Published: 10 October 2026 | SkilledB Overseas Education, Madurai
Few immigration topics have confused Indian students and families as much as the H-1B fee. One website says it is $100,000. Another says it has been struck down. A third says a new $103,265 fee is coming. WhatsApp forwards make it worse. This guide sets out, in plain language, what is actually happening as of 10 October 2026, based on court rulings, Federal Register notices and law-firm updates.
This is general information, not legal advice. The situation is changing quickly, so confirm the latest position with an immigration attorney or your employer’s counsel before making any decision.
First, Why Should a Student Care About the H-1B?
The H-1B is the main US work visa for graduates in specialty occupations. For most Indian students, the US study plan runs like this: study, work on OPT or STEM OPT, then get sponsored for an H-1B through the annual lottery. If the cost of sponsoring an H-1B rises sharply, fewer employers will sponsor early-career graduates, and your chances of staying in the US after your degree change.
That is why the H-1B fee matters even if you have not yet applied to a single university.
The Short Version
Here is the position as of this week:
- The $100,000 H-1B fee introduced by a presidential proclamation in September 2025 was struck down by a federal court on 8 June 2026.
- The government appealed. The court briefly paused its own decision, and the fee was collected again for a short period from mid-June. On 24 July 2026, the First Circuit Court of Appeals refused to keep the pause in place while the appeal continues.
- As a result, US Citizenship and Immigration Services (USCIS) is not currently collecting the $100,000 fee. Tracking sites updated in late September state that it was not being collected as of 21 September 2026.
- On 18 September 2026, the administration issued a proclamation extending the $100,000 fee policy through 21 September 2027, which signals an intention to bring the fee back if it wins in court.
- Separately, on 25 August 2026, DHS proposed a new $103,265 fee on H-1B cap-subject petitions through formal rulemaking. The comment period on that proposal closed on 24 September 2026. It is only a proposal.
So the honest answer to “is the $100,000 H-1B fee in force?” is: not right now, but it could come back, and a different fee is proposed.
A Timeline You Can Trust
| Date | What happened |
|---|---|
| 21 Sept 2025 | Proclamation introduces a $100,000 fee on certain new H-1B petitions |
| 8 June 2026 | A federal court in Massachusetts vacates the fee policy, finding it an unlawful tax and a violation of administrative law |
| 11–12 June 2026 | Government appeals and asks for a stay; a temporary pause allows collection to resume for a short time |
| 24 July 2026 | First Circuit declines to keep the pause; the fee stops being collected |
| 25 Aug 2026 | DHS proposes a new $103,265 fee through rulemaking |
| 18 Sept 2026 | Proclamation extends the $100,000 fee policy to 21 Sept 2027 |
| 24 Sept 2026 | Comment period on the $103,265 proposal closes |
Other lawsuits challenging the fee have produced different results in different courts. Reporting indicates that a separate federal court upheld the fee in another case, and that decision is on appeal. This is why legal commentators describe the position as uncertain and why a higher court, possibly the Supreme Court, could eventually decide the issue.
What Was the Court’s Reasoning?
According to law-firm summaries of the June ruling, the judge concluded that the fee was in substance a tax, which the President cannot impose without Congress, and that the way the government implemented it did not follow the required administrative procedures. In other words, the decision was not about whether H-1B workers are good or bad for the economy. It was about who has the legal power to charge a fee of that size.
That detail is important because it explains why DHS has now tried a different route. A proposal made through formal rulemaking, with a public comment period, is designed to address the procedural weaknesses the court identified. Supporters of the new proposal argue that Congress has already allowed agencies to set fees to recover costs. Opponents, including employer groups, say that a $103,265 charge cannot be justified as cost recovery and still oversteps the law.
The $103,265 Proposal: What We Know
- It would apply to H-1B cap-subject petitions, which means the annual lottery category.
- Reporting indicates it would cover petitions including those under the advanced degree (master’s cap) exemption and requests involving a change of status. That matters for students, because many F-1 graduates change status from F-1 to H-1B inside the United States.
