DHS proposed new $103k fee for cap-subject H-1B petitions

On August 25, 2026, DHS published a Proposed Rule that would create a new $103,265 filing fee for cap-subject H-1B petitions. DHS states that the fee “would serve as a dedicated revenue mechanism to help recover a portion of the federal government’s costs of administering the lawful immigration system, including activities carried out by DHS, the U.S. Department of Justice (DOJ), the U.S. Department of State (DOS), and the U.S. Department of Labor (DOL).”

This new fee would be due at the time of filing and would be in addition to all currently existing USCIS filing fees for H-1B cap petitions. Both the 20,000 “master’s cap” and 65,000 “regular cap” lotteries would be subject to the fee, but the fee would not apply to cap-exempt institutions and H-1B petitions that have already been counted in the lottery.

This Proposed Rule would all but decimate the H-1B cap lottery program, making it nearly impossible for businesses to reasonably hire H-1B workers. Litigation similar to the previous $100k H-1B tax lawsuits is expected, but it is likely that this $103k H-1B cap fee will be in effect for the FY2028 H-1B cap season.

DHS has given individuals, companies, organizations, and other entities 30 days (until September 24, 2026) to comment on the Proposed Rule. Iandoli Desai & Cronin highly encourages those who will be impacted by the Proposed Rule to submit a comment on the Federal Register website.

Read the Proposed Rule or submit a comment here.