Proposed $103,265 H-1B Fee Could Significantly Increase Hiring Costs

The U.S. Department of Homeland Security (DHS) has proposed a significant increase in the cost of certain H-1B employment petitions. The proposal was published in the Federal Register on August 24, 2026, and is subject to a 30-day public comment period before DHS can consider issuing a final rule. The proposal’s final scope and effective date remain subject to change.

The proposed $103,265 fee follows a $100,000 H-1B payment requirement announced by the administration in 2025. The earlier measure was challenged in federal court, and courts subsequently blocked its collection. The new DHS proposal would establish a substantially similar charge through the federal rulemaking process.

H-1B workers can be particularly important to contractors competing for specialized technical talent, including positions involving engineering, information technology, cybersecurity, science, mathematics and other specialty occupations. The potential financial impact is substantial. The proposed $103,265 charge would be in addition to other applicable immigration filing costs and legal expenses. For a small or mid-sized contractor, that additional expense could materially affect the economics of hiring or retaining an H-1B worker.

The H-1B program remains subject to annual numerical limits of 65,000 regular H-1B visas, plus 20,000 additional visas for qualifying individuals with U.S. master's degrees or higher. Demand for the program has also been significant:

FY 2023: 483,972 H-1B registrations
FY 2024: 780,884 registrations
FY 2025: 470,342 registrations

For a typical employer with more than 25 employees, a standard H-1B petition could be $3,380 broken down as:

Fee

Amount

Applies when?

Form I-129 filing fee

$780

Standard H-1B petition

Asylum Program Fee

$600

Most employers; reduced to $300 for qualifying small employers

ACWIA training fee

$750 or $1,500

Generally applies to initial H-1B and certain extensions/change-of-employer petitions

Fraud Prevention & Detection Fee

$500

Generally initial H-1B or change of employer

No immediate action is required solely because of this proposal. Employers should, however, consider the potential impact if they regularly recruit foreign nationals or anticipate needing H-1B sponsorship. Employers should:

Review upcoming hiring plans for positions that may require H-1B sponsorship and consider the potential additional cost when developing recruiting budgets.
Identify current employees or candidates with pending immigration needs and discuss timing with the company's immigration counsel.
Coordinate with finance and program management before committing to H-1B sponsorship, particularly where labor costs are incorporated into government contract pricing or indirect-cost structures.
Avoid making assumptions about the final fee. The $103,265 amount is currently proposed and may change before a final rule is issued. Legal challenges are also possible.

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