DHS plan targets H-1B cap with $103k fee

The U.S. Department of Homeland Security has proposed imposing a $103,265 fee on every H-1B petition that is subject to the annual numerical cap, including petitions that qualify for the advanced-degree exemption. The proposed amount would be due when an employer files a cap-subject petition and would apply in addition to all existing H-1B-related fees and payments. This represents a substantial potential increase in the upfront cost of sponsoring high-skilled foreign workers under the H-1B program.

DHS estimates that the new fee could generate about $8.8 billion in revenue each year, based on an assumed cap of 85,000 H-1B petitions. The scale of the projected revenue underscores how significant the additional cost would be at the level of individual employers and across the broader market for skilled temporary work visas.

The proposed rule was posted in the Federal Register on August 24–25, 2026. Its publication initiates a 30-day public comment period during which companies, industry bodies, and other stakeholders can submit feedback on the planned fee structure. No final regulation has yet been issued, and the proposal remains subject to change as part of the rulemaking process.

Only after the comment period and subsequent regulatory review could DHS move to finalize and implement the new fee. Until a final rule is published, the $103,265 charge is not in force, and existing H-1B fee rules continue to apply.

Media and market analysis indicate that the proposed fee would materially raise the cost of sponsoring H-1B workers for roles subject to the annual cap. The significantly higher upfront expense could prompt companies to reassess whether to sponsor overseas candidates for U.S. roles when visa costs are factored into staffing plans. Larger organizations may have more capacity to absorb higher fees, while smaller firms could be more exposed to the added financial burden.

Reports suggest that employers might respond by adjusting their delivery and hiring models. Potential strategies include shifting more work to offshore centers where possible, expanding local U.S. hiring for on-site positions, or prioritizing roles that do not rely on cap-subject H-1B visas. These adjustments would aim to manage higher visa-related costs while maintaining service levels to clients.

India’s industry association Nasscom has expressed alarm over the proposed $103,265 fee, highlighting concerns about its impact on access to temporary skilled talent. The group notes that Indian technology firms have already reduced their dependence on H-1B hiring in recent years, reflecting broader shifts in operating models and workforce strategies. Nasscom also points out that the sector has invested more than $1.1 billion to strengthen the STEM talent pipeline in the United States.

Market coverage indicates that the proposed fee could pressure profit margins at technology and services firms that continue to rely on H-1B workers for U.S. projects. While larger Indian IT providers may be better positioned to handle higher costs, smaller providers could face more acute challenges. The evolving regulatory environment around H-1B visas is therefore a key factor in planning future hiring, location, and delivery strategies for Indian and global technology companies.