The Department of Homeland Security (DHS) has published a proposed rule that would impose a new $103,265 filing fee on all H-1B cap-subject petitions, including petitions filed under the advanced degree exemption (master’s cap). If implemented, the fee would represent one of the most significant increases in employment-based immigration filing costs in U.S. history.
The proposal follows recent litigation that blocked the administration’s earlier effort to require a $100,000 payment for certain H-1B workers entering from abroad. Unlike that initiative, the new proposal would apply broadly to cap-subject H-1B petitions regardless of where the worker is located.
What Is Being Proposed?
DHS proposes adding a new fee of $103,265 to all H-1B cap-subject petitions filed with USCIS. The fee would be:
- Required in addition to all existing H-1B filing fees;
- Applicable to both regular cap and master’s cap petitions; and
- Paid at the time the H-1B petition is filed.
The proposal would not apply to:
- Cap-exempt H-1B petitions;
- Universities and certain affiliated nonprofit institutions that qualify for cap exemption; or
- Other H-1B petitions exempt from the annual numerical cap.
Why DHS Says the Fee Is Necessary
According to DHS, the proposed fee is intended to generate revenue to help fund the broader lawful immigration system across multiple federal agencies.
The proposal would support activities performed by:
- USCIS
- U.S. Customs and Border Protection (CBP)
- Immigration and Customs Enforcement (ICE)
- Executive Office for Immigration Review (EOIR)
- Department of State (DOS)
- Department of Labor (DOL)
DHS estimates that immigration-related activities across these agencies account for approximately $8.8 billion in annual costs that it seeks to recover through the proposed fee.
Revenue Projections
The agency projects:
- Approximately 85,000 cap-subject H-1B petitions annually; and
- Approximately $8.78 billion in annual revenue if all cap-subject petitions remain filed at current levels.
The proposed revenue allocation would be distributed roughly as follows:
| Agency | Proposed Allocation |
|---|---|
| USCIS | $3.0 billion |
| EOIR | $2.96 billion |
| ICE | $1.05 billion |
| DOL | $1.21 billion |
| DOS | $484 million |
| CBP | $76 million |
Impact
The proposed rule would dramatically increase the cost of sponsoring cap-subject H-1B workers.
DHS acknowledges that the proposal would have a significant impact on employers, including small businesses. The agency estimates that approximately 76% of small entities filing H-1B cap petitions would experience a significant economic impact under the proposal.
The fee would come on top of existing H-1B filing costs, anti-fraud fees, asylum program fees, ACWIA fees, registration fees, premium processing fees (if applicable), and other immigration-related expenses.
What’s Next
The proposed rule is scheduled for publication in the Federal Register on August 25, 2026.
DHS will accept public comments for 30 days following publication before determining whether to issue a final rule.
Erickson Insights and Analysis
Erickson Immigration Group will continue monitoring developments and sharing updates as more news is available. Please contact your employer or EIG attorney if you have questions about anything we’re reporting above or if you have case-specific questions.