H-1B $103,265 Fee Proposed in 2026: Who Must Pay and What Happens Next?
Under a Notice of Proposed Rulemaking published in the Federal Register on August 25, 2026, DHS proposes an additional $103,265 fee for every H-1B cap-subject petition, including petitions eligible for the U.S. master's-degree or advanced-degree exemption.
But there is an important point that employers and H-1B applicants should understand immediately:
The $103,265 fee is not currently in effect.
It is a proposed rule. DHS is accepting public comments until September 24, 2026, after which the agency would have to consider the comments and determine whether to issue a final rule.
The proposal could nevertheless have a major impact on U.S. employers, international students, Indian technology professionals, startups, universities, and other organizations that rely on the H-1B program.
What Is the Proposed $103,265 H-1B Fee?
DHS is proposing to add a new $103,265 fee to H-1B petitions that are subject to the annual H-1B numerical cap.
The proposed payment would be:
$103,265 for each qualifying H-1B cap-subject petition;
payable when the petition is filed;
in addition to the other applicable H-1B filing fees and payments; and
applicable to both the regular H-1B cap and petitions eligible for the advanced-degree exemption.
The proposed regulation would add the fee to the DHS fee regulations at 8 CFR § 106.2.
This means the $103,265 would not replace the existing H-1B filing costs. It would be an additional charge.
Is the $103,265 H-1B Fee Effective Right Now?
No.
This is probably the most important part of the entire proposal.
DHS published the measure as a Notice of Proposed Rulemaking, rather than a final rule. The Federal Register identifies it as a proposed rule and gives the public until September 24, 2026, to submit comments.
Therefore, employers should not assume that they currently need to submit an additional $103,265 payment simply because the proposal has been published.
A proposed regulation normally goes through a rulemaking process before it becomes binding.
The basic process is:
Proposed rule published
↓
Public comment period
↓
DHS reviews comments
↓
DHS decides whether to modify, withdraw, or finalize the proposal
↓
Final rule, if adopted
↓
Implementation under the final rule
The exact timing and final requirements cannot be known until DHS takes further action.
Who Would Have to Pay the Proposed Fee?
If the rule is finalized substantially as proposed, the additional fee would apply to H-1B cap-subject petitions.
This includes petitions subject to the regular annual H-1B allocation.
It also includes petitions eligible for the advanced-degree exemption, commonly called the master's cap.
DHS expressly states that the proposed $103,265 fee would apply to all H-1B cap-subject petitions, including those eligible for the advanced-degree exemption under INA § 214(g)(5)(C).
That distinction matters because some people may incorrectly assume that obtaining a U.S. master's degree would avoid the new fee.
Under the proposal, it would not.
Does the H-1B Master's Cap Avoid the $103,265 Fee?
No, not under the current proposal.
The H-1B program generally has a regular statutory allocation of 65,000 visas, with an additional 20,000 allocation for certain beneficiaries who have earned a qualifying master's degree or higher from a U.S. institution of higher education.
The proposed $103,265 fee would cover both categories.
In other words:
Regular H-1B cap: Proposed $103,265 additional fee
U.S. master's-degree exemption: Proposed $103,265 additional fee
The proposed rule specifically includes advanced-degree-exempt petitions.
This could be particularly significant for international graduates of U.S. universities who hope to move from F-1 status and OPT into H-1B status.
Who Would Not Pay the Proposed $103,265 Fee?
The proposal is aimed specifically at cap-subject H-1B petitions.
DHS states that the proposed fee would not apply to cap-exempt H-1B petitions.
Cap-exempt H-1B cases can include certain petitions associated with:
institutions of higher education;
qualifying nonprofit research organizations;
qualifying governmental research organizations; and
other circumstances recognized under the H-1B cap-exemption rules.
However, employers should not assume that every nonprofit organization is automatically exempt.
The relevant question is whether the particular H-1B petition is legally cap-exempt.
That distinction is extremely important.
A nonprofit employer and a cap-exempt employer are not necessarily the same thing.
What About H-1B Extensions?
The proposed fee is designed for cap-subject petitions.
Many H-1B extensions are not cap-subject because the worker has already been counted against the H-1B numerical cap.
Therefore, a typical extension of an already-counted H-1B worker would generally not become subject to this particular proposed fee merely because it is an H-1B petition.
The same basic distinction applies to many other H-1B filings that are exempt from the annual numerical cap.
The proposed rule specifically says DHS is not applying the additional fee to all H-1B petitions or all Form I-129 petitions.
That means the phrase “$103,265 H-1B fee” should not be interpreted as meaning every H-1B filing will cost an additional $103,265.
The proposal is much narrower.
Does the Fee Apply to Small Businesses?
Potentially, yes.
DHS proposes to apply the fee to H-1B cap-subject petitioners regardless of their size.
The agency's regulatory analysis specifically discusses the impact on small entities.
DHS identified 28,649 unique entities that filed initial cap-subject H-1B petitions in FY 2025. Of those, 14,541 were classified as small entities. DHS estimates that 11,051 small entities could experience a significant economic impact from the proposed fee.
