USCIS has released detailed guidance explaining the one-time $100,000 fee for certain H-1B visa petitions filed on or after September 21, 2025. While the fee was first announced in September, confusion surrounded who must pay and how it could affect the already-complex H-1B process.

The new memo clarifies that the surcharge applies mainly to new petitions for workers outside the United States, while most H-1B holders and F-1 students already in the country are exempt.

However, when combined with the Trump administration’s plan to shift the H-1B lottery toward a salary-based selection system, the fee could significantly alter how companies recruit global talent—and could increase the odds for U.S.-based applicants.

What the USCIS Memo Says

• The $100,000 fee applies to new H-1B petitions for beneficiaries outside the U.S. who do not already hold valid H-1B status.
• The fee is not annual — it is a one-time surcharge per new petition.
• Change-of-status filings for applicants already in the U.S. (for example, from F-1 OPT or L-1 to H-1B) are expected to be exempt.
• H-1B extensions and transfers for workers already in H-1B status are not subject to the fee.
• The rule applies to petitions filed on or after September 21, 2025.

Interaction with the Upcoming Salary-Based Lottery

The Trump administration has announced its intention to replace the random H-1B lottery with a salary-ranking system, giving preference to higher-wage petitions.

Together, these two changes — salary ranking and the overseas fee — could produce a double-filtering effect:

1. Employers may deprioritize overseas hiring due to the new cost.
2. Among remaining petitions, higher-salary domestic filings (for example, U.S.-based F-1 STEM OPT candidates) may be favored.

This combination could tilt the playing field toward applicants already working in the U.S. or earning U.S.-market salaries.

Data Insight: Who Is Affected

According to Table 14 of the USCIS Characteristics of H-1B Specialty Occupation Workers, Fiscal Year 2024 report:

• 141,205 petitions were approved for initial employment.
• 65,171 (46.2%) were for consular processing outside the United States.
• 76,034 (53.8%) were change-of-status or extensions processed inside the U.S.

Source: USCIS, CLAIMS 3 and ELIS, accessed November 2024.

This means nearly half of all new H-1B petitions may involve overseas beneficiaries—and thus be subject to the $100K fee.

If that portion declines substantially, the lottery odds will shift: U.S.-based candidates such as F-1 students on OPT/STEM OPT or L-1/H-1B holders seeking change of status could see a meaningful improvement in selection rates.

Potential Impacts

For Students and Workers Already in the U.S.

• The fee does not apply to change-of-status filings from F-1, L-1, or H-1B.
• Employers may increasingly prefer to sponsor U.S.-based candidates due to lower cost and simplicity.
• Combined with salary-based selection, this could significantly increase lottery success rates for qualified U.S.-based applicants.

For Employers Sponsoring Overseas Candidates

• Each new offshore H-1B filing now costs $100K in addition to standard filing fees.
• Many employers will reduce or eliminate entry-level overseas H-1B recruitment.
• Global firms may reassign foreign hires to affiliate offices abroad instead of petitioning directly for U.S. entry.

For the Broader Labor Market

• The policy will likely deepen the divide between domestic status-holders and offshore applicants.
• It may unintentionally favor international graduates of U.S. universities who can transition internally.
• Over time, it could reduce visa diversity while raising average wages for remaining petitions.

What Employers and Applicants Should Do

• Employers: Reevaluate 2026 H-1B planning and focus on fee-exempt U.S. talent (F-1, L-1, H-1B transfers).
• Students & U.S. workers: Keep status valid and prepare for change-of-status filings next cycle.
• Overseas applicants: Expect fewer sponsorship opportunities and consider L-1, O-1, or remote roles as alternatives.
• Legal teams: Monitor final salary-ranking rulemaking before the March 2026 registration period.

Sources

• USCIS: H-1B Visa Filing Fee Guidance (Oct 2025)
• Forbes: Who Pays the $100,000 H-1B Fee (Oct 20, 2025)
• Murthy Law: USCIS Clarifies Who Will Be Subject to the $100,000 H-1B Fee (Oct 20, 2025)
• USCIS: Characteristics of H-1B Specialty Occupation Workers, FY 2024 (PDF)