H-1B $100,000 Supplementary Fee Explained: Who Has to Pay, Exemptions for Change of Status, and What It Means for Your Petition

The $100,000 H-1B supplementary fee is a new per-petition payment imposed by Presidential Proclamation 10973, signed September 19, 2025, and effective September 21, 2025. Unlike standard H-1B filing fees set through regulation, this fee was created by executive action under presidential entry-restriction authority. It applies to new H-1B petitions filed for beneficiaries who are outside the United States or who require consular processing, but it does not apply to change-of-status petitions for workers already in the country. This guide covers who must pay, who is exempt, how payment logistics work, the fee's impact on H-1B petition strategy, and what employers and employees can expect heading into the FY 2027 H-1B cycle.

Key Takeaways

• The $100,000 fee applies to H-1B petitions filed on or after September 21, 2025 for beneficiaries outside the U.S. or requiring consular processing, per USCIS guidance
• Change-of-status petitions are exempt, meaning F-1 students, L-1 holders, and other nonimmigrants already in the U.S. who file for H-1B change of status do not pay the fee, provided USCIS approves the COS request
• No employer is exempt based on type or size: universities, nonprofits, government research organizations, startups, and small businesses all must pay if the petition triggers consular processing
• The fee applies to both cap-subject and cap-exempt petitions, covering all H-1B filings that involve entry from abroad
• Total government fees now exceed $103,000 per petition for offshore hires when combined with the base I-129 fee, ACWIA training fee, fraud prevention fee, and asylum program fee
• Three federal lawsuits are challenging the fee, with a D.C. Circuit appeal and a preliminary injunction hearing both expected in February 2026; no court has blocked the fee to date
• The proclamation includes a 12-month sunset, set to expire September 21, 2026, unless the administration extends it

What Is the $100,000 H-1B Supplementary Fee?

The $100,000 fee was established through Presidential Proclamation 10973, titled "Restriction on Entry of Certain Nonimmigrant Workers." The proclamation was published in the Federal Register on September 24, 2025, and took effect at 12:01 a.m. EDT on September 21, 2025. This gave employers roughly 36 hours of advance notice before the fee became mandatory.

The legal authority behind the proclamation comes from INA Section 212(f) (8 U.S.C. § 1182(f)), which authorizes the President to restrict the entry of noncitizens deemed detrimental to the interests of the United States, and INA Section 215(a) (8 U.S.C. § 1185(a)), which grants presidential authority over entry rules. The administration characterizes the $100,000 as a "payment to remove a restriction on entry" rather than a traditional filing fee. This distinction matters legally because congressional immigration fee statutes require fees to be tied to the actual cost of processing.

The stated justifications in the proclamation include alleged exploitation of the H-1B program by IT outsourcing firms, wage suppression, displacement of American workers, and national security concerns.

How the Fee Differs From Standard H-1B Filing Fees

Standard H-1B fees are established by USCIS through formal rulemaking with public notice and comment periods. These include the base I-129 filing fee ($780 for standard employers, $460 for small employers and nonprofits), the ACWIA training fee ($750 or $1,500 depending on employer size), the fraud prevention fee ($500), and the asylum program fee (up to $600). All standard fees flow to USCIS or designated federal programs.

The $100,000 supplementary fee bypassed this process entirely. It was not created through DHS rulemaking, was not subject to public comment, and was imposed with minimal advance notice. Payment is collected separately through Pay.gov using the form titled "H-1B Visa Payment to Remove Restriction," and proof of payment must accompany the I-129 petition at filing. Petitions submitted without valid proof of payment are denied by USCIS.

The 12-Month Sunset Provision

The proclamation includes a built-in expiration of approximately 12 months from its effective date, placing the sunset at September 21, 2026. Within 30 days of the first H-1B lottery conducted after the proclamation's effective date, four officials (the Secretary of State, the Attorney General, the Secretary of Labor, and the Secretary of Homeland Security) must submit recommendations to the President on whether to renew, modify, or let the fee expire. This means the FY 2027 lottery results (expected April 2026) will trigger this review process.

