The Trump administration has proposed a new $103,265 fee on cap-subject H-1B petitions — its second attempt to dramatically raise the cost of hiring skilled foreign workers after a federal judge struck down an earlier $100,000 version. The New York Times and Reuters both reported the proposal on August 24, 2026, the same day it appeared as a proposed rule in the Federal Register.

Key Points

  • What: USCIS proposed a new $103,265 fee on cap-subject H-1B petitions, including advanced degree exemption (master's cap) cases
  • Who: U.S. employers sponsoring new H-1B workers; H-1B hopefuls in the annual lottery
  • When: Comments due 30 days after Federal Register publication (August 25, 2026); no finalization date announced
  • Impact: If finalized, the fee would make each new H-1B sponsorship dramatically more expensive, potentially deterring smaller employers from filing

Round Two After a Court Rejection

The administration's first attempt imposed a $100,000 fee through executive action. A federal judge struck it down in June 2026, ruling — according to AP News reporting — that the administration had exceeded its authority by raising the fee without congressional approval. The government said it would appeal that decision.

This new proposal takes a different approach: it goes through the formal notice-and-comment rulemaking process, publishing in the Federal Register and inviting public input. That procedural step is likely an attempt to put the fee on firmer legal ground than its predecessor.

According to the AILA (American Immigration Lawyers Association), the proposed rule would apply the $103,265 fee to all cap-subject H-1B petitions — including those filed under the advanced degree exemption — and the stated purpose is to help fund immigration system costs across multiple federal agencies.

What Critics Are Saying

AILA's president called the proposal "astronomical" and warned it would undermine U.S. innovation by making it harder for American employers to hire skilled foreign professionals. Many tech companies and universities rely on the H-1B program to fill specialized roles, and critics of the fee argue that a six-figure surcharge would hit mid-sized and smaller employers hardest, since large outsourcing firms may absorb the cost more easily.

Opponents also view this rule as a strategic workaround — an effort to reinstall the same fee through regulatory channels after the courts blocked the first version.

What's Still Unclear

The article text available from The New York Times was partially truncated, so it's not yet clear whether the proposed rule specifies who must pay the fee — the employer, the worker, or both — or whether any exemptions apply. Those details matter enormously for workers currently in the H-1B pipeline.

What You Should Do

If you're an employer or HR team: This is a proposed rule, not a final one. No action is required yet, but you should monitor the Federal Register closely. Comments are due 30 days after August 25, 2026 — meaning roughly late September 2026. If your organization is affected, submitting a public comment is one concrete way to put your concerns on record.

If you're an H-1B worker or candidate: Nothing changes immediately. But if this rule is finalized, your employer's willingness to sponsor you may depend on whether they can absorb a $103,265 surcharge. Start having honest conversations with your employer now about their H-1B sponsorship budget and long-term plans.

Watch for: The outcome of the government's appeal of the June court ruling, and whether the formal rulemaking process survives its own legal challenges.