The Department of Homeland Security proposed a $103,265 fee on H-1B cap-subject petitions on 25 August 2026, opening a public comment period through 24 September. The fee is not in effect, would stack on the separate $100,000 proclamation fee if that is reinstated, and falls hardest on India, the largest source of H-1B approvals.
In this guide3 sections
What DHS actually filed#
USCIS published the proposed rule, "Fee for Certain H-1B Petitions," in the Federal Register as document 2026-17324 (91 FR 54817). It would set a $103,265 fee on every H-1B petition subject to the annual numerical cap — the 65,000 regular slots plus the 20,000 reserved for holders of a US master's degree or higher. DHS's stated purpose is to recover the government's cost of administering the immigration system across USCIS, CBP, ICE, EOIR, the State Department and the Department of Labor. It is a Notice of Proposed Rulemaking, not a final rule: DHS must first review comments filed by 24 September 2026, and a final version — if issued — would still need to clear likely court challenges before taking effect.
Separate from the $100,000 fee, and could stack#
This filing is legally distinct from the $100,000 H-1B fee created by a 2025 presidential proclamation. That fee is currently unenforced — a federal court in Massachusetts vacated the guidance implementing it on 8 June 2026, and the First Circuit Court of Appeals declined to pause that ruling on 24 July. If the proclamation fee is ultimately reinstated on appeal while this new $103,265 fee also takes effect, an employer could face both on a single petition — over $200,000 combined, according to Fragomen's analysis of the filing.
What is exempt, and what it means for India#
Cap-exempt filings are untouched: H-1B extensions, and petitions from universities, nonprofit or government research organizations. Everyone else in the annual lottery — including first-time petitions for advanced-degree holders — would face the new fee if the rule is finalized. India already receives the largest share of approved H-1B petitions of any single country, so a fee this size, layered onto an employer's existing costs, would land disproportionately on Indian applicants and the US employers who sponsor them, IT services firms in particular.
Nothing changes for a B1/B2 tourist, student or any other Indian traveller today. For anyone on an H-1B track, the only actionable step right now is watching whether DHS finalizes the rule before the next cap season opens in spring 2027.
VisaGyan is an independent journal, not affiliated with the US government. Read the proposed rule directly at federalregister.gov before making any employment decision.
Frequently asked questions
- Is the $103,265 H-1B fee in effect right now?
- No. It is a proposed rule (NPRM) published in the Federal Register on 25 August 2026. DHS must review public comments, filed through 24 September 2026, before it can issue a final rule — and nothing is owed under this proposal today.
- Does this replace the existing $100,000 H-1B fee?
- No, they are legally separate. The $103,265 fee proposed here would apply in addition to the $100,000 payment created by a 2025 presidential proclamation — a fee currently blocked in court. If both eventually stand, a single petition could face over $200,000 combined.
- Who has to pay the fee — the worker or the employer?
- The petitioning employer, as with all H-1B filing fees. It would apply only to cap-subject petitions — those competing in the annual lottery for the 65,000 regular slots plus 20,000 reserved for US advanced-degree holders — not to extensions or petitions already working at a cap-exempt employer such as a university.
- Does this affect an Indian citizen''s B1/B2 tourist visa?
- No. This proposal touches only H-1B specialty-occupation work petitions. B1/B2 visitor visas, student visas and other nonimmigrant categories are unaffected by this specific rule.