Who Must Pay the $100,000 Fee

The fee applies broadly. There is no carve-out based on employer type, employer size, industry, or the beneficiary's nationality. The determining factor is whether the petition requires the beneficiary to enter the United States from abroad.

Petitions That Trigger the Fee

The $100,000 payment is required when filing an H-1B petition (Form I-129) on or after September 21, 2025, if any of the following conditions are met:

• The beneficiary is outside the United States at the time of filing and does not currently hold a valid H-1B visa
• The petition requests consular notification, meaning the employer has indicated on the I-129 that the beneficiary will obtain the H-1B visa at a U.S. consulate abroad
• The petition requests port-of-entry notification or pre-flight inspection, regardless of whether the beneficiary is physically present in the U.S.
• USCIS approves the petition but denies the change-of-status request (a "split decision"), converting the approved petition to consular processing after the fact

Important: USCIS has clarified that if a petition is filed requesting change of status but USCIS denies the COS component while approving the underlying H-1B petition, the $100,000 fee becomes due at that point. This contingency is a relevant budgeting consideration for petitions where the beneficiary's status maintenance is uncertain.

Employer Types Subject to the Fee

Unlike the ACWIA training fee (which varies by employer size) or the asylum program fee (which is waived for nonprofits), the $100,000 fee makes no distinctions. Per USCIS guidance, the following employer types all must pay:

• Large technology companies and IT consulting firms filing for workers abroad
• Universities and academic institutions, including those that are otherwise cap-exempt for H-1B purposes
• Nonprofit research organizations and government research organizations, which are also otherwise cap-exempt
• Hospitals and healthcare systems recruiting physicians, nurses, and specialists internationally
• Startups and small businesses with as few as one employee
• Staffing companies and third-party placement firms filing on behalf of client companies

The fee applies equally to cap-subject petitions (those subject to the annual 85,000 H-1B cap, including the 20,000 advanced-degree exemption) and cap-exempt petitions (filed by qualifying universities, nonprofit research organizations, and government research entities).

Total Government Filing Costs for a New H-1B Petition

For employers hiring a worker from abroad, total government fees per petition now include:

Fee breakdown for a large employer (26 or more full-time equivalent employees) filing for an offshore candidate:

• Base I-129 filing fee: $780
• ACWIA training fee: $1,500
• Fraud prevention and detection fee: $500
• Asylum Program fee: $600
• Supplementary proclamation fee: $100,000
• Total before premium processing: $103,380
• With premium processing ($2,965 effective March 1, 2026): approximately $106,345

Fee breakdown for a small employer (25 or fewer full-time equivalent employees) filing for an offshore candidate:

• Base I-129 filing fee: $460
• ACWIA training fee: $750
• Fraud prevention and detection fee: $500
• Asylum Program fee: $300 (reduced rate for small employers)
• Supplementary proclamation fee: $100,000
• Total before premium processing: $102,010

By comparison, the same petition for a beneficiary already in the U.S. who qualifies for change of status costs approximately $2,010 to $6,345 in government fees (depending on employer size and whether premium processing is elected), since the $100,000 supplementary fee does not apply.

For context on how these costs compare to other visa categories and immigration pathways, see Alma's visa guides and pricing overview.

The Change-of-Status Exemption: The Most Critical Carve-Out

The single most important exemption benefits workers who are already physically present in the United States. USCIS confirmed in its October 2025 guidance that the fee does not apply to petitions where USCIS approves a change of status, extension of stay, or amendment of stay. This exemption has fundamentally reshaped employer hiring strategies for the FY 2027 H-1B cycle.

Which Petitions Are Exempt

The following petition types do not require the $100,000 payment:

• Change of status (COS): F-1 students (including those on OPT or STEM OPT), L-1 transferees, J-1 exchange visitors, TN professionals, B-1/B-2 visitors, O-1 visa holders, and other nonimmigrants already in the U.S. who file for H-1B status, provided USCIS approves the COS
• Extensions of stay: Current H-1B workers extending their status with the same employer
• Amendments: Petitions modifying job duties, worksite location, or other employment terms for beneficiaries who remain in the U.S.
• Employer transfers (portability): Change-of-employer petitions filed for beneficiaries currently in the U.S. in valid H-1B status, provided the petition does not request consular notification
• Post-approval reentry: Beneficiaries who receive an approved COS and later travel abroad and return on the same approval are not subject to the fee for that original petition

Why This Matters for F-1 Students and the FY 2027 Lottery

The change-of-status exemption is especially significant for F-1 students selected in the FY 2027 H-1B lottery (registration period March 4 through March 19, 2026). An F-1 student graduating from a U.S. institution who is selected in the lottery and whose employer files for change of status will not owe the $100,000 fee, provided the student remains in the U.S. and the COS is approved by USCIS.

