Two $100,000+ H-1B Costs Could Reshape Employer Sponsorship Strategies

U.S. employers that rely on H-1B talent may soon face an unprecedented financial reality. Two separate federal measures, each carrying a price tag of roughly $100,000, could dramatically increase the cost of sponsoring foreign professionals. While one measure stems from a presidential proclamation affecting certain workers entering the United States, the other is a proposed Department of Homeland Security (DHS) regulation that would impose a six-figure filing fee on cap-subject H-1B petitions.

Although both initiatives target H-1B employment, they operate independently and could, in some situations, apply to the same case.

The Return of the $100,000 Entry Payment

The Trump Administration recently extended a previously announced $100,000 payment requirement tied to certain H-1B workers seeking admission to the United States. The payment was first introduced in 2025 and was scheduled to expire in September 2026. Under the new proclamation, the measure remains in effect through September 21, 2027, unless extended again.

Unlike a traditional filing fee, this payment is linked to the process of entering the United States to begin H-1B employment. The revised proclamation emphasizes that the requirement applies in situations where admission to the country is necessary for petition approval or activation of H-1B status. This can include cases involving consular processing, port-of-entry notification, preclearance, or similar admission procedures.

The Department of Homeland Security retains authority to grant national-interest exceptions. These exemptions may be issued on a case-by-case basis or, potentially, for entire employers or industries deemed critical to the national interest.

Legal Challenges Leave Significant Uncertainty

Despite the extension, the payment requirement has never actually been collected.

In June 2026, a federal court in Massachusetts invalidated agency actions implementing the original proclamation. The government sought to pause that ruling while pursuing an appeal, but the U.S. Court of Appeals for the First Circuit declined to grant the request.

As a result, U.S. Citizenship and Immigration Services (USCIS) has indicated that it is complying with the court’s order while continuing to pursue appellate review. The agency has also suggested that it may seek payment if the underlying court order is ultimately reversed.

The latest proclamation does not specifically address how the ongoing litigation affects enforcement of the renewed payment requirement. Consequently, employers should avoid making assumptions about whether the payment process has resumed or whether the legal challenge has been resolved.

For organizations planning H-1B filings involving consular processing or foreign-based employees, individualized legal analysis remains essential.

DHS Proposes a Separate $103,265 H-1B Filing Fee

In a separate development, DHS has proposed a new filing fee of $103,265 for all cap-subject H-1B petitions. The proposal is being advanced through the traditional notice-and-comment rulemaking process and relies on entirely different legal authority than the presidential proclamation.

If finalized, the fee would apply whenever an employer files an H-1B petition subject to the annual cap, including petitions filed under the advanced-degree exemption for U.S. master’s degree holders.

Importantly, the proposed fee is not connected to a worker’s location or travel plans. Whether the foreign national is already inside the United States seeking a change of status or living abroad awaiting consular processing, the surcharge would apply equally if the petition is cap-subject.

The proposal would also affect employers regardless of size. Small businesses, startups, and nonprofit organizations that file cap-subject petitions would face the same six-figure fee as large multinational corporations.

How Much More Expensive Would H-1B Sponsorship Become?

Current government filing costs for most cap-subject H-1B petitions generally range from approximately $2,200 to $3,600, depending on company size, before any premium processing fees are added.

Under the DHS proposal, employers would pay the new $103,265 fee in addition to all existing filing fees. Premium processing, currently available for an additional fee, would remain optional but would further increase overall costs. Employers subject to other H-1B-related surcharges could face even higher total expenses.

The result would be a dramatic shift in the economics of H-1B sponsorship. For many employers, particularly startups and emerging businesses, the proposed fee could significantly reduce participation in the annual H-1B lottery process.

Who Would Be Exempt?

One notable aspect of the proposal is that it targets only cap-subject filings.

Cap-exempt employers, including many universities, affiliated nonprofit organizations, nonprofit research institutions, and government research entities, would not be subject to the $103,265 fee. Likewise, extensions, amendments, and employer transfers involving workers who have already been counted against the H-1B cap generally would remain exempt from the proposed surcharge.

As a result, the proposal would have a disproportionate impact on first-time H-1B sponsorships rather than ongoing employment relationships.

Why Is DHS Seeking Such a Large Fee?

According to DHS, the proposed amount is based on a cost-recovery model. The agency estimated approximately $8.78 billion in annual government expenditures that it believes should be recovered through cap-subject H-1B filings. DHS then divided those projected costs by an estimated 85,000 annual fee-paying petitions, producing a calculated fee of roughly $103,265 per filing.

The public comment period on the proposed rule has now closed, and DHS will review stakeholder feedback before determining whether to issue a final regulation.

Could Both Measures Apply to One Petition?

Yes.

A cap-subject H-1B petition for a worker located outside the United States could potentially trigger both requirements. The employer could face the proposed $103,265 filing fee because the petition is cap-subject and the additional $100,000 payment because the employee must seek admission to the United States to begin H-1B employment.

Conversely, a cap-exempt petition involving a worker abroad might only be subject to the $100,000 entry-related payment. Meanwhile, a cap-subject change-of-status filing for an employee already in the United States could be subject to the proposed DHS fee without triggering the separate entry-based payment.

In the most expensive scenario, employers could face more than $200,000 in combined government charges before accounting for existing filing fees and legal expenses.

What Employers Should Do Next

Given the rapidly evolving regulatory and litigation landscape, employers should immediately review their H-1B sponsorship pipeline and assess potential exposure under both measures.

Organizations should identify any H-1B petitions filed after the First Circuit decision, preserve all filing records and agency correspondence, and evaluate any pending requests for national-interest exceptions. Employers should also analyze each case individually, focusing on the worker’s location, cap status, travel plans, and anticipated immigration strategy.

While the ultimate fate of both measures remains uncertain, one thing is clear: if implemented as proposed, these new costs could fundamentally alter how employers recruit and retain foreign professional talent through the H-1B program.