The US Department of Homeland Security has proposed an additional $103,265 fee for each H-1B cap-subject petition. If finalised, the charge would be paid in addition to existing filing and statutory fees, significantly increasing employer sponsorship costs.
The proposal does not target any one nationality. However, Indian professionals could be disproportionately affected because they form a major share of H-1B beneficiaries, particularly in technology and other specialised occupations.
DHS Proposed H1B Fee 2026 Explained
The Department of Homeland Security has issued a proposed rule to add a $103,265 fee to H-1B petitions subject to the annual cap. The proposed charge would apply to standard cap-subject petitions as well as petitions filed under the US advanced-degree exemption.
The fee would be separate from all other payments required when an employer files Form I-129 for an H-1B worker. Importantly, it is not yet in force. DHS must complete the rulemaking process, including a public-comment stage, before a final rule can take effect.
DHS says the proposed fee is intended to recover costs linked to administering the lawful immigration system across multiple federal agencies. The department estimates that, based on 85,000 cap-subject petitions annually, the proposal could generate about $8.8 billion in yearly revenue.
The H-1B programme permits US employers to hire foreign professionals for specialised roles that typically require specific academic qualifications or expertise. Technology, engineering, healthcare, finance and research-related fields are among the sectors that commonly use the visa category.
H1B Cap Subject Petition Fee Would Exclude Some Employers
The proposed $103,265 fee would apply only to H-1B petitions that are subject to the annual numerical limit. The regular H-1B cap allows 65,000 visas each fiscal year, while a further 20,000 are available for eligible beneficiaries with a master’s degree or higher from a US institution.
Cap-exempt petitions would not be subject to the proposed fee. These can include petitions filed by qualifying higher-education institutions, affiliated or related nonprofit entities, nonprofit research organisations and government research organisations.
This distinction is crucial for applicants and employers. A worker seeking a job with a cap-exempt university or qualifying research body would not face the proposed extra charge through that petition. By contrast, private-sector employers filing new cap-subject cases could face a substantially higher cost if the proposal becomes final.
The rule would apply uniformly to cap-subject petitioners, including small employers and nonprofits, according to the proposal. DHS acknowledges that the fee could have a significant economic impact on a substantial number of small entities that file initial cap-subject H-1B petitions.
Indian Professionals H1B Impact Could Be Significant
The proposal is nationality-neutral, meaning it would apply to qualifying cap-subject filings regardless of the worker’s country of origin. Still, Indian professionals are likely to be among the groups most affected because of their significant participation in the H-1B system.
A fee of more than $100,000 could make employers more selective about which foreign professionals they sponsor. Smaller companies, startups and employers with limited recruitment budgets may find it particularly difficult to absorb the cost.
For professionals in India and Indian students in the United States, the change could affect how employers approach hiring decisions. It may increase the importance of cap-exempt roles, other employment visa categories and pathways that do not depend on a new cap-subject H-1B petition.
At the same time, an H-1B beneficiary does not personally file the petition; the sponsoring employer is the petitioner responsible for the fee. The financial effect could nevertheless reach workers if employers reduce sponsorship opportunities or alter their recruitment plans.
DHS Immigration Rule Public Comments Come Before Final Decision
The proposal remains subject to public comments and is not a final immigration rule. Employers, workers, universities, advocacy organisations and other stakeholders can raise concerns or support the proposal during the rulemaking process.
DHS has said the proposed charge would create a dedicated revenue source for costs associated with the administration of lawful immigration programmes. The department also argues that a high fee could encourage employers to hire an H-1B worker only where specialised skills are genuinely needed.
Immigration advocates and affected employers are expected to scrutinise the proposal closely, given the scale of the proposed new charge. The final rule, if issued, could differ from the proposal after DHS reviews public feedback.
For now, the key point for H-1B applicants and employers is that the $103,265 amount is a proposed additional fee, not a current requirement. Those planning future filings should monitor official DHS, USCIS and Federal Register updates for the final decision and effective-date details.