- It is a proposal, not a rule. DHS must review the comments, publish a final rule and set an effective date.
- If finalised, it is widely expected to be challenged in court.
Employers, hospitals, universities and business groups submitted comments warning that a fee at this level would damage hiring, particularly for smaller employers and for healthcare providers that rely on international staff.
What This Means for Indian Students in Practice
1. The fee, if it returns, would fall mainly on employers, but the effects reach you
H-1B petitions are filed by employers, and the law generally requires employers to bear core costs. So if a fee of this size is ever collected, the first impact is on the company. But companies respond by changing who they hire. Large technology firms, consulting companies and major hospitals can absorb costs more easily. Startups, mid-sized firms and smaller employers often cannot. International students who hope to be hired by smaller firms may find fewer sponsors.
2. Wage-level selection already favours experience
Under the weighted selection approach in place this year, higher wage levels have a better chance of selection than entry-level wages. Together with a possible high fee, this pushes employers toward more senior and higher-paid hires. For new graduates, this is why internships, projects and demonstrable skills matter more than ever.
3. The sequence of changes matters
A student entering a US master’s programme in 2027 would graduate in 2028 or 2029. By then, the H-1B fee situation, the OPT fee proposal and the green card queue could all look very different. Nobody can promise that today’s rules will be tomorrow’s rules. That is why a flexible plan is more valuable than a perfect forecast.
How to Think About Risk Without Panic
Here is a practical way to look at it.
What is certain today: The $100,000 fee is not being collected. A new $103,265 fee is only a proposal. The OPT fee is also only a proposal (see our separate blog this week).
What is uncertain: Whether the government wins its appeal, whether the proclamation extension holds up in court, whether the new rule is finalised, and whether future legislation changes any of this.
What you can control: Your choice of course and university, your total budget, your backup destinations, your skills and your timeline.
Smart Planning Steps for 2027 Applicants
- Choose programmes with strong employer links. Universities with established recruiters, co-op placements and alumni networks give you more routes into jobs, including routes that do not depend on the H-1B.
- Prefer higher-demand specialisations. Healthcare, data, AI, cybersecurity, engineering and finance roles can support higher wages and stronger sponsor interest.
- Research sponsors before you apply. Public H-1B employer data shows which companies have sponsored workers in the past. A programme whose graduates join those companies is a better bet.
- Keep a second country on your shortlist. Canada, Germany, the UK, Ireland and Australia each offer post-study routes, though each has its own limits.
- Do not take on loans that only work in the best-case scenario. Stress-test your repayment plan against a longer job search or a lower first salary.
- Follow official sources and qualified advice. Be careful with social media claims. In the last month, several viral posts have repeated outdated information about this fee.
Alternatives Worth Understanding
If you are weighing the US against other destinations, this is how the main post-study routes look this week. Always confirm the current rules before applying.
- Germany: Graduates of German universities can apply for an 18-month residence permit to look for work, and the EU Blue Card route to long-term residence is among the faster in Europe. Germany has also been actively recruiting from India. According to the Business Standard, Germany raised its skilled worker visa quota for Indians from 20,000 to 90,000 a year, and the number of Indian workers in Germany grew from about 23,000 in 2015 to about 137,000 in 2024.
- United Kingdom: The Graduate Route offers an open work permission of two years if you apply by 31 December 2026, and 18 months afterwards. Skilled Worker sponsorship requires a licensed employer and a minimum salary.
- Canada: PGWP duration depends on programme and level, and the number of new study permits is tightly capped.
- Australia: The post-study route is the Temporary Graduate visa, and the October 2026 changes affect onshore student visa applications.
Cap-Subject and Cap-Exempt: Why the Detail Matters
Most discussion of the H-1B fee focuses on companies in the annual lottery. The proposed $103,265 fee is described as applying to cap-subject petitions. Some employers are cap-exempt, which generally includes certain universities, affiliated nonprofit organisations and some research institutions. They can file H-1B petitions without going through the lottery. Whether and how any fee would apply to cap-exempt filings is a legal question, and the answer may depend on the final rule, so ask an attorney rather than assuming.