According to practitioner estimates, a significant majority of first-time H-1B workers are graduates of U.S. institutions who qualify for this pathway. For employers, this means recruiting from U.S.-based talent pools (current students, OPT workers, and individuals already in other nonimmigrant status) avoids the $100,000 cost entirely.

Critical Risks That Can Trigger the Fee Even for U.S.-Based Workers

Even when a petition is filed as a change-of-status case, certain events can convert it to consular processing and trigger the $100,000 fee:

Risks to monitor:

• Departing the U.S. while the petition is pending: If the beneficiary leaves the country before USCIS adjudicates and approves the COS, the petition converts to consular notification and the fee becomes due
• Status gaps or violations: If USCIS determines the beneficiary was out of status at any point before filing, the COS request may be denied even if the underlying H-1B petition is approved, resulting in a split decision and triggering the fee
• Failure to maintain current nonimmigrant status: F-1 students who fail to maintain valid OPT employment or who let their STEM OPT expire before the H-1B start date may lose COS eligibility
• Employer errors on Form I-129: Accidentally checking the consular notification box instead of the change-of-status box on the I-129 form will subject the petition to the fee

Key point: Departing the U.S. before USCIS approval of a change-of-status petition converts the case to consular processing and triggers the $100,000 fee for the employer. Travel plans and immigration counsel coordination are important considerations during this window.

The National Interest Exception

The proclamation includes one narrow additional exemption pathway: the National Interest Exception (NIE). DHS may grant this exception in "extraordinarily rare circumstances" where four conditions are met simultaneously: (1) the worker's employment is in the national interest, (2) no qualified U.S. worker is available, (3) the worker poses no security risk, and (4) requiring the fee would significantly undermine U.S. interests.

Exception requests must be submitted to the DHS Secretary via email at H1BExceptions@hq.dhs.gov before filing the petition. No categorical exemptions have been formally issued as of February 2026, though the administration has publicly suggested that physicians serving underserved areas may qualify. This pathway remains exceptionally narrow and has not been relied upon widely in practice.

Impact on Employers: How the Fee Changes H-1B Hiring Strategy

The $100,000 supplementary fee has triggered a fundamental shift in how employers approach H-1B hiring. Understanding these dynamics helps both employers planning their workforce strategy and employees evaluating their options.

Offshore Hiring Has Become Cost-Prohibitive for Most Employers

Before the proclamation, hiring a qualified worker from abroad through the H-1B program cost approximately $2,010 to $6,185 in government fees (depending on employer size and premium processing). The $100,000 addition makes the total cost of a single offshore H-1B hire exceed what many mid-sized and small employers can justify, particularly for roles where multiple candidates may need sponsorship.

What this means for employers:

• Budget realignment: Companies must now allocate six-figure sums per offshore H-1B petition, fundamentally changing the cost-benefit analysis for international recruitment
• Prioritization of U.S.-based candidates: Employers are overwhelmingly shifting toward candidates already present in the U.S. who qualify for the change-of-status exemption
• Reduced offshore recruitment: Roles that previously targeted candidates abroad are being restructured to focus on domestic talent pools, remote arrangements in countries without entry requirements, or alternative visa categories

What this means for employees:

• Workers already in the U.S. hold a significant advantage: F-1/OPT holders, L-1 transferees, and others in valid nonimmigrant status are far more attractive H-1B candidates because sponsoring them does not trigger the $100,000 fee
• Workers abroad face reduced opportunities: Employers may choose to defer or cancel H-1B sponsorship for candidates who would require consular processing
• Maintaining U.S. status is critical: Employees currently in the U.S. benefit from preserving their nonimmigrant status and avoiding any gaps that could jeopardize change-of-status eligibility

Alternative Visa Strategies Employers Are Considering

Given the dramatically higher cost of H-1B sponsorship for offshore candidates, many employers are evaluating other visa pathways:

O-1A Visa (Extraordinary Ability): No annual cap, no lottery, and not subject to the $100,000 fee. Requires demonstrating extraordinary ability in sciences, business, education, or athletics. Typically suited for senior-level or highly accomplished professionals.

