- DHS sent the H-1B Reform Rule to OMB on August 24, 2026, with a proposed $103,265 fee for cap-subject petitions.
- The draft appears to exclude cap-exempt universities and research organizations from the new charge.
- The rule remains in EO 12866 review, and as of August 28, 2026, it is not final.
The Department of Homeland Security sent an H-1B Reform Rule to OMB on August 24, 2026, with a proposed $103,265 charge aimed at cap-subject petitions. The draft appears to leave qualifying cap-exempt universities and research organizations outside the new fee.
The proposal covers petitions filed under the regular H-1B cap and the advanced-degree exemption. It does not appear to extend the charge to employers whose petitions qualify for cap-exempt treatment.
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That distinction could spare universities, research nonprofits and government research organizations from a new cost on their own institutional filings. The proposal remains under review.
The Office of Information and Regulatory Affairs record places the rule in pending EO 12866 review. A related review action concluded on August 19, 2026, with the status “Consistent with Change,” according to the federal regulatory record.
The proposed charge separates lottery filings from exempt institutional hiring
The draft divides H-1B filings into two practical groups. Cap-subject employers, including organizations hiring through the lottery system, would face the proposed charge if the rule becomes final.
Qualifying cap-exempt institutions would generally avoid it.
| H-1B filing category | Treatment described in the proposal |
|---|---|
| Regular cap petitions | Included in the proposed $103,265 fee |
| Advanced-degree exemption petitions | Included in the proposed $103,265 fee |
| Qualifying university petitions | Not included in the proposed fee |
| Nonprofit research organization petitions | Not included in the proposed fee |
| Governmental research organization petitions | Not included in the proposed fee |
The cap-exempt classification depends on the employer meeting the applicable requirements. A university or research organization would not receive a blanket waiver for every H-1B filing based only on its institutional identity.
The exemption would not remove the rest of the H-1B workload
Cap-exempt employers would still have to satisfy ordinary H-1B requirements. Those include proving a specialty occupation, meeting wage obligations, filing a Labor Condition Application, and maintaining the petition after approval.
The employer carries those filing and compliance duties. The foreign worker still has an interest in accurate job details, lawful pay and continued eligibility under the approved petition.
The proposed fee would instead concentrate the financial change on cap-subject employers, particularly those seeking new hires through the annual lottery process. The draft does not change the underlying need to support the offered position and comply with H-1B rules.
A final rule could also affect hiring decisions indirectly. Employers facing the new charge may reassess whether to pursue a cap-subject hire, while qualifying exempt institutions would retain a cost advantage on their own covered filings.
An earlier August fee action reached a wider group
The proposal comes after a separate H-1B-related fee action in August 2026. Summaries of that earlier proclamation said it reached universities and research institutions.
That broader reach gives the pending rule a different practical effect for exempt employers. The draft appears to preserve their treatment under the proposed fee, rather than extending the earlier cost increase to the same group.
The contrast also makes the rule relevant beyond cap-subject employers. A university that hires both through exempt and cap-subject channels could face different financial consequences depending on the petition’s classification.
The rule’s current status remains unsettled. As of August 28, 2026, it has not become final and remains in the federal review process.
Public-facing immigration and higher-education analyses continue to describe the cap-exempt university and nonprofit carve-out as intact in the draft. Any change before publication could alter the fee’s reach, but the proposal currently directs the charge at cap-subject filings.
