The Trump administration is pushing forward with a plan to impose a $103,265 fee on new cap-subject H-1B visa petitions, despite a federal court ruling that previously struck down a similar charge. Reuters reported on August 24, 2026 that the administration published a proposed rule in the Federal Register to formally codify the fee — and that it is simultaneously appealing the court decision that blocked an earlier version of it.

Key Points

  • What: A proposed rule that would set a new $103,265 fee on cap-subject H-1B petitions, including advanced degree exemption cases
  • Who: U.S. employers sponsoring new H-1B workers subject to the annual cap — including tech companies, universities, and other skilled-worker employers
  • When: Comments are due 30 days after the rule's Federal Register publication on August 25, 2026; no final effective date has been set
  • Impact: If finalized, the fee would dramatically raise the cost of hiring foreign skilled workers through the H-1B program

What's Being Proposed

According to Reuters, the Trump administration released a proposed regulation on August 24, 2026 to establish a $103,265 fee for new cap-subject H-1B petitions. The American Immigration Lawyers Association (AILA) confirmed the Federal Register notice and identified the rule under USCIS docket number USCIS-2026-0298.

This is a proposed rule — not a final rule. That means it still needs to go through a public comment period before it can take effect. Comments are due 30 days after the August 25, 2026 Federal Register publication date.

The Legal Backstory

This isn't the first time the Trump administration has tried to impose a six-figure H-1B fee. Reuters reported that a similar fee was previously imposed by executive action, but a federal judge struck it down in June 2026, ruling — at the lawsuit of 20 states — that the administration exceeded its authority by raising the fee without congressional approval.

The administration is appealing that ruling while simultaneously pursuing this proposed rulemaking. By going through the formal notice-and-comment regulatory process, the administration may be attempting to address the legal vulnerability that led to the earlier fee being struck down.

What This Means for H-1B Workers and Employers

If finalized, this fee would apply to cap-subject petitions — meaning new H-1B filings that go through the annual lottery, including advanced degree (master's cap) exemption cases. It would not be paid by the worker directly, but employers are typically the ones required to pay H-1B filing fees.

For workers, the real risk is indirect: a $103,000+ cost per hire could cause employers — especially smaller companies and universities — to reconsider H-1B sponsorship entirely. AILA has already come out against the proposal, arguing it would undermine U.S. innovation and harm employers who rely on skilled foreign professionals to fill workforce gaps.

It's not yet clear from Reuters' reporting whether extensions or transfers would be covered, or exactly how fee revenues would be allocated — though AILA noted the proposal ties the fee to funding immigration system costs across multiple federal agencies.

What You Should Do

If you're an H-1B worker or prospective applicant: No immediate action is required on your part. This is still a proposed rule, and it faces an active legal challenge. Monitor developments closely — the outcome of the administration's appeal and the public comment period will both shape what happens next.

If you're an employer or HR professional: Talk to your immigration attorney now. Even before finalization, this proposal signals the direction of policy. Factor potential fee increases into future hiring plans and consider submitting comments during the 30-day public comment window if you want your perspective on the record.

If you want to comment on the proposed rule: Comments must be submitted within 30 days of August 25, 2026. Your immigration attorney can help you navigate the process.