H-1B $100,000 Fee 2026 — What It Means for Indian Workers
The $100,000 H-1B Fee — What Happened?
On September 19, 2025, a Presidential Proclamation imposed a $100,000 fee on all new H-1B visa petitions filed on or after September 21, 2025. This is in addition to the existing base filing fees. The fee is technically paid by the employer — but many companies are now reconsidering H-1B sponsorship for new hires as a result.
Legal status update (as of this review): the fee is currently NOT being enforced — but the legal fight is still ongoing, and this could change again.
On June 8, 2026, a federal court (District of Massachusetts, State of California, et al. v. Noem) ruled the $100,000 fee unlawful and vacated it, finding it functioned as an unauthorized tax the President lacked authority to impose. The government appealed and asked for a stay while the appeal proceeded — but on July 24, 2026, the First Circuit Court of Appeals denied that stay request, concluding the government was unlikely to win on the merits. The practical result: USCIS should not be enforcing the fee on covered petitions right now, and the district court's vacatur is back in effect. This is not the final word — the underlying appeal is still pending, a separate lawsuit in a different circuit reached the opposite conclusion (finding the fee was within presidential authority, now on appeal to the D.C. Circuit), and the original proclamation itself is due to expire on September 20, 2026, with no confirmation yet on whether the administration will renew or replace it. Given the conflicting rulings across circuits, Supreme Court review is a real possibility. Anyone with a pending or planned H-1B filing affected by this fee should confirm the current status with an immigration attorney before filing or budgeting — this situation has changed direction multiple times already and could do so again with little notice.
Who it affects: New H-1B petitions only. Extensions and transfers of existing H-1B holders are not affected. The fee does NOT apply to H-1B cap-exempt employers (universities, non-profits, research institutions).
Who Pays the Fee — Exemptions in Detail
| Petition Type | $100,000 Fee Applies? |
|---|---|
| New H-1B petition (cap-subject employer) | Yes |
| H-1B extension for existing employee, same employer | No |
| H-1B transfer to a new employer (same beneficiary, existing status) | No |
| Cap-exempt employer (university, non-profit research, government research) | No |
| Third-party placement / IT staffing and outsourcing model | Yes — this is the primary target of the policy |
The policy was specifically designed to target the business model where a company sponsors an H-1B worker and then places them at a client site, common in large IT staffing and outsourcing firms. Employers hiring H-1B workers directly onto their own payroll for in-house roles are affected too, but the policy's stated intent was aimed at the staffing/outsourcing pattern.
What This Means for Indian IT Workers
For Indian software engineers, data scientists and IT professionals currently in India hoping to get H-1B sponsorship from a US employer — the $100,000 fee makes this significantly harder. Many mid-size employers who previously sponsored H-1Bs are now pausing hiring of visa-dependent candidates, particularly for junior and mid-level roles where the fee represents a much larger percentage of total compensation cost than it does for senior hires.
The practical effect is a shift in who gets sponsored: senior, hard-to-replace specialists remain attractive H-1B candidates since $100,000 is a smaller fraction of their overall value to the employer, while entry-level and mid-level candidates face a much higher bar to clear before a company will absorb the cost.
What Existing H-1B Holders Should Do
- Renew/extend your H-1B immediately — extensions are not affected by the new fee
- Apply for EB-1A (extraordinary ability) — no employer needed, often current even for India
- Start a Canada PR application in parallel — Express Entry takes 6–18 months and there is no equivalent fee
- Consider EB-2 NIW (National Interest Waiver) — self-petition, no employer sponsorship needed
Canada — The Smart Parallel Track
Most Indian H-1B holders qualify for Canada Express Entry. A software engineer with 5+ years experience, IELTS 7.0+, and a Master's degree can have a CRS score of 450–490. With a PNP nomination (BC Tech, Ontario Tech), an ITA comes within months. Getting Canada PR while on H-1B gives you a permanent safety net.
Other Parallel Tracks Worth Considering
Beyond Canada, the $100,000 fee has pushed more Indian tech professionals to explore other destinations in parallel:
- Germany — the Chancenkarte (Opportunity Card) lets you enter without a job offer and search for work for up to 12 months, or the EU Blue Card offers a fast 27-month path to settlement with a qualifying job offer. Check your points with the Chancenkarte calculator.
- UK — the Skilled Worker visa has no equivalent lump-sum employer fee anywhere near this scale; check your eligibility with the UK Skilled Worker calculator.
- Australia — SkillSelect points-tested visas (189/190/491) offer a route to PR without employer sponsorship at all for candidates with strong points; check your score with the Australia Points calculator.
- Singapore — the Employment Pass has fixed government fees (S$330 total) rather than a scaling lump sum, making cost predictability far higher; check eligibility with the Singapore EP/COMPASS calculator.
None of these require abandoning a US H-1B in progress — many candidates run 2-3 of these processes simultaneously and accept whichever result arrives first or best fits their circumstances.
Frequently Asked Questions
Is the $100,000 H-1B fee still in effect right now?
No, not currently. A federal court ruled the fee unlawful on June 8, 2026, and the government's request to keep enforcing it during the appeal was denied by the First Circuit Court of Appeals on July 24, 2026 — so USCIS should not be enforcing the fee on covered petitions right now. The underlying appeal is still pending, a separate lawsuit reached the opposite conclusion in a different circuit, and the original proclamation is due to expire September 20, 2026, so this status could change again. Confirm current status with immigration counsel before filing or budgeting for a petition affected by this fee.
Does the $100,000 fee apply to H-1B renewals for people already in the US?
No. Extensions and transfers for existing H-1B holders are explicitly excluded from the fee — it applies only to new petitions filed on or after September 21, 2025.
Can my employer pass the fee cost on to me?
No — the fee must legally be paid by the employer, similar to existing H-1B filing fee rules. An employer requiring the employee to cover it would violate labor condition application rules.
Should I abandon my H-1B plans and focus only on Canada?
Not necessarily — many candidates run both processes in parallel rather than choosing one exclusively, since there's no rule against maintaining an active Express Entry profile while also pursuing US options.
Use our free calculators to check your eligibility right now.
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