This is important because the $103,265 amount could be especially significant for startups and smaller U.S. companies.
A six-figure additional immigration cost could affect whether a smaller employer decides to sponsor a foreign worker at all.
Why Is DHS Proposing Such a Large Fee?
DHS says the purpose is to generate revenue to help cover costs associated with administering the lawful immigration system.
The proposed fee is not limited to the cost of processing an individual H-1B petition.
DHS says the revenue would support immigration-related activities involving several federal agencies, including:
USCIS;
U.S. Customs and Border Protection;
U.S. Immigration and Customs Enforcement;
the Executive Office for Immigration Review;
the Department of State; and
the Department of Labor.
DHS relies in part on its authority under the Immigration and Nationality Act, including INA § 286, concerning immigration-related fees and cost recovery.
How Much Money Could the Fee Generate?
The proposed fee is extraordinarily large when multiplied across the H-1B program.
DHS assumes approximately 85,000 cap-subject H-1B petitions would be subject to the additional fee each year.
At $103,265 per petition, DHS projects approximately:
$8.78 billion in annual revenue.
The Federal Register gives the projected calculation as $8,777,525,000.
That would make the proposed fee one of the most consequential changes to the financial structure of the H-1B program.
Is This the Same as the $100,000 H-1B Fee?
No.
This distinction is extremely important.
The proposed $103,265 fee is a separate regulatory proposal.
DHS itself explains that the proposed fee would be separate from other applicable payments, including any payment required under a presidential proclamation.
Therefore, people should not simply describe the proposal as a new version of the previous $100,000 H-1B payment.
The two measures have different legal mechanisms and should be analyzed separately.
The proposed $103,265 fee is being presented as a regulatory fee intended to recover immigration-system costs.
Would Employers Pay $103,265 Plus the Existing H-1B Fees?
If the rule becomes final as currently proposed, yes.
The $103,265 would be an additional fee.
It would not replace the ordinary filing fees and other applicable statutory payments associated with an H-1B petition.
DHS expressly states that the proposed amount would be imposed in addition to all other applicable fees or payments.
Therefore, an employer considering a cap-subject H-1B petition would have to calculate the complete cost under the final rules rather than treating $103,265 as the entire H-1B filing cost.
What Happens to International Students on OPT?
The proposal could be particularly important for international students who are working in the United States after graduation.
Many F-1 students use Optional Practical Training and, where eligible, STEM OPT before seeking H-1B sponsorship.
If an employer ultimately files a cap-subject H-1B petition for such a worker and the proposed fee becomes final, the employer could face the additional $103,265 charge.
However, the proposal does not mean that every international student on F-1 or OPT must personally pay $103,265.
The proposed charge is tied to the qualifying H-1B petition.
Employers, students, and universities should therefore avoid assuming that the proposal creates a direct personal payment obligation for every international student.
What Does the Proposal Mean for Indian H-1B Applicants?
The proposal could be particularly important for Indian professionals because India has historically been one of the largest sources of H-1B beneficiaries.
Technology, engineering, consulting, healthcare, finance, and other specialized occupations can involve H-1B sponsorship.
For an Indian professional selected in the H-1B process, the financial impact would largely fall on the sponsoring employer if the proposed fee becomes effective.
But the economic consequences could extend beyond the employee.
Employers may reconsider:
whether to sponsor a candidate;
whether to hire internationally;
whether to transfer work;
whether to use another lawful immigration category;
whether to retain a worker after OPT; or
whether the position can be filled by another qualified worker.
The actual effect will depend on what Congress, DHS, courts, employers, and the market do next.
What Should Employers Do Right Now?
Because the $103,265 fee is not currently effective, employers should not automatically add the proposed fee to every current H-1B filing.
Instead, employers should monitor the rulemaking process carefully.
Businesses considering future H-1B sponsorship should also distinguish between:
Cap-subject petition
and
Cap-exempt petition.
That distinction could determine whether the proposed fee applies.
Employers should also review the official USCIS fee schedule and any final rule before submitting a petition.
Can the Public Comment on the Proposed Rule?
Yes.
DHS has opened a formal public-comment period.
The deadline is:
September 24, 2026.
Comments must be submitted through the federal rulemaking process identified in the Federal Register. DHS states that comments should identify the agency and the DHS docket number USCIS-2026-0298.
Employers, workers, universities, immigration organizations, industry groups, and other interested parties can therefore participate in the rulemaking process.
A public comment is different from simply posting an opinion on social media.
Comments submitted through the official process become part of the regulatory record.
Could the $103,265 Fee Be Changed Before It Becomes Final?
Yes.
Because this is a proposed rule, DHS can consider public comments and potentially:
finalize the proposal as written;
modify the amount;
modify the categories covered;
modify exemptions;
change implementation details; or
withdraw the proposal.
No one should assume that the proposed text necessarily represents the final law.
That is one reason employers and applicants should monitor official announcements rather than relying on social-media summaries.