For a student, this matters when you think about career paths. A research-oriented graduate who joins a university or a research institute may follow a different H-1B route from a graduate who joins a large technology company. Neither path is automatically better, but they have different timelines and costs.
Myths and Facts
| Myth | Fact (as of 10 October 2026) |
|---|---|
| “The $100,000 H-1B fee is being charged now.” | USCIS is not collecting it because of a June court ruling and the appeals court’s refusal to pause that ruling in July. |
| “The fee has been cancelled forever.” | The government is appealing, and a proclamation extended the policy to 21 September 2027. It could return. |
| “The $103,265 fee is already law.” | It is a proposed rule, with comments closed on 24 September. It is not final. |
| “Students pay the H-1B fee.” | Employers file H-1B petitions and generally bear the core costs. Check the final rule for details. |
| “Nobody can get an H-1B any more.” | The lottery continues under the rules in force, though costs and selection rules are changing. |
| “All courts agree the fee is illegal.” | Courts have reached different results, which is why the question may be decided by a higher court. |
What a Graduate Should Do in the Lottery Year
If you reach the point of registering for the H-1B, here is a practical checklist.
- Talk to your employer’s immigration counsel early. Ask what they plan to do about fees and who bears them.
- Check your wage level. Under the weighted approach, higher wage levels have a better chance of selection.
- Have a backup status plan. If you are on STEM OPT, understand your end date and any gaps.
- Keep your documents in order. Degree certificates, transcripts, employment letters and pay records should be accurate and consistent.
- Consider other routes. Depending on your profile, other visa categories or other countries may be options. An attorney can advise on this.
- Avoid shortcuts and rumours. Never pay someone who promises a guaranteed selection.
What the Fee Story Teaches About Choosing a Study Destination
The most important lesson is not the size of any single fee. It is that the cost and rules of the post-study route can change after you have already paid for your degree. A student who chooses a destination purely because of a rule that exists today is taking a risk, because that rule may not exist when graduation arrives.
A more robust way to decide is to ask three questions:
- Would I still value this degree if I left after graduation? A strong education and network have value even without a long stay.
- Can I afford it if the post-study route is shorter or costlier than expected? Stress-test your budget.
- Do I have at least one other country where I could use my skills? Flexibility is protection.
Frequently Asked Questions
Do I have to pay $100,000 if I get an H-1B next year?
Not under the current position. USCIS is not collecting the $100,000 fee because of the court ruling. However, the legal position could change if the government wins on appeal, and a separate proposed fee of $103,265 is under consideration.
Who pays the H-1B fee, the employee or the employer?
Employers file H-1B petitions and generally bear the core filing costs. Whether any new fee could lawfully be passed to the worker is a question for an attorney, and it depends on the final rule.
Does the proposed $103,265 fee apply to F-1 to H-1B change of status?
Reporting on the proposal indicates it would cover cap-subject petitions including change-of-status requests. It is not final.
Why did the government extend the $100,000 policy to September 2027?
The extension signals that the administration wants to keep the option of collecting the fee if it prevails in court. It does not mean the fee is being collected now.
Is the H-1B lottery still happening?
The cap-subject lottery continues under the rules in force. The details of selection and fees may change, so check official announcements before each registration period.
Should I avoid the US because of this?
Not necessarily. But you should avoid a plan that depends on one visa pathway working perfectly. Build flexibility into your budget, your skills and your destination list.
Final Word
The H-1B fee story shows how fast US immigration policy can move: a fee is introduced, struck down, briefly revived, blocked again, extended on paper and replaced by a new proposal, all within about a year. For students and families, the lesson is simple. Plan around what is in force, prepare for what might change, and make decisions that you would still be comfortable with if the rules shifted again.
SkilledB Overseas Education, Madurai — clear, current guidance on studying and working abroad, from shortlisting to visa filing.
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