L-1 Visa (Intracompany Transfer): Allows multinational companies to transfer executives, managers, or specialized knowledge employees from foreign offices. Not subject to the $100,000 fee. Requires at least one continuous year of employment with the company abroad within the preceding three years.

TN Visa (USMCA Professionals): Available to Canadian and Mexican citizens in designated professional occupations. No cap, no lottery, no supplementary fee. Significantly lower cost and faster processing.

EB-2 NIW (Green Card): For employees who qualify, pursuing a green card directly through the National Interest Waiver bypasses H-1B entirely. Self-petitioning means no employer dependency, and the EB-2 NIW process does not involve the $100,000 supplementary fee.

EB-2 PERM / EB-3 (Employer-Sponsored Green Card): Some employers are accelerating PERM labor certification processes to move employees off H-1B status entirely. According to DOL processing data, PERM processing times currently average approximately 16 months or more for non-audited cases, but employers with long-term workforce plans may prefer this path despite the wait.

Alma helps employers and employees identify the strongest visa strategy for their situation. Whether exploring H-1B alternatives, considering a green card pathway, or seeking clarity on the $100,000 fee's impact on a specific case, Alma's experienced attorneys provide tailored analysis.

Impact on the FY 2027 H-1B Lottery

The FY 2027 H-1B cap registration window runs from March 4 through March 19, 2026, per USCIS. The $100,000 fee is expected to significantly affect registration volume and employer behavior for this cycle.

Key changes for FY 2027:

• Registration fee: $215 per beneficiary (unchanged from FY 2026)
• New wage-weighted selection process: Effective February 27, 2026, USCIS will use a wage-based weighted lottery that prioritizes higher-paying positions. Registrations for positions at DOL Wage Level III and IV will have higher selection probability than Level I and II positions.
• Potential registration decline: Some immigration analysts anticipate a decrease from FY 2026's approximately 344,000 registrations, driven largely by the supplementary fee deterring offshore-focused employers, though official FY 2027 registration figures will not be available until after the registration window closes
• The $100,000 fee is NOT paid at registration: Employers register at $215 per beneficiary. The supplementary fee is only due when filing the actual I-129 petition after selection, and only if the petition requires consular processing

Timing consideration: Because the D.C. Circuit appeal and a separate preliminary injunction hearing are both expected to produce rulings in February or March 2026, some employers may register candidates speculatively, knowing the fee could potentially be struck down before petitions must be filed. However, there is no guarantee of judicial relief, and the fee remains in effect as of this writing.

Current Legal Challenges to the $100,000 Fee

Three federal lawsuits are challenging the constitutionality and legality of the fee. As of February 2026, no court has issued an injunction or stay. The fee remains fully in effect and is being actively collected by USCIS.

Chamber of Commerce v. DHS (D.C. District Court / D.C. Circuit)

Filed October 16, 2025, by the U.S. Chamber of Commerce and the Association of American Universities. On December 23, 2025, Judge Beryl Howell denied the plaintiffs' motion for summary judgment and granted the government's cross-motion for summary judgment, holding that the proclamation falls within the President's broad authority under INA § 212(f). The Chamber appealed on December 29, 2025. The D.C. Circuit agreed to fast-track the appeal, with briefing concluded in early February 2026. Oral arguments are expected this month, and a ruling could arrive before the March 4 registration window opens.

Global Nurse Force v. Trump (N.D. California)

Filed October 3, 2025, backed by nurse recruiters, universities, labor unions, and individual workers. A preliminary injunction hearing is scheduled for February 19, 2026. If the court grants the injunction, this would be the first judicial order blocking the fee. The case focuses heavily on the fee's impact on healthcare employers who must recruit internationally to fill critical nursing and physician shortages.

