TechNet Urges DHS to Withdraw Proposed $103,265 H-1B Fee

TechNet, an association representing technology companies, urged the Trump administration on September 24, 2026, to withdraw its proposed $103,265 H-1B petition fee. The industry pushback centers on concerns that the charge would make recruiting specialized workers more difficult and weaken U.S. competitiveness.

For international students, the debate matters because the proposal would reach employers sponsoring U.S.-educated graduates—not just workers recruited overseas. The $103,265 surcharge remains a proposal, not an effective fee. Its potential impact depends on whether DHS finalizes the rule and what requirements ultimately take effect.

Why TechNet Wants the H-1B Fee Withdrawn

TechNet argues that an employer’s ability to pay a skilled worker’s salary over time does not necessarily mean it can afford an additional six-figure payment before a petition is decided. Its comment letter warns that startups and smaller businesses could delay projects, reduce other hiring, or abandon sponsorship because of the upfront expense.

The group also warns that higher sponsorship costs could push research and investment abroad. Beyond the economic concerns, TechNet questions DHS’s legal authority and justification for requiring one category of employers to finance immigration activities across multiple federal agencies.

Those are arguments against the proposal, rather than established outcomes of a final rule.

DHS presents the fee as a cost-recovery measure. USCIS says it would help fund immigration processing, fraud detection, security vetting, technology improvements, immigration courts, consular operations, and labor enforcement. The agency projects approximately $8.8 billion in annual revenue, assuming 85,000 fee-paying petitions.

Who Would Pay the Proposed $103,265 H-1B Fee?

Under the proposal, employers would pay the additional charge when filing an H-1B petition subject to the annual numerical limit, commonly called the cap.

It would cover both:

• The regular 65,000 H-1B allocation
• The additional 20,000 places available to qualifying U.S. advanced-degree graduates

Other applicable H-1B filing fees would remain separate.

Cap-exempt petitions would not face this proposed surcharge. USCIS identifies qualifying petitions from institutions of higher education, nonprofit research organizations, and governmental research organizations among those outside its scope.

The key distinction is the petition’s cap treatment—not simply whether an employer describes itself as a nonprofit.

The proposal is also separate from the earlier $100,000 presidential-proclamation payment. It is not simply a $3,265 increase or an automatic replacement.

DHS’s draft states that both amounts would be payable when a petition is legally subject to both requirements. That does not mean every H-1B case would automatically face a combined charge.

Why OPT-to-H-1B Transitions Are a Central Concern

Graduates working through Optional Practical Training (OPT), including STEM OPT, should not assume that being inside the United States would exclude their employer’s petition from the proposed fee.

As written, the proposal covers cap-subject petitions requesting an in-country change of status as well as petitions involving consular processing.

A qualifying U.S. master’s degree may make a beneficiary eligible for the advanced-degree allocation, but it would not by itself create an exemption from the proposed fee.

DHS describes the payment as an obligation of the petitioning employer, not the student or worker.

For international graduates, the main concern is therefore access to sponsorship. TechNet argues that the expense could encourage some employers to reserve H-1B sponsorship for more senior positions rather than sponsor early-career workers.

Although withdrawal remains TechNet’s preferred outcome, its comment letter also requests alternatives if DHS proceeds with the rule.

Those requests include:

• Exemptions for qualifying U.S. master’s and doctoral graduates
• Relief for smaller employers
• Protections for employers with existing recruiting commitments

These are requested protections, not exemptions DHS has adopted.

What Happens After the Comment Deadline?

DHS published the proposed rule on August 25, 2026, and set September 24, 2026, as the public-comment deadline.

That deadline was not an effective date for collecting the surcharge.

The agency must review relevant public comments before determining whether and how to proceed. If DHS issues a final rule, that rule would establish the actual requirements, exemptions, and effective date.

For F-1 students and OPT workers planning a future H-1B transition, the most important point is that the $103,265 fee is still proposed.

Students discussing sponsorship with an employer should determine whether their anticipated petition would be cap-subject and monitor whether DHS changes the proposal before issuing any final rule.

Neither the proposed charge nor TechNet’s requested exemptions should currently be treated as settled H-1B requirements.

Sources:

• • The Wall Street Journal — Tech Industry Calls on Trump Administration to Withdraw New H-1B Visa Fee
  • TechNet — Statement Urging Withdrawal of the Proposed H-1B Fee
  • TechNet — September 24, 2026 Comment Letter on the H-1B Fee Proposal
  • USCIS — DHS Proposes Additional H-1B Fee
  • Federal Register — Fee for Certain H-1B Petitions: Proposed Rule