The Department of Homeland Security and Department of Labor have jointly proposed sweeping fee and wage increases for the H-1B visa program, which lets U.S. employers hire foreign workers in specialty occupations. The DHS proposal would add a $103,265 fee for each H-1B petition filed by private-sector employers, while the DOL is separately proposing to increase prevailing wage minimums by approximately $14,000 per position annually.
Together with Congressional fee increases enacted in 2026, the combined cost to hire foreign workers would increase dramatically. These proposals have not been finalized—they entered public comment periods in late August 2026—but they signal a significant shift toward making high-skilled foreign worker hiring substantially more expensive. The changes would primarily affect private employers on the H-1B lottery, which draws approximately 85,000 positions annually, while leaving universities, nonprofits, and government research institutions unaffected.
Table of Contents
- The DHS Fee Proposal and Its Legal History
- Department of Labor Wage Increases
- How Costs Stack and What It Means for Employers
- Who Is Exempt and Why It Matters
- What Happens Next
- Frequently Asked Questions
The DHS Fee Proposal and Its Legal History
The DHS's proposed $103,265 fee applies to all H-1B cap-subject visa petitions filed by private-sector employers, generating an estimated $8.78 billion in annual revenue. This fee is separate from the existing H-1B petition fee of $460 and represents a new charge designed explicitly to increase the cost of hiring foreign workers in this visa category.
The proposal uses a different legal authority than an earlier Trump administration executive order that imposed a $100,000 fee on overseas H-1B hiring. That prior fee was struck down in federal court, so the DHS redesigned the $103,265 fee to withstand similar legal challenges by anchoring it to separate statutory authority. The administration has signaled commitment to implementing some form of the fee if legal authority permits.
Department of Labor Wage Increases
Separately, the Department of Labor proposed sweeping increases to prevailing wage requirements for H-1B, H-1B1, E-3, and PERM employment-based visa programs. Prevailing wage is the minimum salary an employer must offer a foreign worker, set by the DOL based on regional occupation data. The proposed increases would add approximately $14,000 annually to the cost per position, though the exact amount varies by location and occupation.
Unlike the DHS fee, prevailing wage changes do not create a new line-item cost—they increase the salary baseline itself. This means employers would need to pay higher salaries to foreign workers while also absorbing the new fees, compounding the overall expense.
How Costs Stack and What It Means for Employers
Congress also enacted additional fee increases on employment-based immigration in 2026, including a minimum $250 Visa Integrity Fee for most nonimmigrant visas and a 59 percent increase to Employment Authorization Document fees (from $630 to $1,000). These Congressional fees apply on top of the DHS and DOL proposals. For a private employer hiring through the H-1B lottery, the financial picture is now: the existing $460 petition fee, plus the proposed $103,265 new fee, plus higher prevailing wages of approximately $14,000 annually, plus the Congressional fees.
Immigration advocates argue the combined cost structure would price out smaller employers and potentially reduce high-skilled worker hiring across sectors dependent on H-1B talent, from technology to healthcare to academic research. Large corporations may absorb these costs; smaller firms and startups may not.
Who Is Exempt and Why It Matters
The proposed DHS fee exempts cap-exempt employers including universities, nonprofit research institutions, and government research agencies, creating a two-tier cost structure. Cap-exempt H-1B petitions have no annual limit, and employers in this category do not pay the new $103,265 fee. The DOL wage increases apply to all employers, exempt and cap-subject alike.
This exemption structure shifts the cost burden almost entirely to private-sector employers competing in the H-1B lottery. Academic researchers and nonprofit scientists face higher prevailing wages but no $103k fee; technology companies and financial services firms face both. The gap may incentivize employers to partner with universities or relocate positions to nonprofit research arms to avoid the lottery entirely.
What Happens Next
The proposed rules are open for public comment as of late August 2026 and have not been finalized. Both the DHS and DOL proposals require federal agencies to review comment submissions and issue final rules, a process that typically takes several months to a year. Employers and industry groups have until the comment deadline to formally object or provide alternative proposals.
The actual implementation timeline remains uncertain. If finalized before Congress acts to overturn or modify them, the fees could take effect on future visa petition filings. Any final rule may differ from the proposal based on public comment and legal review.
Frequently Asked Questions
When do these fees take effect?
The proposals have not been finalized. They entered public comment periods in late August 2026 and may be modified before final rules are issued, which typically takes several months.
Will the fees apply to all H-1B workers?
No. The DHS fee applies only to cap-subject positions filed by private-sector employers—approximately 85,000 positions annually. Universities, nonprofits, and government agencies are exempt from the fee but not from the DOL wage increases.
Can employers challenge these fees in court?
A prior overseas H-1B hiring fee was struck down in court; the DHS designed this new fee to use different legal authority and potentially withstand similar challenges. However, litigation is possible once a final rule is issued.