The U.S. Citizenship and Immigration Services (USCIS) has begun issuing formal requests demanding the $100k H-1B fee. The move has sparked concerns across the technology sector, immigration law circles, and among professionals. It marks a major policy shift that could redefine skilled immigration and hiring strategies for American employers and global tech firms.
$100k H-1B fee Imposition and Background
A presidential proclamation issued in September 2025 introduced a mandatory $100k H-1B fee for non-immigrant workers entering the U.S. under the H-1B visa category. The order stated that employers must pay the new fee alongside each qualifying petition, and entry could be restricted for those whose sponsors fail to comply.
The fee requirement officially took effect for filings made after September 21, 2025. This move, framed as a measure to “protect American jobs,” drastically raised the cost of H-1B sponsorship and created widespread confusion among employers about which cases fall under the new rule.
The Demand for the $100K H-1B Fee
USCIS has now started sending Requests for Evidence (RFEs) to employers, demanding payment of the $100k H-1B fee. These demands have reportedly appeared in a wide range of cases, including situations where the rule’s applicability remains unclear.
Employers filing petitions for “recapture time” are now also receiving $100k H-1B fee demands. These petitions usually involve workers trying to reclaim unused days spent outside the U.S. within their six-year limit. However, immigration attorneys warn that the implementation remains unclear. As a result, the process could produce inconsistent decisions and lead to legal challenges in the coming months.
Experts say the broad interpretation of the rule is forcing companies to either pay the fee preemptively or risk delays and denials.
Why The $100K H-1B Fee
The $100k H-1B fee significantly changes the economics of employing foreign specialists. Before the change, total application costs typically ranged between $2,500 and $6,000 per worker, depending on employer size. The new requirement multiplies that cost many times over, deterring small and mid-sized firms from sponsoring global talent.
Technology firms, outsourcing companies, and startups that depend on Indian-origin engineers will likely face the hardest hit. Roughly 70 percent of all H-1B visa holders are Indian nationals, meaning the ripple effects will heavily impact Indian tech ecosystems and cross-border hiring models.
Legal Uncertainty and Employer Risk
The legal framework surrounding the $100k H-1B fee remains unclear. The proclamation’s wording merges “visa” and “status,” creating confusion for employers and applicants. As a result, no one is certain whether the rule applies to individuals already in the U.S. or only to new entrants.
Immigration lawyers also argue that shifting the entire cost burden onto employers may violate the Immigration and Nationality Act. Furthermore, the U.S. Chamber of Commerce has filed a lawsuit challenging the legality of the $100k H-1B fee. It argues that the executive branch lacks authority to impose such a large surcharge without congressional approval.
Now, employers face a difficult choice. They can pay a potentially unlawful fee to prevent processing delays, or resist payment and risk denial. Consequently, legal experts expect a surge of appeals and lawsuits as affected companies push back against what many call an “unlawful levy.”
Strategic Shifts by Employers
The enforcement of the $100k H-1B fee is already changing how companies plan their workforce strategies. Many firms are delaying new H-1B applications to reassess costs and risks. Meanwhile, others are redirecting roles to countries such as Canada, Ireland, and Singapore. These destinations offer more predictable immigration systems and lower compliance costs.
Additionally, companies that rely heavily on skilled Indian workers are adjusting their strategies. Some are investing in training American employees to fill critical roles. Others are exploring automation to reduce dependency on international hires. In some cases, H-1B employees are being advised to avoid international travel. This helps them prevent possible re-entry issues linked to the $100k H-1B fee.
Over time, analysts warn these shifts could harm the U.S. economy. America’s reputation as a top destination for global tech talent may weaken. As a result, its long-term innovation and competitiveness could face serious challenges.
Key Questions and Areas of Confusion
Many uncertainties still surround how the $100k H-1B fee will be enforced. Among the most pressing are:
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Whether the fee applies only to first-time visa applicants or also to extensions and amendments.
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If H-1B holders already living in the U.S. are exempt from the new payment.
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How the term “entry” will be interpreted; does it cover visa stamping abroad, status transfers, or both?
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Whether dependent family members, such as H-4 visa holders, will face related charges.
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If employers who pay the fee now might later qualify for refunds should courts strike down the rule.
Until USCIS issues clear written guidance or a court decision provides direction, both employers and employees must navigate uncertainty.
What Applicants and Sponsors Should Do
With the $100k H-1B fee now central to visa processing, both employers and applicants must act carefully. Companies are advised to:
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Review every pending and new petition to determine whether the fee applies.
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Respond promptly to RFEs, providing documentation and legal reasoning if the fee does not apply.
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Keep detailed records of filing dates, payments, and communication with USCIS to support potential appeals.
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Consult immigration counsel before making payments or challenging fee demands.
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Explore alternate visa options, such as L-1 or O-1 categories, for specialized employees.
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Monitor policy updates closely to avoid lapses that could lead to petition denials or work disruptions.
For applicants, transparency with employers and timely communication are crucial. Skilled professionals should prepare for possible delays in visa approvals and consider remote or hybrid work arrangements while cases remain pending.
Broader Economic and Political Implications
The introduction of the $100k H-1B fee is being interpreted as part of a broader protectionist push in U.S. labor policy. Supporters claim it will reduce dependency on foreign labor and open more opportunities for American workers. Critics counter that it could backfire by driving skilled professionals to competing economies.
Countries like Canada, Australia, and the United Kingdom already offer streamlined tech-talent visas with lower costs. A long-term enforcement of the H-1B surcharge could accelerate migration of global innovation hubs away from Silicon Valley, reducing U.S. competitiveness in sectors such as AI, cloud computing, and software development.
Conclusion
The enforcement of the $100k H-1B fee represents one of the most significant shifts in U.S. skilled immigration in decades. For Indian tech professionals and American employers alike, it introduces both financial strain and legal uncertainty.
While the government insists the measure protects domestic employment, the private sector views it as a blow to global collaboration and economic growth. Ongoing litigation and diplomatic dialogue will determine whether the policy stands, is modified, or eventually repealed.
Until then, businesses will continue to adapt hiring models, reconfigure budgets, and weigh the cost of maintaining a U.S. presence for their foreign workforce. The world’s top destination for innovation now faces a serious question: can it remain competitive while imposing a $100k H-1B fee on the very talent that fuels its economy?
Maple Crest Immigration Law Firm
If you or your employer have received a demand for the $100k H-1B fee, don’t face it alone. Maple Crest Immigration Law Firm provides expert legal guidance to protect your status, challenge improper USCIS requests, and ensure your rights are upheld. Contact us today for a confidential consultation and get trusted representation from attorneys who understand complex U.S. immigration policy.
