U.S. Chamber Urges DHS to Scrap Proposed $103,265 Fee on H-1B Cap Petitions

The U.S. Chamber of Commerce has formally urged the Department of Homeland Security to withdraw a proposal that would charge employers $103,265 for every cap-subject H-1B petition, marking a high-profile business response as the public comment period closed.

The proposal, published by DHS and U.S. Citizenship and Immigration Services in the Federal Register on Aug. 25, 2026, is not now in effect. It would apply only to H-1B petitions subject to the annual cap, including those filed under the advanced-degree exemption, and would not apply to cap-exempt petitions such as many filed by universities and research institutions. In its summary, DHS said it “proposes to establish a $103,265 fee, payable at the time of filing, for all H-1B cap-subject petitions, including those eligible for the advanced-degree exemption,” and the fee “would be imposed in addition to all other applicable fees or payments.”

Cap-subject H-1B petitions are those competing for one of the 85,000 new H-1B slots available each fiscal year: 65,000 under the regular cap and 20,000 reserved for workers with qualifying advanced U.S. degrees. Because employers already pay other H-1B-related filing fees, the proposed charge drew immediate scrutiny.

In a Sept. 24 comment letter, Patrick Shen, the Chamber’s vice president for immigration policy, asked DHS to scrap the rule. “The U.S. Chamber of Commerce (‘the Chamber’) respectfully submits these comments on the Department of Homeland Security’s (‘DHS’) proposed rule that would impose a $103,265 fee on every H-1B petition subject to the annual numerical quota (the ‘Proposed Rule’),” the filing said.

The Chamber said that if DHS does not withdraw the proposal, it should at minimum extend the comment period and publish the full cost-allocation methodology behind the fee. Its objections centered on three points: whether DHS has legal authority to impose the charge, whether the agency’s cost-allocation method is valid, and whether its economic analysis is sound.

DHS has framed the proposal as a cost-recovery measure under its immigration fee-setting authority. In its regulatory impact analysis, the agency projected roughly $8.78 billion tied to the rule and said the money would be allocated across multiple agencies and functions, not just USCIS, the agency that adjudicates immigration benefits.

Under DHS’s analysis, the revenue would be spread among USCIS; the Justice Department’s Executive Office for Immigration Review, which runs the immigration courts; Immigration and Customs Enforcement; the Labor Department; the State Department; and Customs and Border Protection. About one-third each would go to USCIS and the immigration courts under the plan. DHS’s revenue model uses filing assumptions tied to the annual 85,000-visa H-1B cap.

Opposition to the proposal extends beyond business groups. A physician and health care coalition that includes the American Medical Association, the American College of Physicians and the American Academy of Family Physicians submitted a Sept. 23 letter warning that the fee would harm the health care workforce and asking for exemptions for physicians and dental practitioners.

Other organizations raising concerns include the Association of American Universities and Economic Innovation Group, signaling resistance from higher education and policy groups as well as employers. The proposal’s limited scope — applying only to cap-subject filings and not to cap-exempt H-1Bs — has not prevented broader concern among sectors that rely on the capped program.

The debate is also unfolding against a recent legal backdrop. A separate $100,000 supplemental H-1B payment created by presidential proclamation in 2025 was vacated by a federal district court in Massachusetts on June 8, 2026, in State of California v. Mullin. Stakeholders have pointed to that case in arguing that DHS lacks authority for the new proposal.

The comment period closed Sept. 24. The rule remains only a proposal, and DHS can now review the record, revise the measure, withdraw it or move to finalize it later.