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DHS just dropped a bombshell. On August 25, 2026, the Department of Homeland Security published a proposed rule that would slap a $103,265 fee on top of every cap-subject H-1B petition — on top of everything employers already pay. We’re talking about a potential $8.8 billion annual revenue grab that could fundamentally change who gets to hire international talent in this country. Public comments close September 24, 2026. That’s not much time. Whether you’re an employer who sponsors H-1B workers or a foreign national counting on an H-1B to build your career here, you need to understand what this means — and you need to move fast. Our immigration team at Tez Law P.C. is watching this closely and ready to help.
Background: What Is DHS Proposing and Why?
The H-1B program lets U.S. employers sponsor foreign nationals in specialty occupations — tech, engineering, medicine, finance, academia, you name it. Every year, USCIS gets flooded with far more petitions than the 85,000-visa cap allows, so it runs a lottery. Under this new proposed rule, every petition that goes through that lottery would carry an extra $103,265 supplemental fee — stacked on top of every fee that already exists.
Right now, total H-1B filing costs already run anywhere from roughly $4,000 to over $10,000, depending on employer size, wage tier, attorney fees, and whether you’re using premium processing. This proposed fee doesn’t just add to that — it dwarfs it. DHS says the $8.8 billion per year in projected revenue would fund domestic workforce training, STEM education, and USCIS operations. That sounds reasonable on the surface. But here’s the real-world impact: small businesses, nonprofits, and startups — the very employers who often depend most on skilled international talent — simply couldn’t absorb a cost like this. This proposal could price them out entirely.
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Legal experts and immigration advocacy organizations, including the American Immigration Lawyers Association (AILA) and the American Immigration Council, have already signaled that significant legal challenges are widely anticipated if the rule is finalized, citing concerns about statutory authority, administrative procedure compliance, and discriminatory economic impact.
How This Proposed Fee Affects Employers and H-1B Applicants
The impact of this proposed rule would be felt across virtually every sector of the U.S. economy that relies on high-skilled international talent. Here is who stands to be most affected:
- U.S. Employers of All Sizes: Large tech companies may be able to absorb the $103,265 cost, but small businesses, regional hospitals, engineering firms, and academic institutions could find it economically impossible to sponsor H-1B workers. Many may be forced to offshore positions, reduce hiring, or abandon expansion plans.
- Foreign Nationals in the H-1B Lottery: Candidates who win the lottery but whose employers cannot afford the new fee face an uncertain future — potentially losing their legal status pathway or being forced to explore alternative visa categories.
- Startups and Tech Companies: Venture-backed startups frequently rely on international engineers and developers during early growth stages. A six-figure fee per petition could stall innovation and force talent abroad.
- Healthcare and Academic Institutions: Hospitals, research universities, and nonprofits that operate on tighter margins are particularly vulnerable. While some nonprofit and government research organization petitions may be cap-exempt, many are not.
- H-1B Extensions and Transfers: It is critical to note that the proposed $103,265 fee applies specifically to cap-subject petitions. Extensions of stay and employer transfers for workers already counted against the cap would not be subject to this additional fee under the current proposal — but employers should confirm their specific situation with qualified immigration counsel.
The downstream economic consequences extend beyond immigration. Industries that rely on H-1B talent to drive research, development, and innovation could face talent shortages, wage inflation, and reduced global competitiveness at a time when international competition for skilled workers is already fierce.
What You Should Do Right Now — Before September 24, 2026
The public comment deadline of September 24, 2026 is not just a formality. Substantive, well-documented comments submitted through the official rulemaking process can influence how DHS finalizes — or abandons — this proposal. Employers, trade associations, and individuals all have standing to comment. Here are the most important steps to take immediately:
- Submit a Public Comment: Visit regulations.gov and search for the DHS H-1B supplemental fee NPRM. Your comment should be specific, factual, and explain the real-world impact this fee would have on your business or career. Generic comments carry less weight. AILA has published guidance on drafting effective comments that we strongly encourage you to review.
