US Proposes $103,265 Fee for H-1B Visas

The U.S. Department of Homeland Security proposed a new $103,265 fee on Monday, August 24, 2026, for employers filing cap-subject H-1B visa petitions. The regulation aims to generate revenue for federal immigration operations following legal setbacks to earlier policies.

The proposed rule applies to all H-1B petitions subject to the annual statutory cap of 85,000 visas, including the 20,000 slots reserved for advanced degree holders. Higher education institutions, affiliated non-profits, and other cap-exempt organizations will be spared from the new assessment.

Unlike last year's presidential proclamation that targeted foreign workers hired from outside the country, the revised draft targets all cap-subject applicants regardless of location. The earlier policy was vacated by a federal court in Boston for imposing an unlawful tax without congressional authority, a decision currently under appeal.

Federal officials project the measure will generate approximately $8.78 billion annually from the roughly 85,000 annual cap-subject slots. Revenue would fund operations across multiple agencies, allocating $3.0 billion to U.S. Citizenship and Immigration Services and $2.96 billion to the Executive Office for Immigration Review.

The remaining funds would be distributed to the Department of Labor, Immigration and Customs Enforcement, the Department of State, and Customs and Border Protection. Under the draft rule, the fee would serve to cover administrative costs, national security vetting, benefit adjudications, and system modernizations.

"would serve as a dedicated revenue mechanism to help recover a portion of the federal government’s costs of administering the lawful immigration system," according to the proposed rule.

The Department of Homeland Security noted that it considered raising fees across all immigration petitions, but decided against it to avoid burdening non-employment applications. The agency estimates that 76 percent of small entities sponsoring H-1B workers would experience a significant economic impact.

The proposal is scheduled for publication in the Federal Register on August 25, 2026, opening a public comment period of 30 to 60 days. The agency is also reportedly reviewing a separate proposal to add a $100,000 charge for foreign students participating in Optional Practical Training.