In a Notice of Proposed Rulemaking published September 14, the Department of Homeland Security proposed tacking a staggering US $103,265 fee onto each H-1B petition counted against the annual cap—both the 65,000 regular slots and the 20,000 advanced-degree exemption. The fee would sit atop all existing USCIS charges and any payment required under Presidential Proclamation 10973, potentially pushing total filing costs above US $200,000 per worker if that proclamation is extended. DHS frames the surcharge as a cost-recovery mechanism for running the immigration system, but employer groups immediately blasted it as a de-facto “talent tax” that will price all but the largest companies out of the H-1B lottery. At current selection odds, a mid-size tech firm filing twelve registrations could face a seven-figure exposure in FY 2027. Immigration attorneys predict that employers will register far fewer candidates, driving down lottery volume and potentially improving selection chances for those who remain—yet severely restricting opportunities for new foreign graduates of U.S. universities. The NPRM allows only a 30-day public-comment window—unusually compressed for a rule of this magnitude—closing September 24. DHS signals it wants the fee in place before the March 2027 cap-registration cycle. Litigation is almost certain: the Chamber of Commerce and IT-service associations are preparing challenges arguing the fee exceeds statutory authority and is arbitrary given the Service’s existing revenue. Practical impacts could be dramatic for mobility programs. Employers that rely on H-1B cap hires would need to overhaul hiring pipelines, prioritize cap-exempt strategies through university affiliates and potentially shift headcount offshore. Compensation teams will have to budget for six-figure immigration costs per new hire, and relocation managers may see demand surge for Canada or Mexico assignments where work-permit costs remain modest. Until a final rule is published, current fees stand. HR leaders should nevertheless model cost exposure, brief finance stakeholders and prepare comments for the rulemaking docket before the September 24 deadline.
Source: I-9 Intelligence
