The higher costs of sponsoring an H-1B worker may dent hiring and could also impact the dreams of those aspiring to work in the USThe Trump administration has proposed a new $103,265 fee for cap-subject H-1B petitions, as the earlier $100,000 payment imposed through a presidential proclamation in Sept 2025 has run into legal challenges and is set to expire next month (unless extended). The new proposal, however, is based on a different legal authority and would create a separate fee regime for cap-subject H-1B petitions.

The draft proposal will be open for public comments and will take a few months for finalisation and implementation. The US Department of Homel and Security (DHS) has proposed this new fee for every cap-subject H-1B application (termed as petition under US immigration laws) – this move will significantly raise the cost for employers seeking to hire foreign workers.

It would be in addition to all existing H-1B filing and statutory fees. However, H-1B petitions that are exempt from the annual cap would not be subject to the new charge.

There is an annual quota (cap) of 85,000 H-1B new visas that are allotted each year. This includes the 20,000 cap for those with advanced degrees, known as the Master’s cap.

In addition, there is a cap-exempt H-1B category. Higher education institutions and related affiliated nonprofits and research organisations are among those eligible to hire cap-exempt H-1B workers.

A footnote in the 67-page draft proposal indicates that the proposed fee would also not generally apply to petitions for H-1B workers who have already been counted against the annual cap and are seeking to change jobs or extend their stay. But there is a finer point – the cap exemption does not cover a worker who is eligible for a fresh six-year period of H-1B admission when the new petition (application) is filed.

New York-based immigration attorney, Cyrus D Mehta, told TOI that: “The $103,265 fee for each cap subject H-1B is preposterous. It will also apply to F-1 students who will change status to H-1B in the US.

This ropes heralds the death of the H-1B program. The Trump administration has killed the goose that laid the golden eggs.

The ability to attract bright and hardworking skilled workers to work for US employers and grow the economy was America's secret sauce.” The proposed $103,265 charge is separate from the $100,000 H-1B payment introduced under a presidential proclamation announced in Sept 2025 – which applied to hiring H-1B workers from outside the US.