The US Department of Homeland Security (DHS) proposed a $103,265 fee on new, cap-subject H-1B visa petitions on 25 August 2026. The fee would apply through formal rulemaking, unlike the $100,000 fee the Trump administration first imposed by presidential proclamation in September 2025. A federal court vacated that proclamation's implementing guidance in June 2026, prompting this new proposal.
Applies to: All cap-subject petitions, including the 65,000 regular cap and the 20,000 advanced-degree exemption.
Exempted: Petitions filed by higher-education institutions, their affiliated nonprofits, and nonprofit or government research organisations.
Why This Matters for India
Largest affected group: Indian nationals received about 72-73% of all H-1B visas issued in recent years, the largest share of any country.
Cost to Indian IT firms: Indian IT companies that place staff at US client sites on H-1B visas would face a sharply higher per-employee sponsorship cost. This could make them more selective about who they sponsor.
About the H-1B Visa
What it is: The H-1B is a US non-immigrant visa for foreign workers in "specialty occupations" needing at least a bachelor's degree in a specific field.
Cap: It is capped at 65,000 visas a year, plus 20,000 more for applicants with a US master's degree or higher, allocated through an annual lottery.