The cost of hiring a new H-1B worker in the United States could rise dramatically under a proposal published by the US Department of Homeland Security. The proposed rule would add a $103,265 fee to every cap-subject H-1B petition, including petitions filed under the advanced-degree exemption. That amount would be charged on top of the existing filing fees already paid by employers.

For India, this matters far beyond immigration paperwork. Indian technology companies are among the most visible users of the H-1B program, while a large share of H-1B professionals are Indian nationals working in software, engineering, consulting and other skilled roles. A six-figure fee could therefore change how companies decide which jobs are worth sponsoring, where teams are located and whether some work is moved outside the United States.

The most important point is that the $103,265 charge is not yet a permanent fee in force. It is a proposed federal rule and still faces a public-comment period, legal scrutiny and the normal regulatory process before it could become effective.

What Exactly Has the US Proposed?

The Federal Register notice published on August 25 says DHS wants to establish a $103,265 fee for all H-1B cap-subject petitions. The fee would also apply to petitions under the 20,000-visa advanced-degree exemption and would be due when the employer files the petition.

The new charge would be additional. It would not replace the existing H-1B registration and filing costs, fraud-prevention fees, training fees or other payments that may apply depending on the employer and petition.

DHS says the proposal is intended to create a dedicated revenue source for the broader costs of administering the US immigration system. The department estimates that applying the fee to roughly 85,000 annual cap-subject H-1B petitions could generate about $8.8 billion a year.

Who Would Have to Pay the $103,265 H-1B Fee?

The proposal is aimed at employers filing cap-subject H-1B petitions. In practical terms, that means the company or organisation sponsoring the worker would be responsible for the payment when it files the petition.

The regular H-1B cap provides up to 65,000 visas a year, plus another 20,000 for eligible applicants with advanced degrees from US institutions. USCIS explains the cap process here. The proposal is targeted at these cap-subject cases rather than every H-1B petition filed in the United States.

That distinction matters because many universities, nonprofit research organisations and certain affiliated institutions file cap-exempt H-1B petitions. The proposed rule, as written, focuses on cap-subject petitions.

Why the Proposal Matters So Much for India

The H-1B program has long been one of the main routes used by US companies to hire skilled professionals from India. Large Indian IT service companies, multinational technology firms and consulting businesses all use the category, while many Indian engineers also move into H-1B status after studying or working in the United States.

India's technology industry body Nasscom has already urged the US government to consider the benefits of the H-1B program before imposing such a high fee. Reuters reported on August 25 that Nasscom argued Indian IT companies have reduced their dependence on H-1B workers over time by expanding local hiring in the United States and investing more than $1.1 billion in US STEM talent development.

Even so, the fee would change the economics of sponsorship. A company may still be willing to pay six figures for an extremely specialised engineer, researcher or senior technical leader. It is much harder to justify that cost for roles where the employer has several alternative hiring options.

What Could It Mean for Indian H-1B Applicants?

Applicants would not normally be expected to personally pay the proposed $103,265 charge. The bigger risk for workers is indirect: fewer employers may decide that a new H-1B petition makes financial sense.

This could make sponsorship more selective. Candidates with scarce skills, significant experience or roles tied directly to revenue and strategic projects may remain attractive. Entry-level applicants and jobs that can be filled locally or moved to another geography could face more pressure.

That makes skill differentiation even more important for Indian professionals. Our guide to AI jobs in India in 2026 explains how demand is shifting toward generative AI, agentic systems, machine learning, data infrastructure and evaluation roles. Highly specialised capabilities may become more valuable if sponsorship costs rise.

How Indian IT Companies Could Respond

The most immediate response would likely be tighter screening of which US roles genuinely require an H-1B hire. Companies could increase local recruitment, use more remote delivery from India, reorganise project staffing or move certain functions to lower-cost global delivery centres.

This does not automatically mean work disappears. A company that decides not to sponsor a worker in the United States may still need the same engineering, support or consulting capacity. Some of that work could instead remain in India, which is one reason immigration policy can influence where technology jobs are created rather than only who fills them.

That trend would intersect with India's wider effort to build more high-value technology work domestically. Headline Thread has also looked at India's attempt to become a larger AI power, including investments in compute, domestic models and technical talent.

Why Startups and Smaller Employers Could Feel the Biggest Impact

A $103,265 fee is easier for a very large technology company to absorb than for a startup, university spinout or smaller specialist business. The cost could therefore concentrate H-1B hiring among employers with deeper financial resources.

For a startup hiring a small engineering team, paying more than $100,000 before salary, benefits and other immigration expenses can fundamentally change the economics of one hire. Some companies may recruit remotely instead, while others may avoid international candidates despite having genuine skill shortages.

This is not the first attempt by the Trump administration to attach a roughly $100,000 cost to H-1B hiring. A previous payment requirement was challenged in court, and a US district judge vacated the agency guidance implementing it in June 2026. The government appealed.

DHS says the new rule relies on a different legal basis from the earlier presidential proclamation. That is likely to become central to any new lawsuits if the proposal is finalised.

Business groups and immigration advocates are expected to scrutinise whether such a large fee is genuinely connected to administrative costs and whether DHS has the authority to impose it without Congress creating a specific new charge.

What Has Not Changed Yet

The proposed $103,265 fee should not be treated as an immediate bill for every H-1B holder. Existing workers do not suddenly owe the amount, and the proposal does not mean all current H-1B visas have become more expensive overnight.

The rule is focused on cap-subject petitions and still has to move through the rulemaking process. Employers and workers should therefore distinguish between the current H-1B fee schedule and the proposed future charge.

What Happens Next?

The proposal will go through a public-comment period, giving employers, industry groups, universities, immigration organisations and individuals an opportunity to respond. DHS can then revise the rule before issuing any final version.

The rule could also face court challenges if finalised, particularly because the size of the proposed fee is unprecedented for a standard employment-based temporary visa petition.

For Indian applicants, the practical advice is to avoid assuming the proposal is already law while watching how major employers adjust their sponsorship plans. For Indian technology firms, the central question is whether the final cost would make US-based H-1B hiring uneconomic for a meaningful share of roles.

The Bottom Line

The proposed $103,265 H-1B fee is potentially one of the biggest changes to the economics of skilled US immigration in years. It would not eliminate the H-1B program, but it could turn sponsorship into a much more selective decision, especially for smaller employers and roles that can be hired locally or delivered from another country.

India would be especially exposed because of the scale of Indian participation in the technology workforce. At the same time, the proposal may reinforce a longer-running shift toward local US hiring by large Indian IT companies and more high-value engineering work being performed from India. Whether any of that happens depends first on whether DHS can turn the proposal into a legally durable final rule.