On September 19, 2025, a Presidential Proclamation introduced a $100,000 government fee for certain new H-1B visa applications. This measure aims to “protect domestic employment opportunities,” but it has generated significant uncertainty for employers, including those sponsoring international students.
The U.S. Citizenship and Immigration Services ( USCIS) issued guidance on October 20, 2025, clarifying how the rule applies and outlining specific exemptions. H-1B remains the primary work visa for many high-skilled roles in the U.S. The proclamation adds a substantial upfront cost to new overseas H-1B sponsorships but as clarified in the October 20th guidance, in-country change of status and extension petitions are exempt from this fee.
In this list of FAQs, we provide answers to several questions we received since the proclamation and the USCIS guidance was published.
Q. What changed on September 19, 2025?
A presidential proclamation announced a new $100,000 government fee tied to certain new H-1B petitions. Agencies later clarified how and when it applies, with an effective filing timestamp of 12:01 a.m. ET on September 21, 2025.
Q. Who is subject to the Fee?
The $100,000 fee applies only to new H-1B petitions filed:
Employers filing new H-1B petitions for beneficiaries outside the United States (or requesting consular/port-of-entry processing) after 12:01 a.m. ET, Sept 21, 2025.
Q. Does the fee apply to change-of-status cases (e.g., F-1 to H-1B) filed within the U.S.?
No. According to USCIS guidance, the proclamation does not apply to petitions filed for individuals already in the United States that request and are granted a change of status, amendment, or extension of stay.
Q. If a beneficiary later travels abroad, will the fee be triggered?
The USCIS indicated that a beneficiary whose in-country petition (amendment, change of status, or extension) is approved is not subject to the $100,000 payment if they later apply for a visa or re-enter on that basis.
Q. How do employers pay the $100,000 fee?
The USCIS guidance referenced that the new fee must be paid electronically (through their website pay.gov) and provided process details in the October updates.
Q. Is this fee one-time or annual?
Based on official government statements, as well as corroborating media and legal interpretations, the $100,000 fee appears to be a one-time charge associated with the filing of a new petition, not a recurring annual fee. Furthermore, the proclamation itself is effective for only one year; and without an extension, the issue of an annual or repeat charge does not arise.
Q. Does the fee apply to existing H-1B holders seeking simple re-entry on a valid visa?
No. Existing H-1B visa holders and those seeking re-entry on a current H-1B visa are not covered.
Q. What petitions are clearly outside the fee’s scope?
Amendments, extensions, and changes of status petitions approved for individuals within the U.S. Previously filed petitions (the rule is prospective only), i.e., petitions filed before September 21, 2025, 12.01 am. Q. Are there any exceptions or waivers?
Exceptions to the $100,000 fee may be granted by the Secretary of Homeland Security under exceptional and rare circumstances. Such an exception may be approved when the Secretary determines that (i) the foreign national’s presence in the United States in H-1B status serves the national interest, (ii) no qualified U.S. worker is available to fill the position, (iii) the foreign national poses no threat to the security or welfare of the United States, and (iv) requiring the employer to pay the fee would be contrary to U.S. interests. Employers seeking such an exemption must follow the procedures and instructions provided by the USCIS for submitting requests to the Secretary of Homeland Security.
Q. What happens to petitions that were filed between September 21, and October 20, 2025? Will the employer have to pay the $100,000 fee?
For filings made between September 21 and October 20 that trigger the $100,000 fee:
The proclamation does not change the statutory cap (65,000 + 20,000 U.S. master’s cap) or regular filing fees; it adds a separate $100,000 charge where applicable. Employers must still pay all the existing filing fees, meet prevailing wage/actual wage rules, and comply with all the rules and regulations applicable under the H-1B program.
Q. What about consular processing vs. a change of status?
If the petition requests consular or port-of-entry notification for a beneficiary outside the U.S., the new fee will apply. If the petition requests a change of status in the U.S. and is granted, the fee will not apply.