- Consult an Immigration Attorney Now: If you are planning to file H-1B petitions in the next lottery cycle, begin strategizing immediately. Understand your options, including potential cap-exempt pathways, O-1 visas, TN visas, E-3 visas for Australian nationals, or other alternatives that may serve your needs.
- Audit Your Current H-1B Workforce: Employers should review all current H-1B employees and upcoming petition needs. Identify who is approaching cap-subject status and plan accordingly before any final rule takes effect.
- Monitor Legal Challenges: If the rule is finalized, litigation is widely expected. Courts may issue injunctions that delay implementation. Having experienced immigration counsel in your corner means you will be positioned to act quickly when the legal landscape shifts.
- Explore Alternative Visa Categories: Depending on the nature of the position and the candidate’s background, alternatives like O-1A (extraordinary ability), EB-1, L-1, or E-2 visas may be viable. An experienced immigration attorney can assess your options comprehensively.
Why Choose Tez Law P.C. for Your Immigration Needs
At Tez Law P.C., Managing Attorney JJ Zhang (California Bar #326666) leads a dedicated immigration practice that serves clients across the entire United States. We understand that immigration law is not static — it evolves with every rulemaking, court decision, and policy shift. When DHS proposes rules with consequences as significant as this one, you need counsel that is not just reactive, but strategically proactive.
Our team helps employers of all sizes navigate H-1B filings, compliance, audits, and workforce planning. We work with foreign nationals at every stage of the immigration process, from initial visa petitions to green card applications and naturalization. We also represent clients in removal proceedings and complex immigration matters nationwide. Whether you are a startup founder trying to retain a critical engineer or a multinational corporation managing a global workforce, our immigration services are built around your specific needs and goals. Schedule your free consultation today and let us help you build a strategy that works no matter what DHS finalizes.
Frequently Asked Questions
Does the proposed $103,265 fee apply to all H-1B petitions?
No. Under the current NPRM, the proposed $103,265 supplemental fee would apply only to cap-subject H-1B petitions — those that go through the annual lottery. H-1B extensions of status, amendments, and employer transfers for workers who have already been counted against the cap would not be subject to this additional fee. Cap-exempt employers, such as certain universities, nonprofit research organizations, and government research entities, would also not be subject to the cap-subject fee. However, you should consult with a qualified immigration attorney to confirm how the rule applies to your specific situation, especially since the final rule — if published — could differ from the current proposal.
What happens if the rule is finalized before I can file my H-1B petition?
If the rule is finalized and takes effect before the next H-1B filing season, employers would be required to include the $103,265 fee with all cap-subject petitions. Failure to pay the fee would result in rejection. However, legal challenges to the rule are widely anticipated and could result in a court-issued preliminary injunction that delays or suspends implementation. This is exactly why working with experienced immigration counsel now is so important — you need to be ready to act quickly under any scenario. Our team at Tez Law P.C. is actively tracking this rulemaking and will alert our clients to any developments. Contact us for a free consultation.
Can I file a public comment even if I am not a lawyer or a large company?
Absolutely. The public comment process is open to any individual, business, organization, or advocacy group. Individual H-1B workers, prospective applicants, small business owners, and concerned community members all have the right to submit comments, and those comments carry real weight — especially when they are specific and factual. You do not need an attorney to submit a comment, though immigration counsel can help you craft a comment that is legally substantive and maximally effective. Comments must be submitted through regulations.gov by September 24, 2026. Do not wait — this deadline is firm.
The proposed $103,265 H-1B fee is one of the most consequential immigration policy developments in years, and the September 24, 2026 comment deadline means the time to act is right now. Whether you need to submit a public comment, plan your next H-1B petition, explore alternative visa options, or simply understand how this rule affects your business or immigration journey, Tez Law P.C. is here to help. Our experienced immigration attorneys serve clients nationwide with the personalized, strategic counsel this moment demands. Contact us today for a free consultation and let us protect your interests before this rule changes everything.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Contact Tez Law P.C. at 626-678-8677 or [email protected] for advice specific to your situation. Results may vary.