Could the Rule Be Challenged in Court?
A final rule could potentially face legal challenges.
However, it would be premature to say that a lawsuit will definitely succeed or that the proposal will definitely be struck down.
DHS has expressly identified statutory authority that it believes supports the proposed fee, including provisions of the INA concerning immigration fees and cost recovery.
Whether those authorities ultimately support the precise structure and amount of the fee could become an issue if the rule is finalized and challenged.
The legal arguments would likely depend on the final rule, its statutory basis, the administrative record, and the claims raised by challengers.
What Should H-1B Applicants Do Now?
H-1B applicants should not panic simply because the $103,265 proposal has been published.
For now:
Do not assume the $103,265 fee is currently payable.
Continue following your employer's immigration instructions.
Check USCIS announcements for changes to filing requirements.
Determine whether your prospective H-1B petition is cap-subject or cap-exempt.
If you are an international student, continue maintaining valid F-1/OPT status and follow the requirements applicable to your current status.
If your case involves unusual circumstances, obtain advice from a qualified immigration attorney.
The proposal is significant, but it is still a proposal.
A Simple Example
Suppose a U.S. technology company wants to sponsor a foreign professional through the annual H-1B cap.
If the employee is selected and the employer files a cap-subject H-1B petition, the proposed rule would add:
$103,265
to the existing applicable H-1B filing costs.
The employer would therefore need to budget for the proposed fee in addition to the other required fees.
Now consider a different employer that qualifies for an H-1B cap exemption and files a genuinely cap-exempt petition.
The proposed $103,265 fee would not apply under the current proposal.
This example demonstrates why the classification of the petition matters more than simply asking whether the worker has an H-1B.
What Happens Next?
The immediate deadline is September 24, 2026, when the public-comment period closes.
After that, DHS will have to consider the regulatory record before deciding what to do with the proposal.
Possible outcomes include a final rule, a modified rule, or withdrawal.
If DHS ultimately finalizes the regulation, the final rule should explain when the fee becomes effective and exactly which petitions are covered.
Until then, the $103,265 amount should be described accurately as a proposed H-1B fee, not an already-effective filing requirement.
Frequently Asked Questions
Is the $103,265 H-1B fee effective now?
No. As of August 31, 2026, it is a proposed rule rather than an effective fee requirement.
When was the proposal published?
The proposed rule was published in the Federal Register on August 25, 2026.
When is the public-comment deadline?
The deadline is September 24, 2026.
Does the proposed fee apply to the H-1B master's cap?
Yes. The proposal expressly includes petitions eligible for the advanced-degree exemption.
Does the proposed fee apply to cap-exempt H-1B petitions?
No. DHS specifically proposes not to require the additional fee for cap-exempt H-1B nonimmigrants.
Does the $103,265 replace existing H-1B fees?
No. It is proposed as an additional fee on top of other applicable fees and payments.
How much revenue does DHS expect?
DHS projects approximately $8.78 billion in annual revenue based on an estimated 85,000 qualifying petitions.
Do H-1B applicants personally have to pay $103,265?
The proposal is structured as a fee on the qualifying H-1B petition filed by the petitioner. It should not be described as a universal personal payment required from every H-1B worker.
Will the proposal definitely become law?
No. It is a proposed regulation. DHS must consider the public comments and take further rulemaking action before any final requirements can be known.
Conclusion
The proposed $103,265 H-1B fee is one of the most significant developments in U.S. employment immigration in 2026.
If finalized substantially as proposed, it would add a six-figure cost to each H-1B cap-subject petition, including petitions eligible for the U.S. advanced-degree exemption.
But the most important point for employers and applicants right now is simple:
The $103,265 fee is proposed, not currently effective.
The next major date is September 24, 2026, when the public-comment period closes.
Until DHS issues further action, employers should continue to follow the current USCIS filing requirements and should not treat the proposed amount as an already-effective universal H-1B charge.
The proposal could still change before becoming final, and any final rule could also face legal challenges.
For that reason, anyone planning an H-1B filing should check the latest official USCIS and Federal Register information before making financial or immigration decisions.
Official Sources
U.S. Federal Register — Fee for Certain H-1B Petitions
Primary source for the August 25, 2026 proposed rule, $103,265 fee, covered H-1B cap-subject petitions, advanced-degree exemption, legal authority, economic analysis, and rulemaking details.
Federal Register — Fee for Certain H-1B Petitions (91 FR 54817)
U.S. Citizenship and Immigration Services — DHS Proposes Additional H-1B Fee
Official USCIS source for the proposed additional H-1B fee.
Regulations.gov — DHS Docket USCIS-2026-0298
Official federal rulemaking docket for the proposed H-1B fee, including public comments and subsequent documents.
Regulations.gov — DHS-2026-0298
U.S. Citizenship and Immigration Services — H-1B Specialty Occupations
Official USCIS information about the H-1B program, eligibility, petitions, and related requirements.
USCIS — H-1B Specialty Occupations
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