US Proposes $103,265 H-1B Fee for New Cap-Subject Petitions, Raising Hiring Costs for Employers

The US Department of Homeland Security (DHS) has proposed a new fee of $103,265 for each cap-subject H-1B petition, potentially creating a major additional cost for employers seeking to recruit foreign workers.

The proposed charge would be added to existing H-1B filing and statutory fees. However, petitions that are exempt from the annual H-1B cap would generally not be subject to the new fee.

The United States currently has an annual cap of 85,000 new H-1B visas, including 20,000 visas reserved for applicants with qualifying advanced degrees under the so-called Master's cap.

Certain employers, including higher education institutions, affiliated nonprofit organisations and research organisations, may qualify for cap-exempt H-1B visas.

Who Could Face the Proposed Fee?

A 67-page draft proposal indicates that the new charge would generally not apply to H-1B workers who have already been counted against the annual cap and are seeking to change jobs or extend their stay.

However, the proposal includes an important distinction for workers eligible for a new six-year period of H-1B admission. If a new petition is filed for such a worker and the case is considered cap-subject, the proposed $103,265 fee could potentially apply.

The proposal would therefore have a significant financial impact on companies that rely on the H-1B programme to recruit skilled foreign professionals.

Proposal Still Open for Public Comments

The proposed fee is not yet a final rule. The draft will go through a public-comment process, after which the government would consider feedback before finalising and implementing the measure.

The process is expected to take several months. The proposal could therefore change before any final fee takes effect.

For employers and prospective H-1B workers, the proposed fee is likely to become an important issue as the US considers changes to the immigration system and the costs associated with sponsoring foreign talent.