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USCIS has released new implementation guidance on the $100,000 supplemental fee established under the Sept. 19, 2025, Presidential Proclamation "Restriction on Entry of Certain Nonimmigrant Workers." The update provides clarity for U.S. employers and their HR and legal teams: most domestic H-1B filings will not be subject to the new fee, while exceptions for overseas hires will be approved only in extraordinarily rare circumstances.
Effective Date and Scope
The $100,000 fee applies only to new H-1B petitions filed on or after Sept. 21, 2025, for foreign nationals outside the United States who will require visa issuance and initial entry. Petitions filed before that date are not subject to the payment. USCIS confirmed that change of status petitions for individuals already in the United States, as well as amendments, extensions, and change of employer filings, are exempt. This means the majority of H-1B activity, including extensions and transfers filed domestically, may proceed without additional cost or disruption.
An example of an H-1B petition subject to the $100,000 fee would be a new petition filed by a U.S. employer for a software engineer currently residing in India who will require visa issuance and entry to begin employment in the United States. The petition falls within the scope of the fee because the individual is outside the United States and seeking initial H-1B admission. In comparison, an F-1 student residing in the United States whose U.S. employer files an H-1B change of status petition is not subject to the fee. The student is already in the United States and is not applying for visa issuance or entry from abroad, which makes the filing a domestic petition and, therefore, exempt under the new USCIS guidance.
Exception Requests: 'Extraordinarily Rare' and Limited in Scope
USCIS announced that the secretary of homeland security will grant exceptions to the $100,000 fee only in "extraordinarily rare circumstances." Employers must demonstrate that no American worker is available to fill the position, that the H-1B worker's employment is in the national interest, that the individual poses no threat to the security or welfare of the United States, and that payment of the fee would significantly undermine U.S. interests. All exception requests, including supporting evidence, must be submitted by email to H1BExceptions@hq.dhs.gov. USCIS emphasized that approvals will be granted sparingly and only when all four criteria are met.
Employer Impact and Strategic Considerations
For HR and legal teams, the update may provide meaningful relief and operational clarity. Domestic filings, including routine extensions, amendments, and transfers, may continue without change. However, employers may wish to evaluate overseas hiring plans and budget accordingly for new H-1B petitions requiring visa issuance abroad. Employers may wish to treat exception requests as a last-resort strategy for mission-critical hires, and these should be supported with detailed documentation aligned to USCIS's four factors. Employers should also monitor forthcoming DHS guidance expected to address payment procedures and confirmation of receipt for exception submissions.
Policy Context
According to DHS and the White House, the purpose of the $100,000 fee is to ensure that H-1B hiring aligns with high-skill, high-wage positions, and to prioritize U.S. workers. The exemption for domestic filings reflects the government's acknowledgment that employers operating within the United States already comply with prevailing wage, attestation, and labor condition requirements.
Key Takeaway
The USCIS clarification limits the immediate operational impact of the new rule. For some employers, H-1B processes conducted within the United States remain unaffected. The fee primarily targets new petitions for overseas hires, while exception requests will be available only in rare, well-documented cases. Employers may wish to assess overseas hiring needs, model potential costs, and maintain compliance under the evolving H-1B framework.
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