On August 25, 2026, the Department of Homeland Security (DHS) will formally publish a proposed rule that would impose a new $103,265 filing fee on all H-1B cap-subject petitions (85,000 annually), including petitions filed under the advanced degree exemption. The proposed fee would be charged in addition to all existing H-1B filing fees. Cap-exempt H-1B petitions would not be affected.   

According to DHS, the proposed fee is intended to generate approximately $8.8 billion annually to support the costs of administering the U.S. immigration system. Unlike traditional USCIS filing fees, the revenue would be allocated across multiple federal agencies, including U.S. Citizenship and Immigration Services (USCIS), U.S. Immigration and Customs Enforcement (ICE), U.S. Customs and Border Protection (CBP), the Department of State (DOS), the Department of Labor (DOL), and the Executive Office for Immigration Review (EOIR).  

The proposal represents a significant departure from historical USCIS fee-setting practices and is expected to receive substantial attention from employers, business organizations, and other immigration stakeholders. DHS acknowledges that the proposed fee could reduce H-1B demand and may have a significant economic impact on many employers.  

Key Takeaways from the Proposed Rule  

• The proposed rule is expected to be challenged via litigation in Federal Courts. 
• The proposed rule would impact regular H-1B cap petitions (65,000) and advanced degree exemption (master’s cap) petitions (20,000).The fee would not apply to cap-exempt H-1B petitions, including those filed by qualifying institutions of higher education, affiliated nonprofit entities, nonprofit research organizations, and governmental research organizations.The fee would not apply to H-1B Extensions, H-1B Amendments, or H-1B Change of Employer petitions, as these are not subject to the annual H-1B cap. 
• Employers would still pay all existing fees.  The proposed $103,265 fee would be in addition to all currently applicable H-1B filing fees, including the I-129 Filing Fee, Asylum Program Fee, ACWIA Fee, Fraud Prevention and Detection Fee, and Premium Processing Fee (if requested).  
• It is important to note that this is only a proposed rule and has not yet taken effect. DHS is accepting public comments for 30 days following publication in the Federal Register before issuing any final regulation. Accordingly, employers should continue to follow current H-1B filing requirements unless and until a final rule is implemented.  

Foster LLP is closely monitoring this proposed rule and is available to assist employers in evaluating potential impacts, developing immigration strategies, and navigating future compliance requirements. We will continue to provide updates through our Immigration Updates©, articles, and blogs at www.fosterglobal.com.