The Trump administration is proposing a new $103,265 fee for cap-subject H-1B petitions, a change that could dramatically increase the cost for U.S. employers sponsoring international students and other foreign professionals for their first cap-subject H-1B.
The Department of Homeland Security (DHS) published the proposal in the Federal Register on August 25, 2026. The fee would be paid by the petitioning employer at the time of filing and would come on top of other applicable H-1B filing fees.
Most importantly, this is a proposed rule—not a final or currently effective fee. Public comments are due by September 24, 2026, and DHS would have to complete the rulemaking process before implementing a final version.
For international students hoping to move from F-1 status and OPT or STEM OPT to H-1B status, the proposal is especially significant because it targets cap-subject H-1B petitions, including cases involving beneficiaries already living and working in the United States.
What Is the New $103,265 H-1B Fee Proposal?
Under the DHS proposal, employers would pay an additional $103,265 when filing an H-1B cap-subject petition, including petitions for beneficiaries eligible for the U.S. advanced-degree exemption, commonly called the master's cap.
The annual H-1B cap generally consists of:
- 65,000 H-1B numbers under the regular cap; and
- an additional 20,000 for qualifying beneficiaries with a master's degree or higher from a U.S. institution.
DHS estimates that applying the proposed fee to 85,000 cap-subject petitions would generate approximately $8.8 billion per year. The agency says the revenue would help cover immigration-system costs across USCIS and other federal agencies, including immigration adjudication, fraud detection and national-security vetting, immigration courts, consular processing and labor enforcement.
The proposed fee would be uniform across cap-subject petitioners and would be charged in addition to existing filing and statutory fees.
Why This Proposal Is Different From the Previous $100,000 H-1B Fee
This is not the administration's first attempt to impose a six-figure H-1B cost.
In September 2025, President Trump issued a proclamation restricting the entry of certain H-1B workers unless their petitions were accompanied by a $100,000 payment. That policy primarily focused on H-1B workers entering the United States from abroad.
A federal court later struck down that fee, concluding that the administration lacked authority to impose it in that form. The administration has appealed the ruling.
The new proposal takes a different approach: DHS is attempting to establish the fee through the federal regulatory process.
It is also broader in an important way. Bloomberg reported that the earlier entry-based fee did not generally reach recent U.S. graduates and others already in the country changing to H-1B status. The new proposal applies to cap-subject H-1B petitions, meaning an employer sponsoring an eligible F-1 student already in the United States could also face the additional fee if the rule is finalized as proposed.
What the H-1B Fee Could Mean for F-1, OPT and STEM OPT Students
For many international graduates, the practical concern is not paying $103,265 themselves. The proposed fee is imposed on the H-1B petitioner—typically the employer.
The larger issue is whether employers would still be willing to sponsor cap-subject H-1B petitions at that cost.
An F-1 student working through OPT or STEM OPT may eventually depend on an employer filing a cap-subject H-1B petition to continue employment in H-1B status. If the proposal becomes final in its current form, that employer could face an additional six-figure government fee for the petition.
DHS itself acknowledges that the proposal may cause some employers, including small entities, to file fewer H-1B petitions. The agency nevertheless argues that the fee could discourage employers from choosing H-1B workers over qualified U.S. workers unless the employer has a legitimate need for the foreign worker's specialized skills.
For students planning an F-1-to-H-1B transition, employer sponsorship policies and willingness to absorb immigration costs could therefore become an even more important part of evaluating job opportunities if the rule is finalized.
The proposal does not itself change CPT, OPT or STEM OPT employment authorization rules. Its direct impact is on cap-subject H-1B petitions.
Would Universities and Other Cap-Exempt H-1B Employers Pay the Fee?
Not all H-1B petitions would be affected.
DHS specifically states that the proposed $103,265 fee would not apply to H-1B petitions that are exempt from the annual cap.
Cap-exempt H-1B employment can include qualifying employment with institutions of higher education, affiliated nonprofit entities, nonprofit research organizations and governmental research organizations.
That distinction could become increasingly important for international graduates comparing career paths. A private-sector employer filing a cap-subject H-1B petition could potentially face the new fee, while a qualifying university or research employer filing a cap-exempt petition would not be subject to this particular proposed charge.
However, students should not assume that any nonprofit employer automatically qualifies as H-1B cap-exempt. Cap-exempt status depends on the employer and petition meeting the applicable legal requirements.
The $103,265 H-1B Fee Is Not Final Yet
For now, employers and international students should treat the six-figure H-1B fee as a proposal, not a current requirement under this rule.
The Federal Register notice is a Notice of Proposed Rulemaking, and DHS is accepting public comments through September 24, 2026.
After reviewing comments, DHS could modify the proposal, issue a final rule, or take other action. The final fee and implementation details therefore cannot be assumed until the rulemaking process is completed.
For F-1 students on OPT or STEM OPT, the development is worth watching closely because the proposal directly targets the cap-subject H-1B pathway that many international graduates use to transition from student employment authorization to longer-term professional employment in the United States.
Sources:
- "Federal Register — Fee for Certain H-1B Petitions, Notice of Proposed Rulemaking" (https://reference-url-citation.invalid/13)
- "USCIS — DHS Proposes Additional H-1B Fee" (https://reference-url-citation.invalid/14)
- "U.S. Department of Justice — Federal Register Notices 2026" (https://reference-url-citation.invalid/15)
- "Federal Register — 2025 Restriction on Entry of Certain Nonimmigrant Workers" (https://reference-url-citation.invalid/16)
- "Bloomberg — Trump Devises New $100,000 H-1B Visa Fee After Court Defeat" (https://reference-url-citation.invalid/17)