Summary

• USCIS has confirmed that the new $100,000 H-1B visa fee will apply only to new petitions filed on or after September 21, 2025, for beneficiaries outside the United States.
• Current H-1B holders, as well as those filing for extensions, amendments, or change of status within the U.S., are exempt from the fee.
• Employers filing new H-1B petitions must use the USCIS online payment system, applicable to new entrants only.
• The U.S. Chamber of Commerce has filed a lawsuit challenging the fee as unlawful and economically harmful to American businesses.

Introduction

The U.S. Citizenship and Immigration Services (USCIS) has issued new guidance clarifying the scope of the proposed $100,000 H-1B visa fee, offering relief to existing foreign workers, students, and employers concerned about the rule’s reach. The clarification, published in late September 2025, confirms that the fee will not apply to current H-1B visa holders, extension filings, or change of status applications made within the United States. Instead, the fee targets new H-1B petitions filed for individuals outside the U.S. who are seeking initial visa issuance or consular notification.

The announcement provides much-needed clarity following weeks of confusion surrounding the implementation timeline and eligibility of the fee, which was introduced as part of broader immigration reforms aimed at addressing labor market concerns.

Background

The H-1B visa is a nonimmigrant classification allowing U.S. employers to temporarily employ foreign workers in specialty occupations that require theoretical or technical expertise. Common fields include information technology, engineering, mathematics, and health sciences. The program operates under an annual quota system, with 65,000 new visas available each fiscal year and an additional 20,000 visas reserved for applicants holding advanced degrees from U.S. universities.

Certain employers including universities, nonprofit research organizations, and government research institutions—are exempt from the annual cap, allowing them to hire H-1B workers outside the quota limitations.

Clarification Issued by USCIS

To address uncertainty, USCIS issued a clarification stating that:

• The $100,000 fee only applies to new H-1B petitions filed on or after September 21, 2025, for beneficiaries outside the U.S. without valid H-1B status.
• The fee does not apply to existing H-1B visa holders seeking extensions, amendments, or change of status within the United States.
• Applicants moving from other visa categories—such as F-1 (student) or L-1 (intra-company transfer)—to H-1B status within the U.S. are also exempt.
• Employers must use the online USCIS payment system to process the fee for qualifying new applications.
• USCIS further emphasized that current visa holders and petitions submitted before September 21, 2025 remain unaffected and that individuals with valid visas can continue to travel in and out of the U.S. without penalty.

Limited Scope of the $100,000 Fee

The fee applies strictly to new petitions filed for foreign nationals outside the United States seeking initial entry under H-1B status. It does not impact those already holding valid visas or applying for renewals, status changes, or in-country transfers.

Exemptions for Students and Current Workers

The clarification ensures that international students transitioning from F-1 to H-1B and employees moving between visa categories are not penalized. This exemption aims to maintain continuity for foreign professionals already integrated into the U.S. labor market.

Employer Implications and Payment Requirements

Employers filing new petitions must pay the $100,000 fee electronically through USCIS’s designated system. This requirement streamlines payment verification and ensures transparency in fee collection.

Continued Annual Caps and Exemptions

The existing H-1B annual cap of 65,000 visas, with an additional 20,000 for advanced degree holders, remains unchanged. Cap-exempt employers, including universities and nonprofit research institutions, will continue to operate under current rules without the additional fee.

Ongoing Legal Challenges

The U.S. Chamber of Commerce, joined by several technology associations, filed a lawsuit on October 17, 2025, arguing that the $100,000 fee is “unlawful” and “contrary to congressional intent.” The plaintiffs contend that such a high fee would significantly raise labor costs, discourage hiring, and undermine U.S. innovation and competitiveness.

In its defense, the administration maintains that the measure is designed to “protect American workers” and reduce perceived misuse of the H-1B program. The outcome of the legal challenge could determine whether the fee is implemented as planned for the FY 2026 H-1B cycle.

Broader Implications for the U.S. Labor Market

Economists and policy experts remain divided over the potential impact of the fee. Proponents argue it will encourage companies to prioritize hiring domestic workers, while critics warn it could discourage high-skilled immigration and shift global talent toward other countries such as Canada or the U.K.

For many multinational employers, the additional cost could also affect workforce planning, contract pricing, and global mobility strategies. Smaller companies and startups, in particular, may find the fee prohibitive, limiting their access to specialized talent.

The USCIS clarification on the $100,000 H-1B visa fee provides much-needed relief for foreign workers, international students, and employers by limiting the fee’s applicability to new petitions filed after September 21, 2025, for beneficiaries outside the United States. Existing visa holders, extensions, and change-of-status applicants remain unaffected.

The clarification reaffirms the government’s intent to preserve the core functions of the H-1B program while introducing financial and regulatory reforms aimed at curbing abuse and supporting U.S. labor market goals. However, the legal and economic implications of such a high fee remain uncertain as industry groups challenge its validity in court.

Moving forward, employers should carefully review filing timelines, maintain compliance with USCIS regulations, and monitor developments in the ongoing litigation.