H-1B Reform May Affect University Hiring

The Department of Homeland Security sent an H-1B Reform Rule to the Office of Management and Budget on August 24, 2026. The draft proposes a $103,265 charge for petitions subject to the annual H-1B cap, according to the source report from VisaVerge.

This proposed fee targets employers who file under the regular H-1B cap or the advanced-degree exemption. The draft rule, however, appears to carve out an exemption. Qualifying cap-exempt universities and research organizations would not face this new cost for their own institutional filings. The rule remains under EO 12866 review and is not final as of August 28, 2026.

Proposed fee separates lottery filings from exempt hiring

The draft rule creates two distinct groups of H-1B filers. Employers subject to the cap, including those using the lottery system, would be liable for the proposed $103,265 fee if the rule is finalized. Cap-exempt institutions would generally avoid it.

This exemption is not automatic. A university or research organization must still meet specific requirements to qualify for cap-exempt status for each petition. The institutional identity alone does not grant a blanket waiver.

Exemption does not remove other H-1B requirements

Cap-exempt employers must still fulfill all standard H-1B obligations. These include proving the role is a specialty occupation, meeting wage obligations, filing a Labor Condition Application, and maintaining the petition after approval.

The employer retains these filing and compliance duties. The foreign worker's interest in accurate job details, lawful pay, and continued eligibility remains unchanged. The proposed fee concentrates the financial impact on cap-subject employers, particularly those seeking new hires through the annual lottery. The underlying need to support the position and comply with H-1B rules is not altered by the draft.

A final rule could indirectly influence hiring decisions. Employers facing the new charge may reassess pursuing a cap-subject hire. Qualifying exempt institutions would retain a cost advantage for their covered filings.

Rule follows earlier August fee action

This proposal comes after a separate H-1B-related fee action in August 2026. Summaries of that earlier action indicated it applied to universities and research institutions.

The broader reach of the earlier action gives the pending rule a different practical effect for exempt employers. The draft appears to preserve their favorable treatment under the proposed fee, rather than extending the earlier cost increase to the same group.

This contrast makes the rule relevant beyond just cap-subject employers. A university that hires through both exempt and cap-subject channels could face different financial consequences depending on each petition's classification. Public-facing immigration and higher-education analyses continue to describe the cap-exempt carve-out as intact in the draft. Any change before publication could alter the fee's reach.