The Trump administration has proposed a $103,265 fee on cap-subject H-1B petitions, seeking to formalize a steep charge that could significantly increase the cost for U.S. employers hiring skilled foreign workers.
The Department of Homeland Security proposal, published in the Federal Register on Monday, would apply to cap-subject H-1B petitions, including those filed under the regular 65,000 annual cap and the additional 20,000 allocation for workers with advanced U.S. degrees.
The proposal comes after the administration’s earlier $100,000 H-1B fee was blocked by a federal judge. The 2025 proclamation that introduced that fee is set to expire in September, while legal challenges over the measure remain pending.
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If finalized, the new fee would be charged in addition to existing H-1B filing costs and would represent a dramatic increase from the roughly $2,000 to $5,000 typically associated with H-1B petitions, depending on the circumstances.
DHS said the proposed fee is intended to recover federal costs associated with administering the immigration system, estimating the generation of approximately $8.8 billion annually, based on a projected annual volume of 85,000 H-1B cap-subject petitions. The proposed revenue would support immigration-related activities across agencies including the Department of Homeland Security, Department of Justice, Department of State and Department of Labor.
“The proposed H‑1B fee is intended to recover the costs incurred across the federal government to adjudicate, vet, and support lawful immigration programs that otherwise must be funded by taxpayers,” said U.S. Citizenship and Immigration Services spokesperson Zach Kahler.
The measure would affect employers seeking to sponsor new H-1B workers, including foreign graduates transitioning from F-1 status and Optional Practical Training into H-1B status. The advanced-degree exemption would also be subject to the proposed fee. Small businesses would not receive a special exemption under the proposal.
The proposal is likely to intensify the debate over the role of the H-1B program in the U.S. labor market.
READ: MIT economist warns H-1B program could weaken US education (August 19, 2026)
Supporters of tougher H-1B restrictions argue that the program should prioritize American workers and prevent companies from using foreign labor to replace U.S. employees. Business groups and technology companies, however, have argued that H-1B workers help employers fill specialized positions where qualified domestic workers may be difficult to find.
The proposed fee could also affect U.S. universities, startups and technology companies that rely on international graduates and skilled professionals. Critics say such a large upfront cost could discourage employers from retaining foreign graduates educated in the United States and make the country less competitive in attracting global talent.
For Indian professionals and international students in the U.S., the proposal could be particularly significant because Indians account for the largest share of H-1B beneficiaries. The additional cost could make the transition from F-1 student status and OPT to H-1B sponsorship more difficult for employers and graduates.
Under the proposed rule, the additional fee would not apply to H-1B petitions that are not subject to the cap, such as petitions filed by certain nonprofit research organizations, governmental research organizations, and institutions of higher education, DHS noted.
DHS will accept public comments for 30 days following formal publication of the proposed rule. The administration could then revise and finalize the regulation, potentially setting up another round of legal challenges over the government’s authority to impose the fee.