The $100,000 H-1B Fee Extended to 2027: Why It's Still Blocked and What International Students Should Do

Overview

In September 2025, a presidential proclamation added a $100,000 payment to certain new H-1B petitions. A year later the policy has been narrowed, struck down by a court, and extended anyway. At the same time, the H-1B lottery itself changed from a pure random draw to a wage-weighted system.

If you are an international student on F-1 or OPT hoping to move to H-1B, or a professional abroad hoping to be sponsored, this guide explains where things stand as of late September 2026.

What the $100,000 Fee Covers (and What It Doesn't)

The fee was never as broad as the early headlines suggested. According to USCIS guidance, it applies to new H-1B petitions filed at or after 12:01 a.m. Eastern on September 21, 2025 for beneficiaries who are outside the United States and do not hold a valid H-1B visa. The employer pays it through the US Treasury's pay.gov website.

The most important exemption for students: it does not apply to petitions requesting an amendment, change of status, or extension of stay for someone already inside the US, as long as that request is granted. That covers the classic F-1 or OPT student switching to H-1B. Because most first-time H-1B petitions in each lottery are for students, the fee affects far fewer cases than its wording first suggested.

The Travel Trap F-1 Students Must Avoid

The exemption depends on the change of status actually being granted. If USCIS decides the person is not eligible for a change of status, for example because they are out of status or they left the US before the request was decided, the proclamation applies and the payment becomes due.

After approval, travel is safe. No fee is required when someone whose change of status or extension was approved later travels abroad for an H-1B visa stamp or re-enters on a valid H-1B visa.

The rule is simple: once your employer files your change of status, do not leave the US until USCIS approves it.

The Court Ruling: Why No One Is Paying Right Now

In June 2026, a federal judge in Massachusetts struck down the government's guidance for implementing the fee, and the administration appealed. The government asked a higher court to pause that ruling during the appeal, and the request was denied, so the decision remains in effect.

The September 2026 Extension

The original proclamation was written to last 12 months. On September 18, 2026, President Trump extended the payment requirement for another year, through September 21, 2027, with limited exceptions for workers, companies, or industries considered to be in the national interest.

Immigration lawyers read the extension as keeping the policy alive without making it enforceable. The extension keeps the fee on paper but does not appear to override the court's ruling, so employers are not currently required to pay it when filing H-1B petitions.

Two more developments came the same week. A separate September 18 executive order calls for more interagency coordination and closer attention to employer layoffs in H-1B decisions, and DHS has proposed a separate regulatory fee for cap-subject petitions. Expect more scrutiny of sponsoring employers even while the $100,000 payment itself is blocked.

The New Wage-Weighted H-1B Lottery

This change affects students more directly than the fee does. Congress authorises 85,000 H-1B visas per fiscal year, allocated through an annual lottery, while universities and certain nonprofits are exempt from the lottery. For the FY2027 season, the lottery stopped being purely random.

The final rule was published on December 29, 2025 and took effect on February 27, 2026. Instead of one equal chance per person, registrations now receive entries based on the Department of Labor wage level: Level I gets one entry, rising to four entries at Level IV.

The effect on odds is large. DHS estimated that a beneficiary at Level IV would have a selection chance above 61 percent, and at Level III above 45 percent. Level I, where most new graduates sit, dropped sharply.

Rules that trip people up:

1. If several employers register the same person, USCIS assigns that person the lowest wage level among the registrations.
2. Key job details given at registration, including employer, occupation code, duties, work location, offered wage, and wage level, must stay consistent through the petition. Material changes can lead to denial or revocation.
3. Employers pay a $215 registration fee per beneficiary, and since April 1, 2026 a new version of Form I-129 is mandatory for cap petitions.

What This Means for International Students

Change of status is now valuable. Because in-country change of status sits outside the fee, US-educated graduates on OPT are cheaper to sponsor than workers abroad.

STEM OPT gives you more lottery attempts. The 24-month STEM extension can give you up to three lottery seasons instead of one. See our STEM OPT extension guide and our OPT and CPT explainer.

Salary negotiation now affects your odds. A job offer at Level II instead of Level I doubles your entries. When you negotiate, ask how the role is classified.

Cap-exempt employers are a real alternative. Universities, affiliated nonprofits, and research organisations are outside the lottery entirely. Our H-1B lottery guide explains the cap system in more detail.

Common Mistakes

1. Travelling abroad while an F-1 to H-1B change of status is pending.
2. Assuming the $100,000 fee applies to every H-1B case. It was always aimed at workers outside the US.
3. Assuming the September 2026 extension means the fee is being collected. It is still blocked by the court.
4. Having multiple employers register you at different wage levels, which puts you at the lowest level.
5. Ignoring cap-exempt employers, who do not face the lottery at all.

FAQ

Do I have to pay the $100,000 as an F-1 student?

No. The fee is paid by employers, and in-country changes of status that are granted fall outside its scope. It is also currently blocked by a federal court.

Is the $100,000 fee being collected now?

As of late September 2026, the fee remains blocked by the court and employers are not currently required to pay it, despite the extension.

How long does the extension last?

Through September 21, 2027, unless it is changed or overturned.

Does the weighted lottery hurt new graduates?

It lowers the odds for Level I positions. STEM OPT's extra lottery seasons and cap-exempt employers help offset that.

Can my employer register me at a higher wage level to improve my odds?

Only if the actual offered wage meets that level. Registration details must match the later petition, and inflating them can lead to denial.

Practical Tips

1. Once your change of status is filed, stay in the US until it is approved.
2. Ask employers early which OEWS wage level your role will be registered at.
3. Plan around multiple lottery seasons if you qualify for STEM OPT.
4. Add universities and research nonprofits to your job search.
5. Check the USCIS H-1B page before every registration season, because the rules have changed every year recently.

This is general information, not legal advice. Confirm current rules at uscis.gov and with an immigration attorney before making decisions.