State Attorneys General Lawsuit (D. Massachusetts)

Filed December 12, 2025, by 20 state attorneys general led by California and Massachusetts. The complaint argues the proclamation exceeds presidential authority, violates the Administrative Procedure Act's notice-and-comment requirements, and disproportionately harms public universities, state hospitals, and government research institutions that rely on international talent. This case is in its early stages with no ruling yet.

Core legal arguments across all three cases:

• Exceeds presidential authority: The power to "restrict" entry under § 212(f) does not include the power to impose fees or conditions on entry
• Violates the APA: The proclamation bypassed required notice-and-comment rulemaking
• Constitutes an unlawful tax: Only Congress has the power to impose taxes, and a $100,000 charge that far exceeds processing costs functions as a tax rather than a fee
• Usurps congressional authority over immigration fees: Congress has established a comprehensive fee framework for immigration petitions; the President cannot impose additional fees outside that framework

The government argues that § 212(f) grants virtually unlimited presidential discretion, citing the Supreme Court's 2018 decision in Trump v. Hawaii, and that the $100,000 is a condition on entry rather than a fee subject to APA requirements.

Court rulings in February and March 2026 could fundamentally change the fee landscape before FY 2027 petitions are filed. Relevant updates are available through USCIS alerts. Alma's platform provides real-time updates to clients on regulatory and litigation developments affecting their cases.

How to Handle the $100,000 Payment: Step-by-Step

For employers whose petitions require the supplementary fee, the payment process is separate from the standard USCIS filing fee payment. Here is what the process involves.

Payment Process

1. Before filing the I-129 petition, the employer (or authorized representative) must submit the $100,000 payment through Pay.gov using the designated form titled "H-1B Visa Payment to Remove Restriction"
2. Pay.gov generates a payment confirmation receipt upon successful transaction
3. The payment receipt must be included with the I-129 petition package when filed with USCIS
4. USCIS will deny any petition that does not include valid proof of payment (unless the petition qualifies for an exemption or has an approved DHS exception)

What Employers Need to Know About Payment

Timing: The fee is paid at the petition-filing stage, not at registration. Employers participating in the H-1B lottery pay only the $215 registration fee initially. The $100,000 becomes due only after a beneficiary is selected in the lottery and the employer proceeds with filing the actual I-129 petition, and only if the petition requires consular processing.

Who pays: The employer bears responsibility for the fee. Under existing H-1B regulations, employers cannot pass H-1B petition costs to the beneficiary. However, no specific guidance has been issued on whether the $100,000 proclamation fee falls under the same prohibition, since it is technically a "payment to remove a restriction on entry" rather than a petition filing fee. The applicability of the existing prohibition to this specific fee remains an open question.

Refundability: As of February 2026, USCIS has not issued guidance on whether the $100,000 is refundable if the underlying petition is denied, withdrawn, or revoked. This creates significant financial risk. If USCIS denies the petition after payment, the employer may lose the entire $100,000 with no recourse.

Accounting treatment: Because the fee is structured as a "payment to remove a restriction" rather than a government filing fee, the proper classification for financial reporting purposes may vary depending on the employer's accounting framework.

What Employees Need to Know

• Existing regulations prohibit employers from shifting H-1B petition costs to employees. While the legal status of this particular fee under that prohibition is still being clarified, the general regulatory framework treats H-1B petition costs as employer obligations.
• Employees in the U.S. who maintain valid nonimmigrant status and whose employers file for change of status (not consular processing) are not subject to the fee. Remaining in the U.S. while the petition is pending preserves the COS exemption.
• The petition filing type matters. Whether a petition is filed as a COS or as consular notification determines whether the fee applies, making it an important detail for employees to understand in the context of their own cases.
• Other visa categories exist. If an employer is unable to proceed with H-1B sponsorship due to the fee, other visa categories such as the O-1A or a direct green card route may be worth exploring.

Why Work With Alma on Your H-1B or Alternative Visa Strategy

See how Alma has helped professionals and employers with complex immigration cases in our case studies.

