USCIS Clarifies $100,000 H-1B Fee: Domestic Filings Are Exempt
USCIS Clarifies $100,000 H-1B Fee: Domestic Filings Are Exempt
In a move that will come as welcome news to thousands of employers and foreign professionals, the U.S. Citizenship and Immigration Services (USCIS) has issued a critical clarification regarding the controversial $100,000 supplemental fee imposed on certain H-1B filings under the recent Presidential Proclamation.
The bottom line: petitions filed within the United States for workers already in lawful status are exempt.
Why This Matters
When the Presidential Proclamation first announced the steep supplemental fee, it sent shockwaves through the immigration community. Employers worried about the cost implications for all H-1B filings, while foreign professionals already working or studying in the U.S. feared they might be priced out of the visa category entirely.
USCIS's clarification removes much of that uncertainty. The agency has confirmed that the fee does not apply to domestic petitions requesting an amendment, change of status, or extension of stay for workers already maintaining lawful status in the United States.
Common Exempt Scenarios
This exemption covers some of the most frequent H-1B filing situations:
F-1 to H-1B Transitions: International students graduating from U.S. universities and seeking to change status from F-1 to H-1B remain exempt. This is perhaps the most significant aspect of the clarification, as this pathway represents a substantial portion of H-1B petitions filed annually.
Extensions of Stay: Current H-1B employees seeking to extend their status with the same or a new employer are not subject to the fee.
Amendments: Petitions filed to amend existing H-1B status—whether due to job changes, location changes, or other modifications—remain unaffected.
Who Must Pay
The $100,000 supplemental fee applies exclusively to new H-1B filings for workers currently outside the United States who are seeking initial entry in H-1B status. This targets employers recruiting foreign talent from abroad for first-time H-1B employment, not those supporting employees already contributing to the U.S. workforce.
Importantly, USCIS has confirmed that approval of a domestic H-1B petition protects the beneficiary from future fee liability. Even if an employee whose petition was approved domestically later travels abroad and reenters using an existing or newly issued H-1B visa, the $100,000 fee will not be triggered.
Payment Mechanics
For petitions subject to the $\$100,000$ supplemental fee, payment is due at the time of filing the Form I-129.The fee must be paid electronically through the federal government's online portal at Pay.gov. USCIS has designated a specific online form for this purpose.
Crucially, the petitioner must include proof of payment or evidence of an approved exception from the Secretary of Homeland Security when submitting the H-1B petition to USCIS.
Petitions filed without the required proof of the supplemental fee payment or an approved exception will be denied as incomplete.
Strategic Considerations for Employers
This clarification creates a significant strategic divide. Employers should carefully assess:
Whether a prospective employee is already in the U.S. in lawful status (making them eligible for the exemption)
The timing of status changes to maximize the domestic filing exemption
The cost-benefit analysis of recruiting from abroad versus sponsoring candidates already in the U.S.
Misidentifying whether a petition qualifies for the exemption could result in either an unnecessary $100,000 expenditure or a rejected filing—both costly mistakes.
Looking Ahead
While this clarification provides much-needed certainty, it also underscores a growing bifurcation in U.S. immigration policy: a clear preference for retaining foreign talent already contributing to the American economy over recruiting new workers from abroad.
For employers navigating these waters, the message is clear: domestic H-1B filings—whether for status changes, extensions, or amendments—remain exempt from the $100,000 supplemental fee. Only new petitions for workers outside the U.S. seeking initial H-1B entry are subject to this significant financial barrier.
This article provides general information about immigration law and policy changes. Each case is unique, and individuals should consult with qualified immigration attorneys for case-specific guidance.
Judy Chang Law Firm, National Immigration Law Firm
Copyright© Judy J. Chang, Esq. All rights reserved. 10/22/2025
The information contained in article is provided for general information only and should not serve as a substitute for legal advice.
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