(UNITED STATES) International students weighing the jump from F1 to H1B are facing a sharper calculus this year, as employers prepare for a new US$100,000 one-time fee on new H-1B petitions and a selection system that places more weight on offered wages. The shift, part of Trump administration reforms, aims to tighten entry at the first work-visa stage. That change matters most for graduates on Optional Practical Training (OPT) who depend on the H-1B visa process to stay in the United States 🇺🇸 and begin long-term careers that may later include a green card and, for some, citizenship.
Key practical questions for students
- When to file: Employers still register in March for the annual H-1B cap selection; petitions filed after September 21, 2025 are expected to carry the new fee.
- Who pays: Clarify early whether the employer will cover the US$100,000 fee and any premium processing.
- How the lottery works now: Selection places more weight on wage level, favoring higher-paid offers.
- Viability of entry-level roles: Entry-level offers that don’t meet higher wage bands may face lower selection odds.

Three pillars for F-1 students aiming for H-1B
- Timing of graduation, OPT, and STEM OPT:
- 12 months of OPT after degree completion.
- Extra 24 months for eligible STEM fields (total 36 months).
- Employer readiness:
- Willing sponsor, a role that meets the specialty occupation definition, and budget for filing/compliance.
- Risk management:
- Travel, documentation, and status maintenance (scrutiny at consulates and ports of entry can test these).
Schools’ international offices and DSOs remain key contacts, but employer legal teams typically guide the H-1B petition process once sponsorship is pursued.
What the reforms mean for employers and students
- The administration describes the reforms as aimed at reducing perceived abuse, especially at lower wage levels.
- US$100,000 fee for new H-1B petitions could reduce the pool of sponsors—particularly small firms and startups.
- Larger firms may continue filing but will likely favor candidates meeting higher prevailing wage levels.
- Graduates in entry-level roles face pressure to either secure stronger wage offers or upskill within their OPT period.
Important: While current H-1B holders are not directly targeted by the fee, hiring decisions for new graduates could change substantially—impacting who gets sponsored in the first place.
The H-1B process — familiar steps, new stakes
- Employers register in March for the cap selection.
- If selected, the employer files a petition using Form I-129. See Form I-129.
- Typical follow-up steps:
- File a Labor Condition Application (LCA) with the Department of Labor (DOL).
- Determine wage level and document that the job meets the specialty occupation standard.
- Maintain a public access file and attest to paying the required wage.
Students should:
– Clarify wage level early.
– Ask if the company will cover the US$100,000 fee.
– Confirm whether premium processing will be used, since speed can affect travel and onboarding.
Cap-gap, change of status, and consular processing
- Cap-gap: If OPT would expire before October 1 and an H-1B change of status is timely filed and selected, work authorization can extend through September 30.
- Change of status: Allows staying in the U.S. while the status switches.
- Consular processing: Requires visa stamping abroad before starting H-1B work.
- Confirm with employer legal counsel whether filing requests change of status or consular processing—this affects travel and risk.
Travel, documentation, and consulate scrutiny
- Consulates may increase scrutiny about job duties, wages, and employer compliance.
- Leaving the U.S. while change of status is pending increases re-entry risk.
- Essential documents to carry and keep organized:
- Updated I-20s
- Employment Authorization Document (EAD) for OPT
- I-94 records
- Offer letters, pay stubs, approval notices
- For visa stamping: schedule interviews early and allow time for possible administrative processing.
Tax implications
- F-1 students on OPT often are exempt from Social Security and Medicare (FICA) for a limited period, depending on IRS rules.
- H-1B workers pay full federal and state taxes, including FICA.
- Expect reduced net pay when switching to H-1B; plan budgets accordingly and consult tax professionals experienced with nonresident/resident rules.
Green card pathway and impacts
- H-1B remains the common gateway to employer-sponsored green cards:
- Start with PERM Labor Certification (Form ETA-9089) — see PERM Labor Certification (Form ETA-9089).
- Then file Form I-140.
- Later file Form I-485 or consular processing when the priority date is current.
- Tighter H-1B entry controls could reduce the flow of workers into the green card queue if employers reduce sponsorship due to costs.
Arguments for and against the reforms
- Supporters: Wage-based selection protects U.S. workers and aligns H-1B with roles needing specialized skills.
- Critics: The US$100,000 fee and wage preference risk shutting out early-career talent—impacting research, healthcare support, and smaller tech firms.
- Universities worry about declines in international enrollment and research output.
- Employers in rural and mid-market areas fear losing talent to larger firms that can absorb costs.
What students should do now
- Focus on fields and roles that match higher wage levels—STEM disciplines like data science, cybersecurity, electrical engineering, advanced manufacturing, and certain health fields have stronger odds.
- Build strong internships and references that demonstrate immediate productivity.