The $100,000 supplementary fee has made H-1B planning significantly more complex. Employers face new cost-benefit calculations for every international hire, and employees need to understand how their immigration status, physical location, and petition type affect whether the fee applies. The stakes of getting any of these details wrong are now six figures higher than before.

Alma's immigration platform combines experienced attorneys with technology-driven case management to help employers and employees make informed decisions in this new environment.

The Alma difference in practice:

Strategic visa assessment: Alma attorneys evaluate whether the H-1B remains the right path or whether alternatives like the O-1A, L-1, EB-2 NIW, or TN visa offer a better fit. This assessment considers the $100,000 fee, employer budget, the employee's current status, and long-term green card goals.

Fee exemption analysis: For each petition, Alma attorneys confirm whether the change-of-status exemption applies and identify any risks (status gaps, travel plans, form errors) that could inadvertently trigger the fee. This analysis prevents the most common and most expensive mistakes.

Real-time regulatory monitoring: With three active lawsuits and potential court rulings expected before the FY 2027 filing deadline, staying current on legal developments is critical. Alma's platform provides clients with real-time case updates and proactive guidance when the rules change.

Technology-enabled efficiency: Alma's proprietary platform automates document organization, deadline tracking, and form population. This means faster turnaround, fewer errors, and direct attorney access throughout the process.

For businesses managing multiple H-1B petitions, Alma's enterprise solutions provide portfolio-level strategy, helping companies optimize which candidates to sponsor through H-1B versus alternative pathways, and how to structure petitions to minimize supplementary fee exposure.

Schedule a consultation to discuss your H-1B strategy with an experienced Alma attorney.

Frequently Asked Questions

Does the $100,000 fee apply to H-1B extensions and transfers?

It depends on how the petition is filed. Extensions of stay and employer transfers for beneficiaries who remain in the United States and whose petitions are filed as change-of-status or extension-of-stay requests are not subject to the fee, per USCIS. However, if the extension or transfer petition requests consular notification (for example, because the employee plans to travel abroad and reenter on a new visa stamp), the fee applies. Accurate completion of Form I-129 to reflect change-of-status or extension-of-stay rather than consular notification is essential whenever the beneficiary is in the U.S. and eligible.

Is the $100,000 fee refundable if my H-1B petition is denied?

As of February 2026, USCIS has not published specific refund guidance for the supplementary fee. This is a significant concern raised by multiple legal commentators and employer groups. Under standard USCIS fee rules, base filing fees are generally not refunded upon denial. Because the $100,000 is structured as a "payment to remove a restriction on entry" rather than a standard filing fee, its refundability status is uncertain. Many employers are treating the payment as non-refundable for budgeting purposes.

Can my employer require me to pay or reimburse the $100,000 fee?

Existing USCIS regulations prohibit employers from requiring H-1B beneficiaries to pay or reimburse the employer for H-1B petition filing costs. While the $100,000 supplementary fee is technically classified as a "payment to remove a restriction on entry" rather than a filing fee, no guidance has been issued exempting it from the standard prohibition. For comprehensive information on H-1B employee rights, see Alma's H-1B visa guide.

I'm an F-1 student on OPT. Will my employer need to pay the $100,000 fee when filing my H-1B?

If the student is physically in the United States, maintaining valid F-1/OPT status, and the employer files the H-1B petition requesting change of status, the $100,000 fee does not apply, provided USCIS approves the COS. The critical requirement is that the student remains in the U.S. while the petition is pending and that USCIS grants the change of status. If the student departs the U.S. before the petition is approved, the case may convert to consular processing and trigger the fee. Remaining in the country from the time the petition is filed through the H-1B start date (October 1 for cap-subject cases) is the key factor in preserving the exemption.

Are there any employer types that are fully exempt from the $100,000 fee?

No. Unlike certain other H-1B fees that are reduced or waived for specific employer categories (such as the reduced ACWIA training fee for small employers or the waived asylum program fee for nonprofits), the $100,000 supplementary fee applies uniformly. Universities, nonprofit organizations, government research organizations, small businesses, startups, and large corporations are all subject to the fee if the petition triggers consular processing. The only reliable exemption is for petitions filed as change of status, extension of stay, or amendment for beneficiaries already in the United States.