The Department of Homeland Security has proposed a $103,265 fee for all H-1B cap-subject visa petitions, a dramatic escalation of the Trump administration’s efforts to reshape the program that brings highly skilled foreign workers to the United States.
The proposed rule, published in the Federal Register on August 25, would impose the fee at the time of filing on every cap-subject H-1B petition, including those eligible for the advanced degree exemption. It would be charged on top of all existing fees and payments. DHS estimates the fee would generate approximately $8.8 billion in annual revenue from the roughly 85,000 cap-subject filings processed each fiscal year.
The proposal opens a 30-day public comment period before it can be finalized. DHS said the revenue would help recover costs for administering the lawful immigration system, including adjudication of benefits, fraud detection, national security vetting, systems modernization, and immigration court operations.
Second Attempt After Court Setback
The proposal represents the administration’s second attempt to impose a six-figure fee on H-1B applications. In September 2025, President Trump signed an executive order establishing a $100,000 fee, but a federal judge voided the requirement, ruling that the administration had overstepped its authority. The new approach uses formal rulemaking through the Federal Register, a process that carries more legal weight but also invites prolonged legal challenges.
The proposed rule comes alongside other recent changes to the H-1B program. Earlier this year, the administration implemented a wage-weighted lottery system that gives preference to employers offering higher salaries, replacing the previous random selection process. That change took effect in February 2026 and has already shifted the composition of H-1B recipients toward higher-paid positions at larger companies.
Industry groups have warned that the combined effect of the fee and the lottery changes could effectively price smaller companies and startups out of the H-1B system. The proposed rule itself acknowledges that 11,051 small entities, representing 76 percent of the small businesses that filed cap-subject petitions in fiscal year 2025, would face a significant economic impact.
Impact on International Students and Tech Sector
The proposal arrives as international student enrollment in the United States is already declining sharply. New data from the Common App shows that international undergraduate applicants fell 10 percent by March 2026, the steepest decline on record. The Institute of International Education’s Spring 2026 Snapshot estimated another drop in overall enrollment for the upcoming fall semester.
Indian students, who represent the largest source of international students in the U.S. with 363,000 enrolled during the 2024-25 academic year, are expected to be among the most affected. Indian participation in the Optional Practical Training program, which allows graduates to work in the U.S. for up to three years in STEM fields, increased by 47 percent in a single year. A six-figure H-1B fee could make the path from OPT to employer-sponsored work visa financially unviable for many graduates.
Education experts have warned that countries including Canada, the United Kingdom, Germany, and Australia may become more attractive alternatives for international students deterred by the rising cost and uncertainty of U.S. work authorization. Several universities have reported that visa-related issues are already the primary factor affecting international enrollment.
Revenue Projections and Legal Landscape
DHS projects the proposed rule would create annual quantified costs of approximately $8.8 billion over a 10-year analysis period from fiscal year 2027 through fiscal year 2036. The 10-year total is estimated at $74.9 billion discounted at 3 percent, or $61.6 billion discounted at 7 percent, according to an OMB Circular A-4 accounting statement included in the Federal Register filing.
The proposal must still navigate a formal comment period and finalization process. Immigration lawyers have noted that the legal landscape surrounding H-1B fees remains unsettled, with the previous executive order’s defeat in court establishing a precedent that could be cited against the new rule. However, the administration’s decision to use formal rulemaking rather than executive authority may provide stronger footing.
The proposed fee would not apply to cap-exempt petitions, including those filed by institutions of higher education, nonprofit research organizations, or government research entities. It would also not affect H-1B extensions of stay or changes of employer for workers already in the United States on existing H-1B status.
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