Explained: How F-1 students can switch to H-1B status without paying the $100,000 fee
The government introduced a $100,000 fee for H-1B through a presidential proclamation on September 19, 2025. The fee applies to new H-1B petitions filed on or after September 21, 2025, for individuals outside the United States who do not hold a valid . The objective of this fee is to regulate access to the H-1B program, which allows employers to hire skilled foreign workers in technology, engineering, and other high-demand sectors.
Following the announcement, the US Citizenship and Immigration Services (USCIS) issued guidance clarifying which applicants are required to pay the fee. The agency stated that the fee does not apply to individuals already in valid non-immigrant status in the United States, including students on F-1 visas, professionals on L-1 intra-company transfer visas, and current H-1B visa holders. This exemption applies when applying for a change of status to H-1B or renewing an existing H-1B visa. The guidance provides relief to international students and other visa holders concerned about the cost and accessibility of employment-based visas.
Employers who hire foreign workers from outside the country are required to pay the fee unless they qualify for a rare waiver. Waivers are available only when the position is considered essential to the national interest, no qualified US worker is available to fill the role, and paying the fee would significantly affect US interests. USCIS approval for these waivers is expected to be extremely limited, and most new applicants from outside the United States will have to pay.
The policy does not apply to those already employed in the United States who are extending their H-1B status or changing from another category, such as F-1 to H-1B. This ensures that the rule primarily impacts new overseas petitions, not international graduates or professionals already part of the US workforce.
The exemption also covers students on STEM OPT extensions. These extensions allow graduates in science, technology, engineering, and mathematics to continue working in the US for up to three years after completing their studies.
While the H-1B petition is being processed, students on F-1 status can keep working if they are on OPT or STEM OPT. This makes it easier to transition smoothly from student life to professional work. They do not have to leave the US or pay the new fee just because they are switching from F-1 to H-1B.
This rule helps students plan their careers without worrying about unexpected costs. Universities and employers also benefit. They can hire skilled graduates without additional financial burdens. For students, it means you can focus on building your career, gaining experience, and staying in the US legally while your work visa is processed
Employers, particularly in technology and research sectors, also stand to benefit by hiring from within the US talent pool without incurring additional costs. The USCIS policy ensures that the $100,000 fee primarily targets new foreign applicants, not graduates or professionals already integrated into the US education and employment system.
By protecting current students and workers from the added expense, the exemption helps sustain the country’s pipeline of skilled international talent while maintaining oversight of overseas petitions.
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Who will actually pay the $100,000 fee
USCIS has made it clear that the $100,000 fee targets new applicants abroad. It applies to new H-1B petitions filed by individuals outside the United States. Applicants who are already in the country on valid F-1, L-1, or H-1B visas are exempt when filing a petition for a change of status within the United States.Employers who hire foreign workers from outside the country are required to pay the fee unless they qualify for a rare waiver. Waivers are available only when the position is considered essential to the national interest, no qualified US worker is available to fill the role, and paying the fee would significantly affect US interests. USCIS approval for these waivers is expected to be extremely limited, and most new applicants from outside the United States will have to pay.
The policy does not apply to those already employed in the United States who are extending their H-1B status or changing from another category, such as F-1 to H-1B. This ensures that the rule primarily impacts new overseas petitions, not international graduates or professionals already part of the US workforce.
Why F-1 students in the US are exempt
Students in the United States on F-1 visas, whether finishing their degrees or working on Optional Practical Training (OPT), can apply for an H-1B through the change-of-status process without paying the $100,000 fee. This means that one can move from being a student to a professional worker without facing the new cost.While the H-1B petition is being processed, students on F-1 status can keep working if they are on OPT or STEM OPT. This makes it easier to transition smoothly from student life to professional work. They do not have to leave the US or pay the new fee just because they are switching from F-1 to H-1B.
This rule helps students plan their careers without worrying about unexpected costs. Universities and employers also benefit. They can hire skilled graduates without additional financial burdens. For students, it means you can focus on building your career, gaining experience, and staying in the US legally while your work visa is processed
When the fee could still affect F-1 students
There are certain cases in which F-1 students might still be required to pay the $100,000 fee. These include:- Leaving the United States before the H-1B petition is adjudicated.
- Filing a petition that USCIS later finds ineligible for change of status.
- Applying for an H-1B visa from outside the United States after losing valid F-1 status.
How students on F-1 visa can benefit
The exemption offers a very strong financial and career advantage to international students in the US. Those with an F-1 status can transition smoothly into the US workforce under H-1B without paying the new fee. Moreover, students on OPT or STEM OPT can continue their employment while their H-1B petition is processed.Employers, particularly in technology and research sectors, also stand to benefit by hiring from within the US talent pool without incurring additional costs. The USCIS policy ensures that the $100,000 fee primarily targets new foreign applicants, not graduates or professionals already integrated into the US education and employment system.
By protecting current students and workers from the added expense, the exemption helps sustain the country’s pipeline of skilled international talent while maintaining oversight of overseas petitions.
The takeaway
F-1 students already in the US can keep their career plans on track without being affected by the new H-1B fee. By keeping their F-1 status valid and applying for a change to H-1B, they can start working without paying extra. The USCIS guidance makes clear that the $100,000 fee mainly applies to new applicants from outside the US Students and professionals in the country can continue their jobs and career paths. Staying on top of visa rules is important to make sure they stay eligible for the exemption.Ready to navigate global policies? Secure your overseas future. Get expert guidance now!
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