Is the 100K H1B Fee in Effect? What F-1 and OPT Students Need to Know
The 100K H1B fee is not being collected as of Oct. 22, 2026. Federal courts in Massachusetts and California have struck down the agency policies that enforce the $100,000 payment, even though a September proclamation extended it to Sept. 21, 2027. F-1 students who change status inside the U.S. were largely exempt from it anyway.
Key Facts
- Proclamation 10973, signed Sept. 19, 2025, required a $100,000 payment with certain new H-1B petitions filed on or after Sept. 21, 2025.
- On June 8, 2026, a federal court in Massachusetts vacated the agency guidance enforcing the $100,000 payment in State of California v. Mullin.
- On July 24, 2026, the First Circuit refused to pause that ruling, and USCIS says it is complying during the appeal.
- Proclamation 11069, signed Sept. 18, 2026, extends the $100,000 H-1B requirement until Sept. 21, 2027.
- On Sept. 30, 2026, Judge Haywood S. Gilliam Jr. of the Northern District of California vacated the policies implementing both proclamations pending rulemaking.
- USCIS guidance says the $100,000 payment does not apply when USCIS approves a change of status inside the U.S., such as F-1 to H-1B.
- A separate DHS proposal published Aug. 25, 2026, would add a $103,265 fee to every cap-subject H-1B petition, including the master's cap. It is not final.
Is the 100K H1B Fee in Effect Right Now?
No. The proclamation itself is still on the books, but the rules agencies used to collect the money have been vacated. USCIS's H-1B Specialty Occupations page says DHS "will comply with the court's order while DHS considers next steps." The same notice warns: "If this order is later lifted, DHS still plans to collect the payment."
The September extension has not changed that. Proclamation 11069 keeps the $100,000 requirement running for another 12 months. But the University of Colorado Boulder's international student office said on Oct. 7 that because the court order blocking collection remains in place, the extension "currently has no practical effect."
Where the H-1B Fee Lawsuits Stand
Three federal courts have ruled so far, and they have not agreed.
| Date | Court or Action | What Happened |
|---|---|---|
| Sept. 19, 2025 | White House | Proclamation 10973 sets the $100,000 payment, effective Sept. 21, 2025 |
| Late 2025 | D.D.C., Chamber of Commerce v. DHS | Upholds the proclamation and fee; now on appeal to the D.C. Circuit |
| June 8, 2026 | D. Mass., California v. Mullin | Vacates DHS and State Department guidance implementing the fee |
| July 24, 2026 | First Circuit | Denies the government's request to pause the vacatur during appeal |
| Sept. 18, 2026 | White House | Proclamation 11069 extends the requirement to Sept. 21, 2027 |
| Sept. 30, 2026 | N.D. Cal., Global Nurse Force v. Trump | Vacates the implementing policies for both proclamations pending rulemaking |
| Oct. 9, 2026 | Ninth Circuit | Government files notice of appeal, according to Bloomberg Law |
In the California case, Judge Gilliam's Sept. 30 order found the employers were likely to win their claim that DHS skipped required notice-and-comment rulemaking. He barred enforcement of the policies under either proclamation until that rulemaking is done and declined to put his ruling on hold.
In the Massachusetts appeal (First Circuit No. 26-1699), the government filed its opening brief in September. The court's docket set a Nov. 4, 2026, deadline for the states' response brief. Bloomberg Law reported on Oct. 12 that the administration has appealed the California ruling to the Ninth Circuit and asked for a stay.
Does the H-1B Fee Apply to F-1 Students Changing Status?
Under the USCIS guidance issued in October 2025, mostly no. The $100,000 payment was aimed at petitions for workers outside the U.S. who do not hold a valid H-1B visa. USCIS says the proclamation "does not apply to a petition" requesting "an amendment, change of status, or extension of stay for an alien inside the United States where the alien is granted such amendment, change, or extension."
That covered the usual path for graduates: an employer files a cap petition while the student is on OPT or STEM OPT and asks USCIS to switch the student from F-1 to H-1B. If USCIS approves, no $100,000 payment is due, even if the worker later travels abroad.
