In a policy clarification posted to its website and picked up by Trak.in on October 25, 2025, U.S. Citizenship and Immigration Services stated that foreign nationals already in the United States on a valid non-immigrant visa—such as students in F-1 status—will not have to pay the new US$100,000 H-1B fee when they change status or extend an existing H-1B inside the country. The six-figure charge applies only to initial petitions filed at consulates abroad.
The announcement immediately sparked debate among immigration lawyers, some of whom called it a "loophole" that could incentivize companies to bring candidates to the U.S. on visitor visas first, then file a change-of-status petition domestically. USCIS pushed back, noting that fraudulent intent at entry remains a ground of inadmissibility and that consular processing may still be required for many cases.
For employers, the clarification offers a cost-containment strategy: hire graduates already in F-1 Optional Practical Training, then convert them to H-1B without incurring the new fee. Global mobility teams should update recruitment pipelines to leverage U.S. campus hiring and ensure strong I-9 compliance to avoid allegations of pretextual admissions.
The policy also underscores the complexity of the evolving fee landscape. Companies must now track where and how each petition is filed, as identical workers could generate wildly different costs depending on processing path. Expect further guidance as USCIS updates the Form I-129 instructions and the electronic H-1B registration portal ahead of the March 2026 season.
The announcement immediately sparked debate among immigration lawyers, some of whom called it a "loophole" that could incentivize companies to bring candidates to the U.S. on visitor visas first, then file a change-of-status petition domestically. USCIS pushed back, noting that fraudulent intent at entry remains a ground of inadmissibility and that consular processing may still be required for many cases.
For employers, the clarification offers a cost-containment strategy: hire graduates already in F-1 Optional Practical Training, then convert them to H-1B without incurring the new fee. Global mobility teams should update recruitment pipelines to leverage U.S. campus hiring and ensure strong I-9 compliance to avoid allegations of pretextual admissions.
The policy also underscores the complexity of the evolving fee landscape. Companies must now track where and how each petition is filed, as identical workers could generate wildly different costs depending on processing path. Expect further guidance as USCIS updates the Form I-129 instructions and the electronic H-1B registration portal ahead of the March 2026 season.
