(UNITED STATES) The newest $100,000 H-1B fee on petitions filed for workers outside the country is drawing intense reaction, but policy analysts say any move to scale back or end OPT could reshape the U.S. tech hiring pipeline far more.
OPT—short for Optional Practical Training (OPT)—lets international students on F-1 visas work in the United States shortly after graduation. Because many tech graduates start their careers on OPT and later shift to H-1B without paying the new fee, changes to OPT would touch the largest stream of early-career hiring, not just a subset of new H-1B applicants abroad. VisaVerge.com reports that employers and students are watching OPT closely, as it remains the primary bridge from U.S. universities into the commercial tech market.
Policy changes: what the new rule does and who is exempt
Under the new rules, the $100,000 fee applies to new H-1B visa applications for people outside the United States. Officials say the aim is to slow the inflow of foreign tech workers and push hiring toward higher-wage, “highly skilled” roles.
Key exemptions and design features:
– Existing H-1B holders are not affected.
– F-1 students working under OPT who later move to H-1B are exempt from the new fee.
– Because these exemptions cover a large share of the current talent pipeline already inside the country, critics argue the change hits outsourcing-heavy models and brand-new entrants more than it reshapes the early-career tech job market.
OPT details:
– OPT allows international graduates to work in the U.S. after finishing their programs—typically for one year, with extensions up to three years for some STEM fields.
– In practice, OPT is the launch pad for many young engineers and data professionals who then apply for H-1B after gaining U.S. work experience.
– That path avoids the new fee because the exemption covers those already present and employed on OPT at the time of transition.
Analysts conclude the headline H-1B fee increase may do less to change entry-level competition than it appears, since the OPT channel remains largely intact.
Impact on applicants and employers
Reactions and stakes differ by group:
- New H-1B applicants abroad:
- Must budget for the $100,000 fee, which could reduce applications from some firms and individuals.
- Expect the sharpest impact among companies that previously filed high volumes of offshore-to-onsite transfers.
- Outsourcing and mid-tier consultancies:
- Those that depend on overseas recruitment may face higher costs or rethink hiring strategies—especially for lower-margin projects.
- International students already in the U.S.:
- Can continue using OPT to gain experience and then submit H-1B petitions without paying the new fee.
- This preserves a well-traveled route from campus to full-time roles.
- Domestic tech graduates:
- Often compete with OPT candidates for entry- and mid-level roles—software development, QA, data analysis, and technical support.
- Critics argue that large numbers of OPT workers can hold down wages or reduce openings for recent U.S. graduates.
- They say reducing or ending OPT would quickly shift competition in these segments.
VisaVerge.com’s analysis sums up the administration’s approach: the policy emphasizes screening new arrivals more than shrinking the supply of foreign graduates already here and eligible to work. That is why some see the fee as a partial fix—it raises costs for a slice of the H-1B pipeline while leaving the core source of junior talent, OPT, mostly untouched.
From the employer perspective:
– Many managers say the OPT-to-H-1B track helps them assess candidates on the job before committing to long-term sponsorship.
– Because the fee exemption protects that path, companies can still hire graduates on OPT, fill near-term needs, and later decide whether to sponsor an H-1B—without the headline $100,000 cost.
– For firms on tight timelines and budgets, this continuity matters more than the barrier affecting offshore applicants.
From the student perspective:
– An international STEM graduate can often work for up to three years on OPT, building a resume, paying rent, and gaining U.S. references.
– The ability to move from a campus position to a paid role in the U.S. can determine whether a career begins domestically or shifts back home.
– Any change to OPT—even mere discussion—has deep ripple effects on families, finances, and long-term plans.
The immediate effect of the fee is limited to new overseas petitions; the broader market effect hinges on any changes to OPT.
Why OPT changes could outweigh the fee
The core reason OPT looms larger than the fee is volume and placement.
- OPT is the entry ramp for thousands of new tech workers in roles where domestic graduates also apply.
- These roles—coding, testing, data cleanup, support, and other build-and-fix tasks—are where companies train junior staff and evaluate future leaders.
- If OPT shrinks, the supply of candidates for those jobs shrinks at once, producing immediate market effects.
By contrast:
– The H-1B fee hits a narrower band: new petitions from abroad.
– Because the rule spares current H-1B holders and OPT workers moving to H-1B, much of the real-world hiring cycle for junior roles continues unchanged.
– In short, the headline $100,000 does not touch the main lane many employers use for fresh talent already inside the country.
Arguments on both sides:
– Critics who want tighter labor markets for domestic grads argue: reduce or end OPT, and you lower foreign competition in the exact segments where new U.S. graduates apply, likely increasing openings and wages.
– Supporters of OPT counter that the program keeps the U.S. attractive to top students, helps companies scale quickly, and feeds innovation by retaining trained graduates.
Policy watchers note the administration’s emphasis on new entries rather than the existing system. Those who view OPT as the deeper issue see the fee as a first pass that avoids a larger fight. Others see the fee as a necessary step to push employers toward higher-wage hiring while preserving a path for students already here.
Practical points for near-term planning
For employers and students preparing filings, several practical points stand out:
- The new H-1B fee:
- Applies to new petitions for individuals outside the United States.
- Exemptions include existing H-1B holders and F-1 students on OPT who later change to H-1B.
- Hiring implications:
- Because the OPT-to-H-1B path is exempt, many entry- and mid-level openings will still run through OPT.
- Companies may continue to prioritize candidates already in U.S. roles.
- Actions to take:
- Domestic graduates should watch any discussion around OPT changes, not just H-1B fees.
- Students and employers should keep records and timelines tight:
- F-1 graduates typically request work authorization through Form I-765 (Application for Employment Authorization).
- Employers sponsoring H-1B use Form I-129 (Petition for a Nonimmigrant Worker).
- Clean documentation and planning help avoid delays and missed windows.
For official program details, see the U.S. government’s page on Optional Practical Training (OPT): Optional Practical Training (OPT). If you are preparing filings, refer to USCIS form pages for Form I-765 and Form I-129 to ensure you use the current editions and follow posted instructions.
Looking ahead
The biggest unknown is whether leaders will attempt to reform or end OPT. If that happens, the result would go beyond a cost shift: it would change who gets a first step into the country’s tech workforce, where domestic graduates feel the job market tighten or loosen, and how companies plan early-career hiring.
If OPT remains:
– The H-1B fee will reshape some recruiting from abroad, but the day-to-day junior hiring pipeline—powered by OPT—will continue much as before.
If OPT changes:
– The effect would be swift and broad across entry- and mid-level tech roles that launch careers and set pay scales for years to come.
The debate has two layers:
– The fee sends a message about costs and priorities for new overseas petitions.
– OPT is the infrastructure of early-career hiring inside the U.S.—it operates in labs, internships, and first full-time offers.
For now, the headline is the $100,000 H-1B fee. The story that will decide hiring on the ground is what happens to OPT.
This Article in a Nutshell
The new $100,000 fee targets new H-1B petitions filed for foreign-based workers, aiming to slow lower-wage offshore hiring and encourage higher-paid roles. Critically, the rule exempts existing H-1B holders and F-1 students currently working on OPT who later change status, which preserves the main pipeline of early-career tech hires. OPT typically gives graduates one year of work authorization, with STEM fields eligible for extensions up to three years — a primary route from U.S. universities into entry- and mid-level tech roles. Analysts argue that any reforms or elimination of OPT would have a far broader and quicker impact on junior hiring, wages, and competition than the fee alone. Employers and students should monitor OPT policy discussions and maintain proper I-765 and I-129 documentation when preparing filings.
