US government wants companies to pay more while filing H-1B visas, what the revised fee hike proposal says

The US Department of Homeland Security (DHS) has unveiled a proposal that would dramatically increase costs for employers who are sponsoring foreign workers under the H-1B visa program. According to the draft rule published for public inspection, companies filing cap-subject H-1B petitions would face a new standalone fee of $103,265 per petition, along with the existing charges. DHS says that the measure is aimed to recovering immigration system costs across multiple agencies.

What the revised H-1b visa proposal actually says

According to the notice, DHS “proposes to establish a $103,265 fee, payable at the time of filing, for all H-1B cap-subject petitions, including those eligible for the advanced degree exemption, which would be imposed in addition to all other applicable fees or payments.” In plain terms, this isn’t a replacement for existing H-1B costs — it’s a new, standalone charge stacked on top of everything employers already pay to file a petition.The fee would apply to the 65,000 visas issued under the regular annual cap as well as the 20,000 visas reserved for foreign workers holding a qualifying US master’s degree or higher. It would not apply to cap-exempt petitions, which cover many roles at universities, nonprofit research organizations, and government research institutions.

How DHS landed on $103,265 fee

The figure isn’t arbitrary. DHS calculated it by dividing the total costs it wants to recover — $8,777,488,035 — by a projected annual filing volume of 85,000 cap-subject petitions, arriving at $103,264.57, which the agency then rounded to the nearest $5 increment consistent with its past fee-setting practice.The agency argues this approach is justified because H-1B petitioners are, in its words, an applicant pool that is “most willing and able to pay an additional fee” compared with other immigration benefit requestors, given that employers are already required to pay a certified prevailing wage to the workers they sponsor.

Separate from — and stackable with — the $100,000 proclamation fee

This proposal is legally distinct from the $100,000 payment imposed last year under Presidential Proclamation 10973, which was struck down in June 2026 by a federal judge in Massachusetts (a ruling now under appeal at the First Circuit). DHS is explicit that the new $103,265 fee relies on different statutory authority — primarily sections 286(j) and (m) of the Immigration and Nationality Act — rather than the president’s proclamation power used for the earlier fee.Notably, the rule states that if the proclamation’s payment requirement is ever reinstated through the appeals process, employers subject to both would have to pay both amounts — the $100,000 proclamation fee and the new $103,265 rule-based fee — on top of each other. The proclamation itself is due to expire in September unless extended, and DHS notes this new rule is intended to take its place going forward.

Impact on employers

DHS argues that employers sponsoring H‑1B workers generally have the resources to absorb the fee, noting median annual wages of $133,000 for H‑1B employees. However, the government acknowledges the fee may reduce filings, particularly among smaller firms. Public comments on the proposal are open until 30 days after publication in the Federal Register (August 25, 2026).

Where the money would go

Unlike most past USCIS fee increases, which funded USCIS alone, this proposal spreads the roughly $8.8 billion in projected annual revenue across six federal agencies involved in different parts of the immigration system:* USCIS — 34.2% ($3.0 billion), covering adjudications, staffing increases, and IT modernization* EOIR (the Justice Department’s immigration courts) — 33.7% ($2.96 billion), funding roughly 8,400 new positions including immigration judges* DOL — 13.8% ($1.21 billion), covering labor certification and wage-enforcement functions* ICE — 11.9% ($1.05 billion), covering vetting and the Student and Exchange Visitor Program* DOS — 5.5% ($484 million), covering consular vetting and fraud-prevention systems* CBP — 0.9% ($76.2 million), covering biometric entry-exit matchingDHS frames this interagency cost-sharing as consistent with its statutory authority to recover the “full costs” of administering the lawful immigration system — not just the direct cost of processing a single petition, but the broader web of vetting, enforcement, and court functions connected to it.