United States | Immigration | DHS proposes new $103,265 fee for H-1B cap-subject petitions


August 26, 2026

Immigration

United States | DHS proposes new $103,265 fee for H-1B cap-subject petitions

Summary

On August 25, 2026, the Department of Homeland Security (DHS) published a proposed rule that would impose a new $103,265 fee on most H-1B cap-subject petitions, including petitions filed under the U.S. advanced degree exemption. If finalized and implemented as proposed, the fee would be payable at the time of filing and would be charged in addition to all existing H-1B filing fees.

Importantly, this is only a proposed rule at this stage and has not yet taken effect. DHS will accept public comments before determining whether to finalize the proposal. Comments are due 30 days after publication of the proposed rule.

The detail

Proposed rule

DHS is proposing to establish a new fee of $103,265 for all H-1B petitions subject to the annual statutory cap, including those filed under the master’s cap exemption. According to DHS, the fee would be used to recover costs associated with administering the U.S. immigration system across several federal agencies, including DHS, the Departments of Justice, State, and Labor.

The fee would be assessed in addition to existing H-1B filing fees and any premium processing fees. If implemented, the fee would apply to:

  1. H-1B petitions filed under the regular annual cap; and
  2. H-1B petitions filed under the advanced degree exemption (master’s cap).
  3. The proposal would not apply to cap-exempt H-1B petitions, including those filed by certain institutions of higher education, affiliated nonprofit entities, nonprofit research organizations, and governmental research organizations.

Potential impact

The proposal, if implemented, would dramatically increase the cost of sponsoring cap-subject H-1B workers and could reshape hiring strategies for employers that rely on the annual H-1B lottery. The fee may also face legal challenges, particularly given the recent federal court decision invalidating the Administration’s prior attempt to impose a similar $100,000 fee on certain H-1B petition. Because the proposal is subject to notice-and-comment rulemaking, employers should continue to monitor developments and evaluate potential impacts on future hiring plans.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Angelo Paparelli
Partner, Vialto Law (US) LLP

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