The US Department of Homeland Security (DHS) has proposed a new $103,265 fee for every cap-subject H-1B petition, including applications eligible for the 20,000-visa advanced-degree exemption. The fee would be paid by employers in addition to existing H-1B charges, but it is not in force yet. DHS has opened a 30-day public-comment period before deciding whether to issue a final rule.
The proposal is expected to generate around $8.8 billion annually, based on an estimated 85,000 cap-subject petitions, with the money distributed across agencies including US Citizenship and Immigration Services (USCIS), the Department of Justice’s immigration courts, the Department of Labor, Immigration and Customs Enforcement, the State Department and Customs and Border Protection.
USCIS spokesperson Zach Kahler said the fee is intended to recover costs incurred across the federal government to “adjudicate, vet, and support lawful immigration programmes” that would otherwise be funded by taxpayers.
The move comes after a federal court struck down the Trump administration’s separate $100,000 H-1B payment, while Vice-President JD Vance has backed the new proposal, saying US companies should prioritise hiring and training American workers.
Immigration advocates, meanwhile, warn that the fee could make it harder for the US to attract skilled workers and could disproportionately affect international graduates and Indian professionals.
Who Will Pay The Fee?
If finalised, the proposed charge would apply specifically to H-1B petitions subject to the annual cap of 65,000 visas, as well as the additional 20,000 places reserved for foreign workers with qualifying US master’s degrees or higher. It would not apply to cap-exempt petitions, including many filed by universities, certain nonprofit research organisations and governmental research institutions.
Importantly, this is an employer-side cost, not a $103,265 bill that would automatically be sent to an H-1B worker or Indian applicant. However, the financial burden could still affect workers indirectly. Employers faced with a six-figure sponsorship cost may become more selective about whom they sponsor, particularly for junior roles or positions where the business can find a domestic candidate.
DHS says the fee is justified because H-1B employers are comparatively well placed to absorb additional costs. The agency’s calculation divides approximately $8.78 billion in estimated costs by 85,000 projected petitions, producing $103,264.57, which is rounded to $103,265.
The proposal also says the money would help fund immigration adjudication, fraud detection, national-security vetting, immigration courts, consular processing and labour enforcement.
For Indian professionals, the implications could be significant because Indian nationals account for a large share of H-1B beneficiaries, while many international students follow a US education-to-OPT-to-H-1B pathway. The proposal does not mean every such worker will personally pay the fee, but it could influence whether an employer is willing to sponsor them.
Why The Proposal Matters Now
The proposed fee comes shortly after the Trump administration’s earlier attempt to impose a $100,000 payment on certain new H-1B petitions suffered a major legal setback. A federal judge in Massachusetts struck down that measure in June 2026, and the First Circuit Court of Appeals later rejected the administration’s request to pause the ruling.
The new DHS proposal takes a different legal route, using statutory fee-setting authority and the formal federal rulemaking process. The agency says the $103,265 charge is designed as a separate fee specifically to recover interagency immigration-system costs. DHS also makes clear that the proposed fee would be added to other applicable payments.
The rule says that if a petitioner were ever subject to both the proposed fee and a separate payment required under a presidential proclamation, both could potentially be payable. The administration argues that higher costs could encourage US companies to invest in domestic talent.
Vance has publicly supported the proposal, arguing that companies should “hire and train Americans”. But critics see a different risk. Immigration attorney Emily Neumann called the proposal another attempt to restrict legal immigration, while FWD.us president Todd Schulte warned that policies of this kind could weaken America’s ability to attract and retain skilled workers globally.
Legal experts have also questioned whether DHS has sufficient authority to use such a large fee to finance activities across multiple federal agencies, meaning the proposal could face another legal challenge if it becomes final.
The Logical Indian’s Perspective
Immigration policy inevitably involves a difficult balance between protecting opportunities for local workers and maintaining a fair, competitive system for people who contribute skills, expertise and innovation to society. The US government has a legitimate interest in ensuring that immigration programmes are properly funded and that employers do not use foreign workers simply to avoid investing in domestic talent.
At the same time, a $103,265 additional charge is substantial enough to change hiring decisions before a worker even gets an opportunity to prove their value. For international students and skilled professionals, particularly those who have studied and built careers in the US, uncertainty around sponsorship can also carry significant personal and financial consequences.
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