The bottom line. DHS proposes a new $103,265 fee on all H-1B cap-subject petitions, including those for advanced degree holders, to fund interagency immigration system costs. Comments are due by September 24, 2026.
The Department of Homeland Security (DHS) published a notice of proposed rulemaking on August 25, 2026, proposing a new $103,265 fee for all H-1B cap-subject petitions filed with U.S. Citizenship and Immigration Services (USCIS). The fee would apply in addition to all other existing filing and statutory fees.
The proposed fee is designed to recover approximately $8.8 billion annually in costs attributed to administering the lawful immigration system across USCIS, U.S. Immigration and Customs Enforcement (ICE), U.S. Customs and Border Protection (CBP), the Executive Office for Immigration Review (EOIR), the Department of State (DOS), and the Department of Labor (DOL). DHS projects the fee would apply to an annual volume of 85,000 petitions.
What the Rule Changes
The rule would add a new paragraph to 8 CFR 106.2 requiring the $103,265 fee for all H-1B cap-subject petitions, including those eligible for the advanced degree exemption under INA section 214(g)(5)(C). The fee would not apply to cap-exempt petitions, such as those filed by institutions of higher education, nonprofit research organizations, or government research organizations.
DHS said it chose to target H-1B cap-subject petitioners because they generally have more ability to pay compared to other benefit requestors. The agency cited median annual compensation of $133,000 for approved H-1B beneficiaries in FY 2025 and noted that petitioning employers are required to pay a statutorily mandated wage.
Cost Basis and Revenue Allocation
DHS identified total annual costs of approximately $8.78 billion to be recovered through the fee. The cost basis includes $3.0 billion for USCIS operations, $1.05 billion for ICE activities, $76.2 million for CBP's Traveler Verification Service, $2.96 billion for EOIR immigration court operations, $484 million for DOS consular and vetting activities, and $1.21 billion for DOL labor certification and enforcement programs.
The proposed fee amount was calculated by dividing the total costs to be recovered by the projected fee-paying volume of 85,000 petitions. DHS said it would execute reimbursement agreements with other agencies to allocate the revenue based on actual expenses incurred.
Demand and Economic Impact
DHS estimates the rule would create annual quantified costs of approximately $8.8 billion over a 10-year period of analysis. The agency cited an analysis suggesting H-1B petitioners would be willing to pay a one-time fee ranging from $100,000 to $200,000 to hire a foreign-born worker, and projected that demand for H-1B visas would not fall below 85,000 even with the proposed fee.
In its regulatory flexibility analysis, DHS estimated that 11,051 small entities — 76 percent of the 14,541 small entities that filed cap-subject petitions in FY 2025 — would experience a significant economic impact from the proposed fee.
Related Rulemakings
DHS noted the proposed fee is separate from the $100,000 payment required by Presidential Proclamation 10973, which is currently subject to litigation. The agency also acknowledged potential overlap with other pending rules, including DOL's proposed prevailing wage methodology changes and CBP's 9-11 Biometric Fee rule, but said no conflicts or duplications have been identified.
What This Means Right Now
Petitioners filing H-1B cap-subject petitions would need to pay the proposed $103,265 fee in addition to all current fees, including the registration fee, base filing fee, and any statutory fees.
The fee would apply only to cap-subject petitions; cap-exempt employers such as universities and nonprofit research organizations would not be affected.
Interested parties may submit comments through the Federal eRulemaking Portal by September 24, 2026, referencing DHS Docket No. USCIS-2026-0298.
The fee would not take effect until a final rule is published, and DHS said it may adjust the calculations based on intervening policy changes.