(UNITED STATES) A late-October policy clarification in the United States has quickly changed the tone of campus-hiring for international students. Federal officials confirmed that the proposed $100,000 H-1B fee will not apply to people already in the U.S. when their employers file H-1B petitions to change or extend status. The fee instead targets new H-1B petitions for workers outside the country seeking consular processing. The shift, effective for filings on or after September 21, 2025, removes a major cost worry for U.S. companies recruiting on American campuses and is already nudging hiring strategies across tech, finance, and consulting.
Universities report brisk interest from recruiters who, until now, faced steep cost uncertainty when considering global talent. International graduates on F-1 visas are now clearer bets: an employer can file a change of status to H-1B from inside the U.S. without the extra six-figure surcharge. According to analysis by VisaVerge.com, this clarification is pushing firms to focus on talent already present in the United States 🇺🇸 rather than transfers from overseas, reversing years of heavy reliance on offshore-to-onshore staffing.
The change lands at a sensitive time for both employers and students. For companies, the rule brings a simple cost split: hire from U.S. campuses and avoid the H-1B fee, or transfer workers from abroad and pay it. For international students, the message is equally plain: staying in the U.S. through the change-of-status process matters. The clarification does not affect standard filing fees or lottery rules, but it removes the new $100,000 surcharge for those in F-1 status who remain in the country during the H-1B change of status.
Policy details and effective date
Officials stated the fee applies to petitions filed on or after September 21, 2025 for people outside the U.S. without a valid H-1B, or those choosing consular processing abroad.
It does not apply to:
– F-1 students in the U.S. whose employers file H-1B change of status while they remain here
– Current H-1B workers in the U.S. seeking extensions or amendments in the same status
– Petitions filed before September 21, 2025
The policy allows rare case-by-case exceptions if the Secretary of Homeland Security finds a request is in the national interest and meets strict criteria. Officials also noted the fee is not retroactive.
Employers required to pay the surcharge must submit the $100,000 via Pay.gov before filing. The clarification has immediate impact on recruiting calendars, especially as fall career fairs and full-time offers align with F-1 Optional Practical Training (OPT) timelines.
Important: The clarified policy removes the surcharge only for those who remain in the U.S. during change-of-status filings. If an employee must undergo consular processing abroad, the surcharge likely applies for filings on or after September 21, 2025.
How employers are changing playbooks
The cost split is already shaping conversations with CFOs and talent leaders. U.S. tech companies and startups, which run tight hiring budgets, now see on-campus recruiting of international students as lower risk. The fee clarity aligns with a broader shift from “volume-driven visas” toward “value-driven visas,” emphasizing highly skilled, on-site roles and fewer bulk transfers from offshore teams.
Practical hiring patterns emerging:
1. Firms prioritize on-campus interviews and early offers to international students to secure talent before competitors.
2. Some employers pause overseas H-1B transfers to reassess the cost structure and consider near-shore or local U.S. hiring.
3. Service and outsourcing companies accelerate plans to expand delivery centers in lower-cost U.S. cities or nearby countries, reducing dependence on large transfer volumes.
Indian IT services companies, already reducing reliance on H-1B transfers, say the fee accelerates that trend. Clients still want experts on-site, but there’s stronger momentum to hire locally in the U.S. and build teams closer to customers. For many firms, the fee hardens a choice they were making anyway: bring in fewer staff from overseas and invest more in local pipelines.
Impact on students and universities
For students, the near-term effect is straightforward: international students in the U.S. are more attractive candidates than equally skilled peers still abroad.
- Career offices report employers now ask specific questions about student timelines, work authorization, and the steps needed to file a change of status without triggering the extra cost.
- Universities with large international student populations expect increased recruiter interest. Engineering and computer science programs may see the biggest surge, with business and analytics programs also benefiting.
- Career services and immigration advisers urge students to keep stable status in the U.S. through the H-1B filing window to retain the fee exemption.
