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Tech Industry Opposes $103,265 H-1B Fee

Written by Aanya Menon | 9/25/2026

TechNet urged DHS to withdraw a proposed six-figure H-1B fee, arguing that the added cost would make it harder for U.S. companies to recruit skilled workers. The proposal could be especially significant for international graduates seeking employer sponsorship after studying in the United States.

Industry Challenges the Proposal

TechNet, a trade association representing technology executives and companies, filed comments on September 24, 2026, opposing a Department of Homeland Security proposal to add a $103,265 fee to H-1B cap-subject petitions.

The organization said the cost would create a major barrier for startups and smaller employers while weakening companies’ ability to recruit workers for specialized positions. It also questioned DHS’s legal authority, cost calculations and assessment of the proposal’s broader economic effects.

TechNet asked the department to withdraw the rule and develop an alternative approach with employers. The public comment period for the proposal closed on September 24, 2026.

What DHS Is Proposing

DHS published the proposed rule in the Federal Register on August 25, 2026. It would require petitioners to pay the new fee when filing all cap-subject H-1B petitions, including petitions covered by the advanced-degree exemption. The charge would be added to other applicable government fees.

DHS said the revenue would help cover immigration-system costs across several federal agencies, including U.S. Citizenship and Immigration Services and the departments of State, Labor and Justice. Based on an estimated 85,000 cap-subject filings annually, the department calculated that the proposal would add about $8.78 billion in yearly costs for petitioners.

The proposal is not yet a final rule. DHS must review public comments before deciding whether to revise, finalize or withdraw it.

Why Students and Employers Care

The H-1B program allows U.S. employers to sponsor foreign professionals for temporary work in specialty occupations. Technology companies are among its prominent users, but employers in engineering, finance, health care, education and other fields also rely on the program.

For international students, the proposal could affect the transition from F-1 status and Optional Practical Training to H-1B employment. Because the fee would cover cap-subject petitions, employers sponsoring recent graduates could face the additional cost even when the employee is already in the United States.

TechNet argued that this could make companies less willing to sponsor U.S.-educated international graduates, particularly for early-career roles. Large employers may be better positioned to absorb the expense, while startups, universities and smaller businesses could have fewer practical sponsorship options.

The proposal follows earlier litigation over a separate $100,000 H-1B payment introduced through a presidential proclamation in 2025. A federal judge struck down that policy on June 8, 2026, adding legal and operational uncertainty for employers and foreign professionals planning future filings.

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