The Trump administration proposed extending its $100,000 plus H-1B fee to workers already in the country. Previously, this fee had only applied to prospective H-1B applicants from outside of the United States. Additionally, the new rule makes the fee permanent rather than limiting it to a temporary policy enacted by presidential proclamation, as last year’s version did.
Published in the Federal Register on August 25, 2026, the rule will now go through a comment period of 30 days before the Department of Homeland Security (DHS) decides whether or not to finalize it. So employers shouldn’t plan around the change just yet. Still, considering how massive of a shift this would represent if it went through, it’s good to know what the administration is currently proposing.
Background
The administration first implemented a $100,000 H-1B fee last September. It applied only to new applicants. A federal judge later struck it down, ruling that the administration had imposed an unlawful tax without authorization from Congress. Reuters reports that employers rarely used the fee even before the ruling: As of February 16 of this year, about 70 employers had paid the fee to cover 85 visa applications.
Now, the proposed fee would be $103,265. It would also apply to any H-1B petition subjected to the annual quota, including those petitions filed under the master’s cap exemption.
What We Know About the Proposed Fee
If allowed to go into effect, the rule would generate about $8.8 billion per year. DHS plans to allocate those funds towards operating the immigration system at large, not simply processing H-1B petitions. U.S. Citizenship and Immigration Services (USCIS) and the Executive Office for Immigration Review (EOIR) would receive the majority of the funds, about two-thirds of the total. EOIR would receive just over one third of the funds on its own.
This does not apply to employers who qualify for the cap exemption. Universities, their affiliated nonprofits, and nonprofit or government research organizations would remain outside the fee’s reach, the same treatment DHS gives them under the existing H-1B cap rules.
It’s unclear if this will survive both the public comment period and inevitable lawsuits if the policy is passed. Last year’s iteration of the $100K fee didn’t even make it a few months before being blocked by the courts, and the same organizations that sued last year have said they’re keeping a close eye on this one.
As always, ILBSG actively monitors ongoing U.S. immigration news. If you have questions about any U.S. immigration related issue, contact us. Working with an experienced attorney ensures you get the right advice based on the most recent laws. In an ever-evolving immigration policy landscape, it’s particularly critical you get the right advice.