A $100,000 Fee Just Changed the H-1B Math
In early 2025, an executive order introduced one of the most dramatic cost increases in the history of the H-1B program: a $100,000 supplemental fee on certain H-1B petitions. The fee, which took effect later that year, applies to petitions filed on behalf of beneficiaries who are outside the United States at the time of filing.
This fee has sent shockwaves through the immigration ecosystem. For some employers, the cost of sponsoring an H-1B worker has effectively doubled or tripled overnight. For others — particularly those sponsoring workers already in the U.S. on OPT or other status — the fee does not apply at all.
Understanding who pays, who is exempt, and what happens when the fee expires in September 2026 is critical for every employer and worker navigating the H-1B system this year.
What Is the $100,000 H-1B Fee?
The $100,000 fee is a supplemental charge imposed on H-1B petitions where the beneficiary (the foreign worker) is located abroad and will require consular processing to enter the United States. It was authorized by executive order and implemented through an interim final rule published by the Department of Homeland Security.
The fee is paid by the petitioning employer, not the worker. Under existing regulations, employers are prohibited from passing H-1B filing costs to the beneficiary, and USCIS has stated this prohibition applies to the $100,000 fee as well.
Key Facts at a Glance
| Detail | Information |
|---|---|
| Fee amount | $100,000 per petition |
| Who pays | The petitioning employer |
| Effective date | 2025 (via executive order) |
| Expiration | September 30, 2026 |
| Legal authority | Executive order + interim final rule |
| Applies to | Petitions for beneficiaries abroad (consular processing) |
| Does not apply to | Change of status within U.S., extensions, certain exempt categories |
Who Must Pay the $100,000 Fee
The fee applies when all of the following conditions are met:
Common Scenarios Where the Fee Applies
Who Is Exempt from the $100,000 Fee
Several important categories are exempt from the fee. These exemptions are the difference between a $100,000+ filing cost and a standard filing cost.
1. Change of Status Within the United States
If the beneficiary is already in the U.S. on a valid nonimmigrant status (F-1 OPT, L-1, O-1, J-1, etc.) and the petition requests a change of status to H-1B, the $100,000 fee does not apply. This is the most significant exemption and affects a large share of H-1B petitions.
This exemption is why the fee disproportionately impacts employers hiring from abroad rather than from the U.S. talent pool. Workers on F-1 OPT/STEM OPT, which includes the majority of new H-1B cap applicants, are typically already in the United States.
2. Current H-1B Holders (Extensions and Amendments)
The fee does not apply to:
This means the fee is primarily a one-time cost associated with bringing a new worker into the U.S. from abroad, not an ongoing cost for maintaining H-1B workers.
3. Cap-Exempt Employers
Petitions filed by cap-exempt employers are partially shielded. The executive order language and implementing regulations have created some ambiguity here, but USCIS guidance issued in late 2025 clarified that the following are exempt:
However, nonprofit entities that are merely affiliated with (rather than part of) a qualifying institution may still be subject to the fee depending on the specific relationship.
4. Other Exemptions
Additional exemptions include:
Exemption Summary Table
| Category | Fee Required? | Notes | |----------|:------------:|-------| | New hire from abroad (consular processing) | Yes | Full $100,000 fee | | Change of status (beneficiary in U.S.) | No | Most cap petitions for OPT workers | | H-1B extension | No | Existing H-1B holders | | H-1B transfer (worker in U.S.) | No | Changing employers | | H-1B amendment | No | Changing worksite/duties | | University/nonprofit research employer | No | Cap-exempt institutions | | Government research organization | No | Cap-exempt institutions | | H-1B1 (Chile/Singapore) | No | Separate classification | | E-3 (Australia) | No | Separate classification |
Total H-1B Costs: Before vs. After the $100,000 Fee
The $100,000 fee stacks on top of existing H-1B filing costs, which were already substantial after USCIS fee increases in 2024.
Cost Comparison for a Standard Cap-Subject Petition
| Cost Component | Before $100K Fee | After $100K Fee (Abroad) | After $100K Fee (In U.S.) | |---------------|:----------------:|:------------------------:|:-------------------------:| | Registration fee | $215 | $215 | $215 | | Base filing fee (I-129) | $1,655 | $1,655 | $1,655 | | Asylum Program Fee | $600 | $600 | $600 | | Fraud Prevention Fee | $500 | $500 | $500 | | ACWIA Training Fee (large employer) | $1,500 | $1,500 | $1,500 | | Public Law 114-113 Fee (50%+ H-1B) | $4,000 | $4,000 | $4,000 | | Premium Processing (optional) | $2,805 | $2,805 | $2,805 | | $100,000 Supplemental Fee | $0 | $100,000 | $0 | | Attorney fees (estimate) | $3,000–$6,000 | $3,000–$6,000 | $3,000–$6,000 | | Total (without premium/attorney) | $4,470–$8,470 | $104,470–$108,470 | $4,470–$8,470 |
The Public Law 114-113 fee applies only to employers with 50 or more employees where more than 50% are on H-1B or L-1 status.