- Maintain perfect compliance: full-time enrollment, on-time filings, and work tied closely to the major.
- Secure supervisor letters that clearly describe complex duties to support specialty occupation claims.
Employer reactions and candidate questions
- Some employers will limit H-1B filings to fewer, higher-wage roles; others may shift junior hiring to domestic graduates or offshore operations.
- Cap-exempt partnerships with universities may expand for research roles.
- Candidates should ask recruiters direct, specific questions:
- Does the company have a history of sponsoring H-1B workers?
- Will the company pay the US$100,000 fee for new petitions?
- Is premium processing part of the plan?
- Prefer sponsors with clear budgets and experienced legal teams.
Region and wage strategy
- Wage-based selection favors cities and regions offering higher entry wages—even if cost of living is higher.
- Employers in lower-wage regions may justify higher wages by emphasizing advanced duties or documenting training plans that show specialty occupation requirements from day one.
Practical checklist for applicants
- Keep copies of all documentation: I-20s, EADs, I-94, offer letters, pay stubs, and filing receipts.
- Ensure job titles and duties match across documents and HR records.
- Ask counsel how travel affects pending change of status.
- Book consular interviews early and monitor local backlogs.
- Plan start dates and relocations to avoid crossing borders during adjudication windows.
Green card timing and transparency
- Employers often start PERM in the second or third H-1B year to manage long queues.
- For workers from backlogged countries, approved immigrant petitions and pending adjustments can allow H-1B extensions beyond six years.
- Ask HR for written policies and clear timelines: when PERM might start, job ladder expectations, and relocation options if sponsorship slows.
Alternatives and international options
- Some graduates will explore Canada 🇨🇦, Australia, or other points-based systems as alternatives to uncertain U.S. sponsorship.
- The U.S. still offers scale, research ecosystems, and strong pay in many sectors—but students must demonstrate skills and wage potential that fit the new H-1B lens.
Employer compliance and documentation changes
- Employers may request transcripts, class syllabi, portfolios, and internal references to link study to job duties.
- Legal teams are likely to audit job postings and align wage levels to strengthen petitions.
- New hires should respond promptly to document requests and be precise about dates and status history.
Government resources
- USCIS provides official guidance and filing instructions; see H-1B Specialty Occupations.
- Read form instructions and policy manuals closely and follow counsel’s guidance to keep filings clean.
Broader outlook and sector differences
- The debate will continue: supporters emphasize strict wage alignment; industry groups warn of talent shortages in AI and clean energy.
- Effects will vary by sector and region—some will keep sponsoring heavily; others will pause and observe the first fee cycle’s outcomes.
- Students should read their market carefully and adjust plans as facts evolve.
Common scenarios and responses
- Nearing OPT’s end without selection:
- If STEM-eligible: use the 24-month STEM extension and try again.
- If not STEM: options include higher-degree enrollment, cap-exempt employment, or working abroad.
- Multiple offers:
- Prefer employers with a track record of sponsorship and established legal support.
- Ask for written confirmation on fee coverage, including the US$100,000 fee.
- Family considerations:
- H-4 spouses have limited work options unless green card progress permits employment.
- Plan schooling and travel around stamping and school calendars; build backup plans.
Final takeaways
- The basic F1-to-H1B sequence remains: graduate → secure OPT → land a sponsor → clear the cap → file Form I-129 → use cap-gap if needed → shift status on October 1.
- Layered on top are new risks: US$100,000 fee, wage-focused selection, potential changes to student stay rules, and tougher travel checks.
- For students: pursue internships, build technical credibility, keep records immaculate, and ask clear questions about sponsorship costs and timelines.
- For employers: be ready to benchmark wages, tighten job scopes, and formalize selection criteria.
As the next cap season approaches, employers and students will adapt: some will increase wages and tighten job scopes, others will wait to see results from the first cycle under the US$100,000 fee. If you’re still in school, now’s the time to boost skills and build documentation for a stronger petition. If you’re on OPT, get documents in order and discuss costs and timelines with sponsors early and clearly.
This Article in a Nutshell
The Trump administration’s H-1B reforms introduce a US$100,000 one-time fee for new petitions filed after September 21, 2025, and modify the selection system to prioritize higher wages. These changes tighten initial entry for foreign graduates transitioning from F-1 to H-1B, particularly impacting OPT participants and entry-level roles. Employers—especially small firms and startups—may reduce sponsorships or concentrate on higher-paying hires, while larger companies could absorb costs and favor higher prevailing wages. Students should confirm who will pay fees, verify wage levels, maintain impeccable documentation (I-20, EAD, I-94, offer letters), and consider STEM fields, internships, or alternative countries. Cap procedures remain: employer registration in March, I-129 filing if selected, LCA filing, and potential cap-gap extensions. The reforms could slow flows into employer-sponsored green cards if sponsorship declines.