The clarification also ripples through India. Indian students already in the U.S. gain improved hiring prospects when the H-1B fee doesn’t apply. Conversely, firms in India that relied on large-scale transfers face higher costs for overseas moves, likely reducing demand for big transfer cohorts. Advisors in India may now recommend U.S. study followed by on-campus recruitment and domestic filings rather than a transfer-based path.
For policymakers in India, this may add pressure to strengthen local education and job pathways to retain top graduates. A more welcoming campus-hiring environment in the U.S. can draw talent out of India’s ecosystem sooner, particularly in areas like AI, cloud, and cybersecurity.
Process and compliance reminders for employers
The basic H-1B filing steps remain unchanged:
– File Form I-129 with the H supplement for the H-1B petition.
– Many employers continue to request premium processing using Form I-907.
– If the employer wants the worker to apply at a consulate, the worker completes the State Department’s online visa application, DS-160.
In all cases, keeping the worker inside the U.S. for a change of status—rather than consular processing—avoids the $100,000 surcharge under the clarified policy.
Official resources:
– USCIS H-1B overview: USCIS H-1B Specialty Occupations, DOD Cooperative Research and Development Project Workers, and Fashion Models
– Form I-129: USCIS Form I-129
– Form I-907 (premium processing): USCIS Form I-907
– DS-160 (nonimmigrant visa application): U.S. Department of State Form DS-160
Immediate operational takeaways
Recruiters summarize three top actions:
– Build fall and spring campus-hiring plans that include international students from day one.
– Coordinate with legal counsel early to confirm change-of-status filings that avoid consular processing and the H-1B fee.
– Educate finance teams about the cost difference between hiring in-country graduates and transferring staff from overseas.
For students, two steps matter most:
1. Keep your U.S. status valid and avoid travel that might force consular processing.
2. Ask employers early about their H-1B strategy—whether they will file a change of status while you remain in the U.S., and whether they intend to use premium processing.
Students should also stay in touch with campus immigration advisers, who can help with OPT, STEM OPT, and cap-gap questions.
Warnings, limitations, and final context
- The $100,000 surcharge does not replace standard H-1B rules or fees. Employers still need an approved Labor Condition Application (LCA) with the Department of Labor and must follow usual compliance steps, including public access files and wage obligations.
- Premium processing remains optional.
- Policy volatility remains a risk. Some students may still require consular processing for family or urgent travel; in those cases, employers must budget for the $100,000 surcharge if the petition is filed on or after September 21, 2025 and no exemption applies.
The broader market trend is clear: companies are moving faster to hire talent already onshore. The fee draws a bright line between domestic hiring and overseas transfers. As a result, on-campus job fairs feel busier, offer rates for international students are rising at some programs, and startups see a clearer path to tapping global talent without the added cost shock.
India’s diaspora networks are adjusting advice accordingly: consider study options, internships, and regional careers that keep doors open. The U.S. remains a top choice, but today’s route favors those who study in the U.S. and shift to H-1B from within the country.
As fall recruiting rolls on, the new policy is reshaping strategy and sentiment. Employers are rewriting playbooks, universities are updating guidance, and graduates are planning with more certainty. For now, the fee line is simple: if you hire and file inside the U.S., the H-1B fee doesn’t apply; if you transfer from abroad, it likely will. That clarity is powering a new wave of campus-hiring—and giving international students a stronger shot at job offers that can turn into long-term careers.
This Article in a Nutshell
A policy clarification announced in late October states the proposed $100,000 H‑1B surcharge will not apply to petitions that change or extend status while the beneficiary remains in the United States. The surcharge instead applies to new H‑1B petitions requiring consular processing for workers outside the country, with the rule effective for filings on or after September 21, 2025. The change reduces a major hiring cost for U.S. companies recruiting international students on campus, prompting earlier offers and a preference for onshore talent. Employers should coordinate with legal counsel to file change‑of‑status petitions from inside the U.S. to avoid the surcharge, while students should maintain valid status and avoid travel that forces consular processing. Standard filing steps (Form I‑129, optional I‑907 premium processing, DS‑160 for consular cases) and compliance obligations remain unchanged. Rare national‑interest exceptions may apply; the fee is not retroactive.
