The Department of Homeland Security (DHS) has issued a proposed rule that would impose a new $103,265 fee on every cap-subject H-1B petition, including petitions filed under the U.S. advanced degree exemption. The fee would be in addition to all other applicable H-1B filing fees and would be payable by the employer at the time the H-1B petition is filed.

If finalized, the fee would dramatically increase the cost to U.S. employers seeking new cap-subject H-1B workers. DHS states that the fee is intended to recover approximately $8.8 billion annually in costs associated with administering the broader U.S. immigration system. The proposed rule would apply the same fee regardless of an employer’s size or nonprofit status. DHS acknowledges that the proposal could reduce H-1B filings.

The proposed rule is subject to a 30-day public comment period following publication. Employers should be aware that the proposal may change before any final rule is issued.

The immigration attorneys at Ryan Swanson Law will continue to monitor the proposed rule and provide updates regarding its scope, implementation, and potential impact on H-1B employers.

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