change how some companies approach sponsorship.
What exactly is the new H1B fee proposal?
DHS wants to charge an additional $103,265 when an employer files an H1B cap-subject petition.
The fee would apply to regular cap cases. It would also cover beneficiaries eligible for the U.S. advanced degree exemption.
The petitioning employer would pay it at the time of filing.
It would also come on top of other applicable H1B filing fees or payments. DHS proposes it as a separate fee rather than replacing the existing petition fee.
That difference matters when companies estimate the real cost of an H1B case.
Who would have to pay the $103,265 H1B petition fee?
The proposal focuses specifically on H1B cap-subject petitions.
Congress generally provides 65,000 H1B numbers under the regular cap. Another 20,000 are available through the advanced degree exemption for qualifying U.S. degree holders.
Under the current proposal:
| H1B filing | Proposed $103,265 fee |
|---|---|
| Regular H1B cap-subject petition | Yes |
| U.S. advanced degree cap petition | Yes |
| Qualifying H1B cap-exempt petition | No |
| Certain higher education petitions | No, when cap-exempt |
| Certain nonprofit research organization petitions | No, when cap-exempt |
| Certain governmental research organization petitions | No, when cap-exempt |
The H1B cap-exempt distinction is especially important.
DHS says the proposed fee would not apply to petitions that are outside the annual cap. That includes certain cases connected to higher education and qualifying research organizations.
However, employer size alone would not create an exemption.
A small company filing a cap-subject petition would face the same proposed $103,265 charge. The proposal also does not create a general discount simply because an organization is nonprofit.
If your organization uses both cap-subject and cap-exempt H1B strategies, reviewing which category applies to each position could become much more important. Loigica can help employers evaluate that distinction before future filing decisions.
Why is DHS proposing such a high H1B filing fee?
DHS says the money would recover part of the federal government’s cost of administering the lawful immigration system.
That includes immigration adjudications, fraud detection, national security vetting, technology and record systems. It also includes work performed across several federal agencies.
The calculation behind the fee is unusually direct.
DHS identified approximately $8.78 billion in costs that it wants to recover. It then divided that figure by a projected 85,000 fee-paying petitions.
The result was $103,264.57. DHS rounded that figure to $103,265.
If DHS receives 85,000 qualifying petitions, it projects approximately $8.8 billion in annual revenue from the fee.
What could this mean for H1B employers?
For many employers, the practical issue goes beyond another line on an immigration invoice. A $103,265 additional cost could change hiring decisions.
That may matter especially for startups, smaller businesses, and companies that sponsor several professionals each year.
DHS itself recognizes the potential effect on small employers. Its analysis identified 14,541 affected small entities. It estimates that 76% could experience a cost increase greater than 1% of their revenue.
For companies, that could make early planning much more important.
An employer may need to consider immigration costs earlier in the recruiting process. Companies may also need to distinguish positions that require the H1B cap from those with a legitimate cap-exempt pathway.
For foreign professionals, the impact is less direct but still important.
The employer files the petition. Yet a much higher sponsorship cost could influence whether a company chooses to pursue an H1B case for a particular role.
If you are discussing H1B sponsorship with an employer, there is no reason to assume today that your case suddenly costs $103,265. The proposal has not taken effect.
Is this the same as the $100,000 H1B payment?
No. DHS treats this proposal as a separate fee.
The Federal Register notice specifically distinguishes the new H1B fee from the $100,000 payment associated with Presidential Proclamation 10973.
DHS also says the obligations could apply together in cases where both requirements apply. Under that scenario, one payment would not replace the other.
This distinction is important because several recent H1B policies involve large dollar amounts.
Employers should confirm which rule, fee, or payment applies before making sponsorship decisions.
When could the new H1B fee take effect?
There is no effective date for the $103,265 fee yet.
DHS published a Notice of Proposed Rulemaking, known as an NPRM. The public can submit comments through September 24, 2026.
DHS will then review the comments and decide how to proceed. A final rule could differ from the current proposal.
Until a final rule takes effect, employers should continue following the existing H1B fee requirements.
Still, companies planning future cap cases should follow this process closely. The financial impact could be substantial if DHS adopts the proposal as written.
If your company expects to sponsor workers through the H1B cap, this is a useful time to review future hiring plans. Identify which positions may require cap-subject filings and which could qualify for another strategy.
For professionals, understanding how your employer approaches sponsorship can also help you plan ahead.
Loigica works with companies and professionals to evaluate H1B strategies before filing. Contact our team if you want to understand how current or proposed changes could affect your immigration planning.
Camilo Espinosa Esq.
Managing Attorney and Co-Founder at Loigica
Disclaimer
This article provides general information about DHS’s August 24, 2026 proposed H1B fee rule. It does not constitute legal advice or create an attorney-client relationship.
The $103,265 fee is a proposal and is not currently in effect. DHS may change the proposal during the rulemaking process. Employers and beneficiaries should review current requirements before making immigration or hiring decisions.
Keep learning about H1B Visa
H1B sponsorship involves more than the annual cap. Employer eligibility, filing strategy, timing, costs, and the worker’s circumstances can all affect the process.
Learn more about H1B visa services and legal strategies for U.S. employers and professionals.
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