Good news for thousands of Indian students in the U.S.! The U.S. Citizenship and Immigration Services (USCIS) has issued new guidance confirming that the controversial $100,000 H-1B fee does not apply to F-1 visa holders transitioning to H-1B status. That’s a big sigh of relief for international students, especially from India, who feared extra financial burdens while starting their careers in the U.S.
What Is the $100,000 H-1B Fee All About?
This steep new fee was introduced as part of the Emergency National Security Supplemental Appropriations Act, 2024, and it applies to companies heavily reliant on foreign talent. Specifically, firms that have:
- More than 50 employees
- Over 50% of their workforce on H-1B or L-1 visas
The purpose? To discourage over-reliance on foreign workers and promote domestic hiring. However, the law left many scratching their heads about who exactly would need to pay it — especially in cases where students move from an F-1 visa (student) to H-1B (work) status.
F-1 to H-1B Status Changes Now Exempt
USCIS has cleared the air — if you're an F-1 visa holder shifting to H-1B through the cap-subject lottery, your employer won’t be charged the $100,000 fee. Why? Because the fee only applies to companies that are filing H-1B petitions for new employees, not for changing a student's status.
“Employers filing H-1B petitions on behalf of F-1 visa holders changing status are not subject to the new $100,000 fee.” – Forbes, Oct 20, 2025
Why Indian Students Were Especially Concerned
Indian nationals represent the largest share of F-1 visa holders in U.S. graduate STEM programs. The transition from student to skilled worker through the H-1B visa is a critical path. Had the $100K fee applied, it could’ve severely impacted their job prospects and employer willingness to hire.
With this update, both employers and students can breathe easy. The exemption removes a major cost concern and keeps the doors open for STEM talent.
Who Does Have to Pay the $100,000 Fee?
Here’s who’s still on the hook:
- Large outsourcing firms with 50+ employees and 50%+ workforce on H-1B or L-1
- Companies filing initial H-1B petitions for new hires, not status changes
- Petitions submitted after October 20, 2025
The idea is to place the burden on companies exploiting the visa system, not those helping skilled graduates integrate into the U.S. workforce.
How This Impacts Employers
This clarification helps employers better navigate hiring decisions without surprise costs. Especially for startups and mid-sized companies hiring fresh graduates, this fee exemption could mean the difference between offering or withdrawing a job offer.
What Should F-1 Students Do Now?
If you’re an international student looking to stay in the U.S. post-graduation, here’s what you need to know:
- Your employer does not have to pay the $100K fee when sponsoring your H-1B from F-1
- You’re still subject to the regular H-1B lottery process
- Keep track of all immigration announcements on the USCIS website
FAQs About the $100K H-1B Fee
💡 Does the $100,000 fee apply to all H-1B visa petitions?
No. It only applies to certain employers (50+ staff and 50%+ on H-1B/L-1) submitting new, initial H-1B petitions.
💡 Is this fee permanent?
It’s part of the 2024 appropriations act and could be reviewed in future legislation. For now, it’s effective immediately for qualifying employers.
💡 Do students on OPT need to worry?
Not directly. OPT students can still work post-grad, and if sponsored for H-1B, their employers won’t pay the $100K fee — unless they fall into the specific “large employer” category.
Wrapping It Up
While the $100,000 fee is real and here to stay (at least for now), most Indian students moving from F-1 to H-1B can relax. USCIS’s guidance makes it crystal clear: you’re exempt. That’s a big win for immigrant talent and a nod toward keeping the U.S. competitive in tech and innovation.
Stay tuned for more updates on immigration policy, and if you're planning your transition from student to professional, now might just be the perfect time to get moving.
Sources:
Times of India – USCIS Exempts F-1 to H-1B
Forbes – Who Pays The $100,000 H-1B Fee?
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