The exemption had limits. The payment applied if USCIS found the student ineligible for a change of status, for example because the student was out of status or left the U.S. before a decision. It also applied to petitions seeking consular notification.
Those rules matter again only if a higher court revives the fee.
What Is the Proposed $103,265 H-1B Fee?
This separate charge is the one F-1 students should watch most closely. In a proposed rule published Aug. 25, 2026, DHS would charge $103,265 at filing on "all H-1B cap-subject petitions, including those eligible for the advanced degree exemption." Public comments closed Sept. 24, 2026.
Unlike the proclamation payment, the proposal does not turn on where the worker is, so a cap petition for an F-1 graduate in the U.S. would owe it too. The USCIS announcement says the fee would not apply to cap-exempt petitions, such as those filed by universities, nonprofit research organizations and governmental research organizations.
The Federal Register shows no final rule as of Oct. 22, 2026, so the fee cannot be charged yet.
| $100,000 Proclamation Payment | Proposed $103,265 Fee | |
|---|---|---|
| Legal basis | Presidential proclamation | DHS fee regulation |
| Who pays | Mainly petitions for workers outside the U.S. | All cap-subject petitions, including master's cap |
| F-1 change of status | Exempt if USCIS approves the change | No exemption in the proposal |
| Cap-exempt employers | Not exempt by category | Exempt |
| Status on Oct. 22, 2026 | Blocked by court orders | Proposed only; comments closed Sept. 24 |
DHS has also proposed charging students for OPT itself. See our coverage of the proposed $70,000 OPT fee, which is open for comment until Nov. 9, 2026.
How the H-1B Lottery 2027 Changed for Graduates
DHS replaced the random H-1B lottery with a weighted selection process that took effect Feb. 27, 2026. It favors registrations at higher wage levels. USCIS said on March 31, 2026, that it had selected enough registrations to fill the fiscal 2027 cap, and on July 17 it announced it had received enough petitions to reach both the 65,000 regular cap and the 20,000 master's cap.
The September proclamation says registrations for people with at least a U.S. master's degree rose from 45.1% of the total for fiscal 2026 to 66.1% for fiscal 2027. USCIS has not yet posted dates for the next registration season.
Frequently Asked Questions
Does the H1B fee apply to F-1 students?
Not right now. Courts have vacated the policies that collect the $100,000 payment, and USCIS already exempted F-1 students whose change of status to H-1B was approved.
Are F-1 students exempt from the H-1B fee hike?
From the $100,000 payment, mostly yes, if USCIS approves the change of status. From the proposed $103,265 fee, no: it would cover all cap-subject petitions, including master's cap filings for students in the U.S.
Does the $100,000 H-1B fee apply to a change of status?
USCIS guidance says no when the change of status is granted. The payment applied if USCIS denied the change, such as after the person left the U.S. before a decision.
Is the H-1B fee lawsuit over?
No. The government is appealing the Massachusetts and California rulings, and a D.C. ruling upholding the fee is on appeal. DHS says it will collect the payment if the orders are lifted.
Will the $103,265 H-1B fee apply to the master's cap?
Yes, if DHS finalizes the rule as proposed. The fee would apply to petitions eligible for the advanced degree exemption, but not to cap-exempt employers such as universities.
What Students Should Do Now
- If you are on OPT or STEM OPT and expect a cap petition, keep your F-1 status valid until USCIS decides any change-of-status request.
- Avoid leaving the U.S. while a change-of-status request is pending.
- Ask employers whether they would pay a $103,265 fee if finalized, and consider cap-exempt employers such as universities.
- Watch your international student office and the USCIS H-1B page for appeal updates.
- Follow other visa changes in our F-1 visa news roundup for October 2026.
Information is current as of Oct. 22, 2026, and comes from the Federal Register, USCIS, the Sept. 30 order in Global Nurse Force v. Trump, the First Circuit docket in California v. Mullin, CU Boulder's international student office and Bloomberg Law. This is general information, not legal advice.
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