Key Highlights
The U.S. Citizenship and Immigration Services (USCIS), in a move that has sparked anxieties in the global tech and talent-mobility community, has implemented one of the greatest changes to the H-1B visa regime: a US$100,000 fee on some of the new petitions. This new charge comes into effect at 12:01 a.m. ET on September 21, 2025, and is supposed to offer protection to domestic employment opportunities. The change poses pressing strategy, cost and process dilemmas to employers, particularly those based in India and other talent-export markets. The blog explores in detail the meaning of the fee, who pays, who is not required to pay and what organisations are supposed to do.
What Changed & When?
The fee was introduced by a presidential proclamation on September 19, 2025, and was effective with respect to applicable filings on September 21. The order provides that in the case of some of the new H-1B applications as submitted on or after 12:01 a.m. ET on September 21, the employer will be obligated to make a non-refundable payment of US$100,000 to the government. It should be pointed out that these are on top of already existing filing fees, wage requirements, caps and compliance requirements.
Who Is Subject to the Fee?
The major conditions to invoke the fee are:
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Alternative H-1B petitions submitted during the cut-off time or after the cut-off time (12:01 a.m. ET, September 21, 2025).
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Beneficiaries beyond the United States who file the application and do not already possess H-1B status.
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These are petitions that ask to be processed in the U.S. by the consulate, port-of-entry notification, or pre-flight inspection instead of a change-of-status.
That is to say: In the case of an overseas candidate who will pass through the U.S. consulate to acquire H-1B status, the fee is applicable.
Also Read: How Many Types of Visa in USA? New Full Expert Guide
Who Must Pay the Fee?
In case of any cases that fit the above-mentioned requirements, the employer would be liable to pay. The payment can be done online on the USCIS site (through pay.gov). It is compulsory: the petitions submitted without payment may be subject to adjudication delays, or even revoked. USCIS can send out an RFE (Request for Evidence) to receive payment and any other supporting documents between September 21 and October 20, 2025.
Who Is Exempt from the Fee?
The effect is mitigated with critical exemptions in regard to specific filings:
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It is exempt from change-of-status, extension or amendment petitions in the U.S., which are filed on behalf of persons who presently hold a valid status.
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Current H-1B visa holders who want to re-enter or renew the visa are not to pay the US100K fee.
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Although cap-exempt employers (non-profit universities, affiliated research organisations) do not have to pay the fee, the petition must meet the triggering criteria (i.e. new overseas beneficiary via consular processing).
The presence of a waiver can be in exceptional situations of national interest, in which the employer will be able to meet four criteria: national interest advantage, absence of a qualified U.S. worker, no harm or challenge to United States welfare/security and payment of the fee would be against U.S. interests.
Process & Payment Details
In the situation where the fee is applicable, the following steps of the process are noteworthy:
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The amount should be paid through the pay.gov portal as per the USCIS regulations.
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The amount is a one-time fee on that particular petition. It is neither an annual nor a recurrent fee. The definition of the proclamation is one year unless renewed.
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The fee will not affect the statutory H-1B cap (65,000 regular + 20,000 master’s cap) or the regular fee filing requirements and wage minimum. The fee is additional.
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The fee on petitions filed between 21 Sept and 20 October 2025 will be held until the payment is made; previous petitions can be subject to a back-payment order or revocation notice.
Also Read: Cost of Transit Visa for USA: New Fees & Process Guide
Practical Implications for Employers
The immediate and far-reaching impacts of this new fee on the employers, particularly in industries such as IT services, consulting, offshoring, and global acquisition of talents are:
1. Cost & Budgeting Impacts
An additional US$100,000 over the head of the affected foreign recruit is a huge price. Employers will be forced to reconsider the budgets, maybe through a change of hires plans or delimiting the candidates who will incur the fee.
2. Strategy on Processing Path
Such firms can decide to submit a change-of-status application in case the beneficiary has already entered the U.S. and therefore evade the charge. During adjudication, they might discourage travelling to foreign countries.
3. Recruitment Planning
Recruiting new foreign skills through the consular processing can become less appealing. Employers may also be more interested in hiring a person in the U.S. or a person who is already in the U.S. and in a position where he/she can change.
4. Risk Management
The adjudication can be stalled to pay fees; thus, the employers should include delays in timing. Also, the fee rule is comparatively new, and has been subjected to judicial scrutiny (e.g. by the U.S. Chamber of Commerce), and control can change, so the firms will have to keep abreast.
5. Influence on Indian and Global Pipelines of Talent
On firms that recruit Indian nationals in large numbers either on campuses or internationally and stamp them through consular stamping, this charge brings an additional deterrent. They might have to reorganize movement programs or rethink models of offshore to on-site transfer.
Exemptions in Detail: Scenarios That Avoid the Fee
The following are a few illustrations of scenarios:
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Exemption Case: A F-1 student on OPT in the United States: It is the employer who submits a change-of-status H-1B petition (in the United States), and the individual is staying in the country - the US$100K fee will not be paid.
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Fee Applicable Case: The student goes to a foreign country without permission, and the employer makes a petition, which will involve a consular processing, then an application fee of 100K US is applicable.
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Cap-Exempt Employer: It is notwithstanding a non-profit university that the employer is exempted; provided that he or she submits a new H-1B petition on behalf of a person who is outside the U.S. and seeks to do so through consular processing, the fee would be imposed.
Legal Challenges and Forward Outlook
Although the rule is intact, it has already received legal backlash. The U.S. Chamber of Commerce has taken the courts to court, complaining that such a fee is beyond the executive powers and is against the fee-setting model of the Immigration and Nationality Act. There is no interim relief issued so far, and this implies that the employers should continue to act as though the fee is binding, as they continue to keep an eye on the progress.
In terms of future outlook:
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Employers can set hiring in such a way as to prefer a U.S. status change to overseas processing.
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The proclamation refers to one year, indicating that this could be a short-term expense of the US government unless the government prolongs it.
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It is likely that visits to the visa-stamp will be re-organised, travel-policy co-ordination will be re-organised, and in-house immigration strategies will be re-structured.
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It can change in the labour market in the U.S. and global mobility flows, with a decrease in the number of foreign hires and a greater focus on local talent or mobility.
Also Read: Top Software Engineer Jobs in USA: New Pay, Scope & More
What Employers Should Do Right Now
In response to the change, global hiring programme employers must immediately do the following:
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Track All Current and Intended H-1B Applications: Find out which beneficiaries are both in the U.S. and outside the country, and whether they include consular processing.
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Calculate Processing Path: Consider a change-of-status filing where possible (instead of consular/stamp processing) to save the fee.
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Review Travel Policies: Recommend that beneficiaries in-country do not travel during adjudication or right after approval to cause consular processing (and charge).
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Budget: The cost of the relevant cases is US$100K.
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Legal Check: Check with immigration counsel on applicability, dangers of waiver, and records of possible national-interest exemptions.
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Keep Up-to-Date: Keep track of changes such as court rulings, legislative amendments and updated USCIS policies.
Conclusion
Having a US 100000 charge on some new H-1B applications is a tremendous change in American immigration policy, especially in the global employment of high-skilled workers. To the employers, particularly those accustomed to offshore staffing and international hiring pipelines, this is redesigning the cost models, processing strategies, and candidate mobility. Although not every H-1B petition is a feeable one - ones filed in the U.S. as a change of status are not subject to it - the fee will be incurred by many of the new foreign employees through the consular processing. Employers should be judicious, responsive and adapt their immigration plans to the new world as lawsuits continue and a change of policy occurs.
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