The Department of Homeland Security (DHS) has proposed a new rule that would add a $103,265 fee to every H-1B cap-subject petition — including petitions filed under the advanced degree (master’s) exemption. If finalized, this would be one of the largest single fee increases in the history of the H-1B program, and it would apply on top of every other fee already required to file.

What DHS Is Proposing

Under the proposed rule:

• A $103,265 fee would apply to all cap-subject H-1B petitions, due at the time of filing.
• The fee applies in addition to all existing filing fees, not in place of them.
• The advanced degree exemption — the additional 20,000 slots set aside for holders of a U.S. master’s degree or higher — would not shield a petition from the new fee.
• Cap-exempt petitions would not be subject to the fee, including petitions filed by certain nonprofit research organizations, governmental research organizations, and institutions of higher education.

The H-1B cap itself is unchanged: 65,000 visas/status grants under the regular cap, plus 20,000 reserved for individuals with a qualifying U.S. master’s degree or higher.

Why DHS Says It’s Doing This

DHS frames the fee as a cost-recovery measure. According to the agency, the revenue would help fund the broader machinery behind the lawful immigration system, including adjudication of immigration benefits, fraud detection and national security vetting, systems modernization, records and fee collection operations, immigration court operations, consular visa processing, labor standards enforcement, and interagency coordination.

DHS estimates the fee would generate roughly $8.8 billion annually, based on a projected volume of about 85,000 cap-subject H-1B petitions per year.

“The proposed H-1B fee is intended to recover the costs incurred across the federal government to adjudicate, vet, and support lawful immigration programs that otherwise must be funded by taxpayers.” — Zach Kahler, USCIS spokesperson

Who This Affects

This proposal is squarely aimed at cap-subject petitions — the pool of employers registering candidates in the annual H-1B lottery and filing petitions for selected beneficiaries. It does not, as proposed, apply to petitions that are exempt from the cap in the first place, such as those filed by qualifying nonprofit research organizations, governmental research organizations, and institutions of higher education.

What Happens Next

This is a Notice of Proposed Rulemaking (NPRM) — it is not yet final. Proposed rules of this kind typically go through a public comment process before DHS can adopt, revise, or withdraw them. Employers, universities, and prospective H-1B workers should watch the rulemaking closely, as the final fee amount, effective date, and scope could all change before the rule takes effect.

What Employers and Prospective H-1B Workers Should Do Now

• Budget early. If your organization sponsors H-1B workers, start planning for a materially higher per-petition cost well before the next registration cycle.
• Review your cap-subject vs. cap-exempt status. Employers affiliated with universities or qualifying research institutions should confirm whether their petitions may fall outside the cap — and outside this fee.
• Don’t wait to engage counsel. Timing matters in H-1B cases. Understanding how this rule could affect your hiring plans now will put you in a stronger position once it’s finalized.
• Watch the comment period. Employers and stakeholders with concerns about the proposed fee may have the opportunity to submit comments before the rule is finalized.

How Kublan Khan PLC Can Help

Our immigration team is monitoring this rulemaking closely and will provide updates as the process moves forward. If you are an employer planning H-1B sponsorship, or an individual with questions about how this proposal could affect your case, contact us at (703) 854-1081 to discuss your options.

This article is provided for general informational purposes only and does not constitute legal advice. Immigration rules are subject to change, and outcomes depend on individual circumstances. Contact our office to discuss your specific situation.