The U.S. Department of Homeland Security proposed a new $103,265 fee on H-1B visa petitions filed by private employers competing for the annual visa cap, payable at filing and separate from existing fees. According to the proposed rule published August 25, 2026, the fee is not yet in effect; DHS must issue a final rule after the September 24, 2026 comment period closes before any employer would owe the charge.
The fee applies to all cap-subject H-1B petitions, including those filed under the advanced degree exemption (20,000 visas for U.S. master's degree holders or higher). Cap-exempt employers such as universities, university-affiliated nonprofits, and government research institutions would not pay it.
Table of Contents
- Who pays the fee and when
- Where the collected fees would go
- Which employers are most affected
- Current status and what happens next
- Frequently Asked Questions
Who pays the fee and when
The $103,265 fee targets only H-1B petitions filed by private employers who compete for the annual 65,000 general cap or the 20,000 advanced degree exemption visas. Universities, university-affiliated nonprofits, primary and secondary schools, nonprofit organizations conducting research, and government research institutions are entirely exempt.
The fee would be due when an employer files the petition with U.S. Citizenship and Immigration Services (USCIS), not when a visa is approved or the worker enters the country. DHS describes the charge as a "dedicated revenue recovery mechanism" for federal costs of administering the lawful immigration system across multiple agencies.
Where the collected fees would go
According to DHS's proposal, the agency projects collecting $8.8 billion in revenue and allocating it across six federal agencies. uscis would receive $3.0 billion (34.2%); the Department of Justice's Executive Office for Immigration Review would get $2.96 billion (33.7%); the Department of Labor would receive $1.21 billion (13.8%); Immigration and Customs Enforcement would get $1.05 billion (11.9%); the state Department would receive $484 million (5.5%); and Customs and Border Protection would get $76.2 million (0.9%). The allocation reflects DHS's estimate of costs distributed across the immigration system, with USCIS and the immigration courts processing the largest share of cases.
Which employers are most affected
DHS's own economic analysis found that 11,051 small entities—76% of the estimated 14,500 small companies that filed cap-subject H-1B petitions in fiscal year 2025—would face significant economic impact from the proposed fee. For a small employer hiring one foreign worker under the H-1B program, the $103,265 charge represents a substantial increase in sponsorship costs on top of existing USCIS filing fees, attorney fees, and recruitment expenses. Large employers and those filing for multiple workers can spread the cost across more positions, but the per-petition charge rises uniformly for all private employers regardless of size.
Current status and what happens next
The public comment period closes September 24, 2026. DHS will review all comments received and must issue a final rule before the fee takes effect. Until a final rule is published in the Federal Register, no employer owes the $103,265 charge. The timeline for a final rule is unknown. Proposed rules typically take months to finalize, and DHS may modify, narrow, or withdraw the proposal based on public comments. Employers should monitor the Federal Register and USCIS guidance for updates.
Frequently Asked Questions
Do universities or nonprofits have to pay this fee?
No. The fee applies only to cap-subject H-1B petitions filed by private employers. Universities, university-affiliated nonprofits, and nonprofit research organizations are exempt.
When will employers have to start paying?
Not yet. The proposal is under review and a final rule has not been issued. Until DHS publishes a final rule, the fee is not in effect and no employer owes it.