On August 25, 2026, the Department of Homeland Security (DHS) published a proposed rule that would create a new $103,265 filing fee for H-1B cap-subject petitions, including petitions filed under the master's cap exemption. The fee would be in addition to all existing H-1B filing fees.

Importantly, this is only a proposed rule and is not currently in effect. DHS will accept public comments through September 24, 2026, before deciding whether to move forward with a final rule.

Who Would Be Affected?

The proposed fee would apply only to cap-subject H-1B petitions, including regular cap and master's cap filings and for H-1B beneficiaries both inside and outside the US. DHS states that the fee would be imposed at the time of filing and would be payable in addition to all other required fees.

The proposal generally would not affect:

• Cap-exempt H-1B petitions;
• H-1B extensions;
• H-1B amendments; or
• H-1B transfers for workers who have already been counted against the H-1B cap.

What Happens Next?

At this stage, there are no immediate changes for employers. However, if finalized, the rule could significantly increase the cost of hiring foreign workers through the annual H-1B cap process starting with the March 2027 H-1B cap registration season.

We anticipate significant legal challenges if DHS moves forward with implementing the fee, particularly given the ongoing litigation that blocked implementation of the $100,000 H-1B fee.

MU will continue to monitor developments and provide updates as additional information becomes available.