A $103,265 H-1B Fee Is on the Table: What Employers Should Do During the Comment Period

For employers that rely on the H-1B program to recruit specialized talent, next year’s immigration budget could look dramatically different.

On August 24, 2026, the Department of Homeland Security (DHS) announced a proposed $103,265 additional fee for H-1B cap-subject petitions. The proposed rule was published the following day and is now open for public comment.

The fee is not final. But with more than $100,000 potentially being added to the cost of each affected petition, employers should not wait for a final rule before evaluating what it could mean for future hiring.

Which H-1B Petitions Would Face the New Fee?

The proposal applies to H-1B cap-subject petitions, including those for beneficiaries selected under the advanced-degree exemption.

If finalized as proposed, the $103,265 would be paid when the H-1B petition is filed. It would be an additional charge, not a replacement for existing H-1B filing fees and other applicable payments.

DHS estimates that the fee could generate approximately $8.8 billion annually based on 85,000 cap-subject petitions.

Cap-exempt H-1B petitions would not be subject to the proposed additional fee. This includes qualifying petitions filed by certain institutions of higher education, nonprofit research organizations, and governmental research organizations.

For employers accustomed to treating H-1B sponsorship as one component of a broader recruitment budget, that distinction could become financially significant.

Start Modeling the FY 2028 Cap Season Now

Employers do not need to assume the proposal will become final to begin contingency planning.

Human resources, mobility, finance, and legal teams can model the impact of a $103,265-per-petition increase on future sponsorship decisions. An employer anticipating five cap-subject petitions, for example, could face more than $500,000 in new fees before accounting for existing immigration costs.

This is also an appropriate time to identify positions or employees for whom other immigration strategies may be available.

Depending on the worker’s citizenship, qualifications, current status, and relationship to the employer, alternatives may include O-1 visas for individuals with extraordinary ability, E-3 visas for qualifying Australian professionals, TN status for eligible Canadian and Mexican professionals, or L-1 visas for qualifying intracompany transferees.

Employers may also want to examine whether any hiring relationships legitimately qualify for existing H-1B cap exemptions. These are highly fact-specific strategies, not interchangeable substitutes for H-1B sponsorship.

H-1B Fee

Employers Can Comment Before September 24

DHS is accepting public comments on the proposal through September 24, 2026.

Comments must be submitted through the Federal eRulemaking Portal and reference U.S. Citizenship and Immigration Services and DHS Docket No. USCIS-2026-0298.

DHS specifically encourages commenters to identify the portion of the proposed rule they address, explain the reason for any recommended change, and provide supporting data, information, or authority.

For employers, that creates an opportunity to provide concrete information about how the proposed fee could affect recruiting, workforce planning, budgets, operations, or access to specialized talent.

Do Not Wait for the Final Rule to Assess Your Options

Whether the $103,265 fee is finalized as proposed, modified, or abandoned, employers now have reason to reconsider how heavily future workforce plans depend on the H-1B cap process.

Sharma Law Associates helps New York immigration attorneys evaluate employment-based immigration strategies and plan for changes that may affect their ability to recruit and retain foreign professionals.

If the proposed H-1B fee could affect your FY 2028 hiring strategy, call Sharma Law Associates at 646-760-6339, contact us online, or schedule a consultation to begin evaluating your options before the next cap season.

 

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