Q. Has the fee been challenged in court?
Yes. The U.S. Chamber of Commerce filed a suit seeking to block enforcement, arguing the fee exceeds executive authority and conflicts with the Immigration and Nationality Act’s fee framework. Additional plaintiffs filed earlier challenges. However, the courts have not granted any interim relief yet.
Q. F-1 Students on OPT: Are They Affected?
No, not if they remain in the United States. An F-1 student on Optional Practical Training (OPT) who is selected in the H-1B lottery and whose employer files a Change of Status petition from F-1 to H-1B within the U.S. is not subject to the $100,000 fee.
Q. What immediate steps should employers take?
Petitions requesting a change of status, amendment, or extension for individuals inside the United States.
Example 1: Exempt
An F-1 OPT employee in the U.S. transitions to H-1B status under the cap. The change of status petition is filed and approved without the student departing the U.S.
$100,000 fee does not apply.
Example 2: Subject to Fee
The same F-1 OPT employee travels abroad before approval, requiring consular processing for the H-1B visa stamp.
$100,000 fee applies.
Q. If a petitioner files for a change of status, is it guaranteed that the $100,000 fee will not apply if there is no cause to deny the change of status?
One cannot assume that an approvable change of status will surely be approved without triggering the $100,000 fee. The USCIS has discretionary powers and may deny cases if the adjudicating officer deems it fit.
Q. Does the $100,000 apply to cap-exempt companies/entities?
Yes, it even applies to H-1B petitions filed by the following type of employers, after the September 21 cut-off:
For companies recruiting F-1 international graduates under OPT:
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com)
The U.S. Citizenship and Immigration Services ( USCIS) issued guidance on October 20, 2025, clarifying how the rule applies and outlining specific exemptions. H-1B remains the primary work visa for many high-skilled roles in the U.S. The proclamation adds a substantial upfront cost to new overseas H-1B sponsorships but as clarified in the October 20th guidance, in-country change of status and extension petitions are exempt from this fee.
In this list of FAQs, we provide answers to several questions we received since the proclamation and the USCIS guidance was published.
Q. What changed on September 19, 2025?
A presidential proclamation announced a new $100,000 government fee tied to certain new H-1B petitions. Agencies later clarified how and when it applies, with an effective filing timestamp of 12:01 a.m. ET on September 21, 2025.
Q. Who is subject to the Fee?
The $100,000 fee applies only to new H-1B petitions filed:
- On or after 12:01 a.m. (ET), September 21, 2025
- On behalf of beneficiaries who are outside the United States and do not hold an H-1B visa
- Where the petition requests consular processing, port-of-entry notification, or pre-flight inspection
Employers filing new H-1B petitions for beneficiaries outside the United States (or requesting consular/port-of-entry processing) after 12:01 a.m. ET, Sept 21, 2025.
Q. Does the fee apply to change-of-status cases (e.g., F-1 to H-1B) filed within the U.S.?
No. According to USCIS guidance, the proclamation does not apply to petitions filed for individuals already in the United States that request and are granted a change of status, amendment, or extension of stay.
Q. If a beneficiary later travels abroad, will the fee be triggered?
The USCIS indicated that a beneficiary whose in-country petition (amendment, change of status, or extension) is approved is not subject to the $100,000 payment if they later apply for a visa or re-enter on that basis.
Q. How do employers pay the $100,000 fee?
The USCIS guidance referenced that the new fee must be paid electronically (through their website pay.gov) and provided process details in the October updates.
Q. Is this fee one-time or annual?
Based on official government statements, as well as corroborating media and legal interpretations, the $100,000 fee appears to be a one-time charge associated with the filing of a new petition, not a recurring annual fee. Furthermore, the proclamation itself is effective for only one year; and without an extension, the issue of an annual or repeat charge does not arise.
Q. Does the fee apply to existing H-1B holders seeking simple re-entry on a valid visa?
No. Existing H-1B visa holders and those seeking re-entry on a current H-1B visa are not covered.
