The Trump administration has published a proposed rule in the Federal Register that would impose a fee of more than $103,000 on U.S. employers for each new cap-subject H-1B petition they file, according to a press release from the American Immigration Lawyers Association (AILA) dated August 24, 2026. AILA is calling the proposal unlawful, unprecedented, and a direct threat to the employers who rely on H-1B workers to fill critical roles.

Key Points

  • What: A proposed federal rule would require employers to pay over $103,000 per new cap-subject H-1B petition filed.
  • Who: U.S. employers sponsoring new H-1B workers — including tech companies, hospitals, universities, small businesses, and nonprofits.
  • When: No effective date has been specified; this is a proposed rule and is not yet in effect.
  • Impact: If finalized, the fee would make sponsoring a new H-1B worker financially out of reach for many employers, reducing the pool of job offers available to international workers.

What AILA Is Saying

AILA President Jeff Joseph described the proposed fee as an attempt to fund immigration adjudications across multiple federal agencies without explicit congressional authorization — a move he called "executive overreach on steroids." He noted that employers relying on H-1B workers include not just large tech firms, but teachers, rural doctors, researchers, and clergy.

AILA Executive Director Benjamin Johnson warned that the proposal signals a broader closing of U.S. doors to global talent, while competitors like China and Canada are actively recruiting skilled workers. He argued that pushing talent away ultimately costs America jobs and competitive advantage in healthcare, technology, and business.

This Has Happened Before

This proposal is not the administration's first attempt at a large H-1B fee. According to additional context from AP News and AILA's own records, President Trump signed a proclamation in September 2025 that required employers to pay a $100,000 fee before bringing in new H-1B workers from overseas. A federal judge struck that fee down in June 2026, ruling that the administration exceeded its authority by setting the charge without congressional approval.

AILA characterizes this new $103,000 proposed rule as a second attempt to accomplish the same goal through a different legal vehicle — a formal rulemaking published in the Federal Register.

What This Means for H-1B Workers and Prospective Sponsors

If this rule moves forward, the practical consequences for international workers could be severe. Employers that previously sponsored H-1B workers — particularly nonprofits, startups, academic institutions, and rural healthcare providers — may simply stop filing new petitions if the cost exceeds six figures per hire.

For F-1 students counting on OPT-to-H-1B transitions, a shrinking pool of willing sponsors directly narrows the path to long-term work authorization. For current H-1B holders, the rule as described targets new cap-subject petitions, so existing approved workers may not be immediately affected — but that distinction isn't yet fully clear from the proposed rule's details.

It is important to note that this is a proposed rule, not a final one. The Federal Register publication typically opens a public comment period before any rule can take effect.

What You Should Do

  • Employers: Watch for the official comment period deadline in the Federal Register. If you sponsor H-1B workers, submitting comments is one of the most direct ways to push back on proposed rules.
  • H-1B workers: Your current status is not immediately affected, but monitor whether your employer signals changes to future sponsorship plans.
  • F-1 students on OPT: This rule, if finalized, could reduce the number of employers willing to sponsor H-1B petitions — start conversations with your employer now about their intentions.
  • Everyone: Expect legal challenges. The previous $100,000 fee was struck down by a federal court. This proposal will likely face similar scrutiny.