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USCIS Clarifies $100,000 H-1B Surcharge One Week Before First Rejections Begin

USCIS Clarifies $100,000 H-1B Surcharge One Week Before First Rejections Begin
In a late-evening update on October 27, U.S. Citizenship and Immigration Services released additional guidance on President Trump’s unprecedented $100,000 “American Worker Protection Fee” for new H-1B petitions. The agency confirmed that petitions filed without proof of payment or an exemption will be summarily denied and that change-of-status or extension petitions are exempt unless ultimately approved for consular processing.

The proclamation—signed Sept 19—has already sparked multiple lawsuits, but the fee technically applies to H-1B petitions received by USCIS since Sept 21. Because many employers rushed filings while awaiting clarity, attorneys fear a wave of denials and lost start dates once USCIS begins formal adjudication next week. Tech firms, hospitals and universities are triaging cases to verify wire-transfer receipts from Pay.gov.

F-1 students hoping to bridge to H-1B status in the 2026 cap season face new obstacles: paying the six-figure surcharge or leaving the country while the petition is processed abroad. International students therefore must recalculate cost-benefit scenarios for Optional Practical Training and long-term U.S. careers.

For global-mobility directors, budget assumptions for intra-company transfers have been upended. Some firms are exploring Canada- or Mexico-based remote-work hubs to retain STEM talent without incurring the fee. Others expect to shift hiring to the L-1 or O-1 categories, although labor-market tests and evidentiary burdens differ.
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