Q. What petitions are clearly outside the fee’s scope?
Exceptions to the $100,000 fee may be granted by the Secretary of Homeland Security under exceptional and rare circumstances. Such an exception may be approved when the Secretary determines that (i) the foreign national’s presence in the United States in H-1B status serves the national interest, (ii) no qualified U.S. worker is available to fill the position, (iii) the foreign national poses no threat to the security or welfare of the United States, and (iv) requiring the employer to pay the fee would be contrary to U.S. interests. Employers seeking such an exemption must follow the procedures and instructions provided by the USCIS for submitting requests to the Secretary of Homeland Security.
Q. What happens to petitions that were filed between September 21, and October 20, 2025? Will the employer have to pay the $100,000 fee?
For filings made between September 21 and October 20 that trigger the $100,000 fee:
- The USCIS may pause adjudication until the additional fee is paid.
- Employers could receive RFEs specifying how to pay and what documentation to provide.
- Petitions already approved without the fee (in consular cases) may trigger a retroactive payment notice or could be revoked if payment isn’t made in a timely manner after a notice is issued.
The proclamation does not change the statutory cap (65,000 + 20,000 U.S. master’s cap) or regular filing fees; it adds a separate $100,000 charge where applicable. Employers must still pay all the existing filing fees, meet prevailing wage/actual wage rules, and comply with all the rules and regulations applicable under the H-1B program.
Q. What about consular processing vs. a change of status?
If the petition requests consular or port-of-entry notification for a beneficiary outside the U.S., the new fee will apply. If the petition requests a change of status in the U.S. and is granted, the fee will not apply.
Q. Has the fee been challenged in court?
Yes. The U.S. Chamber of Commerce filed a suit seeking to block enforcement, arguing the fee exceeds executive authority and conflicts with the Immigration and Nationality Act’s fee framework. Additional plaintiffs filed earlier challenges. However, the courts have not granted any interim relief yet.
Q. F-1 Students on OPT: Are They Affected?
No, not if they remain in the United States. An F-1 student on Optional Practical Training (OPT) who is selected in the H-1B lottery and whose employer files a Change of Status petition from F-1 to H-1B within the U.S. is not subject to the $100,000 fee.
Q. What immediate steps should employers take?
- Map cases: Identify beneficiaries outside the U.S. vs. in-country change of status/extension cases.
- Decide processing path: Change of Status (if eligible) may avoid the $100,000 fee.
- Budget timing: re-think recruiting practices for overseas hires.
- Document exceptions: If pursuing a waiver, compile national-interest evidence.
Petitions requesting a change of status, amendment, or extension for individuals inside the United States.
Example 1: Exempt
An F-1 OPT employee in the U.S. transitions to H-1B status under the cap. The change of status petition is filed and approved without the student departing the U.S.
$100,000 fee does not apply.
Example 2: Subject to Fee
The same F-1 OPT employee travels abroad before approval, requiring consular processing for the H-1B visa stamp.
$100,000 fee applies.
Q. If a petitioner files for a change of status, is it guaranteed that the $100,000 fee will not apply if there is no cause to deny the change of status?
One cannot assume that an approvable change of status will surely be approved without triggering the $100,000 fee. The USCIS has discretionary powers and may deny cases if the adjudicating officer deems it fit.
Q. Does the $100,000 apply to cap-exempt companies/entities?
Yes, it even applies to H-1B petitions filed by the following type of employers, after the September 21 cut-off:
- Institutions of higher education (nonprofit colleges or universities)
- Nonprofit organizations that are affiliated with institutions of higher education through a written affiliation agreement and an active working relationship
- Government research organizations
- Nonprofit research organizations
For companies recruiting F-1 international graduates under OPT:
- File change-of-status petitions whenever possible to avoid the $100,000 fee.
- Advise employees against travel during the adjudication period.
- Consult legal counsel before any international travel if a change of status petition is pending or recently approved.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com)
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