H-1B visa: Many foreign workers, and students, exempted from $100,000 fee

"Foreign citizens already in the U.S., including students, will be exempted from the Trump administration's controversial new $100,000 fee for the H-1B visa, federal authorities said this week. The fee was imposed via a proclamation from President Donald Trump and took effect Sept. 21, with certain details initially unclear. This week, U.S. Citizenship and Immigration Services issued an advisory saying the fee paid by employers would apply only to new H-1B visas issued to workers who are outside the country. The levy will not be imposed for workers switching to an H-1B visa from other visas, including the F-1 student visa, the agency said."

"Imposition of the hefty new fee for the visa intended for workers with specialized skills has generated criticism and lawsuits. Last week, the U.S. Chamber of Commerce sued the federal government, claiming the added cost would lead to fewer employers being able to access the highly skilled workers they need to continue to innovate and create American jobs. Citizenship and Immigration Services declined to comment on the lawsuit. Trump's proclamation said systematic abuse of the H-1B program had led to large-scale replacement of American workers."

"South Bay Democratic Rep. Sam Liccardo, former mayor of San Jose, said in a post on X Wednesday that major tech companies, recently subjected to bipartisan attacks for hiring H-1B workers while conducting layoffs, could afford the $100,000 fee. But, Liccardo said, the $100,000 cost would stymie immigrant-founded start-ups and early-stage companies, the lifeblood of our innovation economy. Howard University professor Ron Hira, who researches the H-1B, said Wednesday he expected the fee would have limited effect. Last year, fewer than half of new H-1B visas went to people not already in the U.S., and tens of thousands of students switched to the H-1B from their F-1 visas, Hira said. Employers can also avoid the fee by obtaining H-1Bs for workers who hold temporary business visas including"

U.S. authorities announced that the $100,000 H-1B employer fee applies only to new H-1B visas issued to workers outside the United States, exempting foreign nationals already in the country, including students who switch from F-1 status. The fee was established by a presidential proclamation that took effect Sept. 21. The levy has prompted criticism and litigation, including a U.S. Chamber of Commerce lawsuit arguing the charge will reduce employers' access to skilled workers. Lawmakers and researchers warned of impacts on startups, while analysts noted many new H-1Bs already go to people inside the U.S., and employers may use alternative visa pathways.

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