The difference is staggering. For an employer hiring from abroad, total costs can exceed $110,000 per petition — before even considering relocation expenses, onboarding costs, or the worker's salary.
Impact on Employers and Hiring Patterns
Large Tech Companies
Major technology companies with significant international hiring pipelines have been hit hard. Companies like Google, Meta, Amazon, and Microsoft regularly recruit from top global universities and their own international offices. While these companies can absorb the cost given their margins, many have reportedly shifted hiring priorities toward candidates already in the U.S. on OPT or other status.
You can explore which companies sponsor the most H-1B workers and what they pay on H1B Data Hub's company directory.
IT Staffing and Consulting Firms
IT staffing companies that historically brought workers from India and other countries to fill client projects face the greatest disruption. A firm filing 200 petitions for workers abroad would face $20 million in supplemental fees alone — an amount that could exceed the company's annual profit margin.
Many of these firms have pivoted to sponsoring workers already in the U.S. or have reduced their H-1B filing volumes altogether.
Startups and Small Employers
Small companies and startups that found the perfect candidate abroad are now forced to weigh whether a $100,000+ filing cost is justifiable. For a 20-person startup, this fee could represent a significant portion of the company's quarterly budget. Some have turned to alternative visa categories (O-1A, L-1, remote work arrangements) to avoid the fee entirely.
Impact on Workers
While employers bear the direct cost, workers are affected indirectly:
Legal Challenges
The $100,000 fee has faced multiple legal challenges since its implementation:
Key Arguments Against the Fee
Current Status of Litigation
As of March 2026, several cases are working through federal courts. No court has issued a nationwide injunction blocking the fee, though one district court issued a preliminary injunction in a narrow case involving a university-affiliated research institution. The cases are expected to reach circuit courts later in 2026.
The legal uncertainty has created a difficult planning environment for employers. Some are filing petitions and paying the fee under protest, preserving their right to seek refunds if the fee is ultimately struck down.
The September 2026 Expiration
One of the most important aspects of the $100,000 fee is its built-in expiration date. The executive order specified that the fee authority expires on September 30, 2026 unless renewed by a subsequent executive order or superseded by legislation.
What Happens After Expiration?
If the fee expires without renewal:
Could It Be Renewed?
Renewal depends entirely on the political environment. The current administration has signaled support for maintaining the fee, but executive orders are subject to political shifts. Congress could also act to either codify the fee into statute (making it permanent) or explicitly prohibit it.
Employers should plan for both scenarios: the fee continuing beyond September 2026 and the fee disappearing entirely.
Strategies for Employers
1. Prioritize U.S.-Based Candidates
The most straightforward way to avoid the fee is to sponsor H-1B workers who are already in the United States on a valid nonimmigrant status. Workers on F-1 OPT, F-1 STEM OPT, L-1, O-1, J-1, and other categories can file for change of status without triggering the $100,000 fee.
2. Explore Alternative Visa Categories
For candidates abroad, consider whether other visa categories might be appropriate:
3. Time Your Filings
If the fee is likely to expire in September 2026, employers with flexibility may choose to delay filings for workers abroad until after the expiration date. However, this strategy carries risk if the fee is renewed.
4. Budget and Plan Ahead
For employers who must file petitions subject to the fee, incorporate the $100,000 cost into hiring budgets and headcount planning. Some companies are amortizing the cost over the expected tenure of the employee.
How to Research Employer Sponsorship Data
Understanding which employers actively sponsor H-1B workers — and what they pay — is essential for both workers and competing employers. H1B Data Hub provides searchable data on hundreds of thousands of H-1B filings, including:
This data can help workers identify employers most likely to absorb the $100,000 fee and help employers benchmark their offers against competitors.
Key Takeaways
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Immigration law is complex and changes frequently, and the $100,000 fee is subject to ongoing litigation that could alter its applicability. Consult a qualified immigration attorney for advice specific to your situation. Visit H1B Data Hub to explore real H-1B filing data including employer costs, salaries, and sponsorship patterns.*