The Department of Homeland Security (DHS) has proposed a new rule that would impose a $103,265 fee on all H-1B cap-subject petitions, including those filed under the advanced degree exemption for individuals holding a master's or higher degree from a U.S. institution. This fee would be due at the time of filing and would be assessed in addition to all existing filing fees, premium processing fees, and other applicable charges. If finalized, the proposal would represent one of the most significant cost increases in the history of the H-1B program.

According to DHS, the fee is designed to help offset the federal government's costs of administering the broader lawful immigration system, including adjudications, fraud detection and national security vetting, systems modernization, records and fee collection operations, immigration court proceedings, consular visa processing, labor standards enforcement, and interagency coordination. Based on a projected volume of 85,000 cap-subject H-1B petitions per year, DHS estimates the fee could generate approximately $8.8 billion annually.

Importantly, the proposed fee would apply only to cap-subject petitions, meaning it would not affect H-1B filings by cap-exempt employers, such as certain nonprofit research organizations, governmental research organizations, and institutions of higher education. The annual H-1B cap remains limited to 65,000 visas, with an additional 20,000 reserved for individuals who have earned a master's degree or higher from a U.S. institution. Employers who rely on the cap-subject H-1B category for specialty occupation talent, particularly in technology, engineering, and finance, should anticipate a substantially higher cost of sponsorship if this rule is adopted as proposed.

While the rule remains in the proposal stage and is subject to a public comment period before any final action, employers and prospective H-1B beneficiaries should begin factoring this potential cost into their long-term hiring and immigration planning now. Businesses that regularly sponsor H-1B workers may want to reassess budgets, evaluate the timing of upcoming cap-subject filings, and consider whether cap-exempt alternatives may be available for certain positions.

This article is intended for general informational purposes only and does not constitute legal advice. Immigration regulations are subject to change, and the specifics of this proposed rule, including its effective date, final fee amount, and any exemptions, may be revised before finalization. For guidance on how this proposal may affect your specific hiring plans or pending petitions, please contact our team at 703-348-1663.

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