From F-1 to H-1B: A Practical Guide for U.S. Employment

(UNITED STATES) The U.S. government has unveiled a sweeping set of changes to the H-1B program that are already reshaping how international students on the F-1 visa move from campus to the workforce. The most dramatic shift is a new $100,000 fee for new H-1B petitions, set to take effect at 12:01 a.m. EDT on September 21, 2025, a cost that employers must pay when seeking to bring in a new H-1B worker. Students using OPT—the work period available after graduation—now face a transition that will likely hinge more on employer budgets and wage levels than in past years.

How selection is changing

Officials have advanced a major policy pivot away from a purely random lottery. Under a move described by federal agencies and lawmakers, the selection process is expected to:

• Favor higher wages and stronger credentials
• Weight some registrations more heavily based on wage tiers tied to the job’s required level

While final implementation details will be closely watched, the message for graduates is clear: better-paid roles and advanced qualifications may carry a higher chance of H-1B selection. That signals tougher odds for entry-level placements, especially in sectors where starting salaries are lower.

What the H-1B covers and the usual process

The H-1B visa remains the main skilled work pathway for many foreign graduates, covering “specialty occupations” that normally require at least a bachelor’s degree in a specific field. Key points:

• Employers must sponsor the petition.
• Most positions fall under the annual cap (roughly 65,000 general + 20,000 for U.S. advanced degree holders).
• Candidates typically enter a spring registration window.
• If selected, the employer files the full petition using Form I-129 — the official USCIS petition for a nonimmigrant worker: https://www.uscis.gov/i-129.
• Start dates usually align to October 1.

Financial and operational effects on employers

Because the change adds $100,000 on top of existing legal and filing costs, company decisions could shift fast.

• Large, established firms may absorb the cost.
• Startups and smaller employers could scale back on sponsoring new graduates, especially in low-margin fields.
• Employers using third-party placements or outsourcing may face additional pressure due to:
  • Stricter wage rules
  • Tighter oversight
  • Clearer restrictions on sending H-1B workers to client sites

The combined effect, reflected in reform proposals and agency guidance, is a system that directs visas toward higher-paid roles and employers with deep compliance capacity.

Immediate impact on F-1 students and OPT holders

For students on the F-1 visa, the practical stakes are immediate.

• Most complete studies, move into OPT, and may seek the 24-month STEM OPT extension, taking total work authorization to up to 36 months.
• That period has served as the bridge to an H-1B filing, but now the bridge requires:
  • Longer lead times
  • Stronger employer commitments
  • Closer attention to wage levels

International students who land higher-salaried roles could see better odds under a wage-weighted process. Those in entry-level or lower-paid specialty jobs may find the path narrower, even if they meet all qualifications.

Timeline and cap-gap considerations

Typical timeline:

1. Students graduate and start OPT.
2. They enter the H-1B registration window (typically in March).
3. If picked, employers file Form I-129.
4. If approved, new status usually takes effect around October 1.

Important notes:

• If OPT expires before October 1, some students may benefit from a cap-gap extension that carries work authorization forward until the H-1B start.
• Under the new regime, those not selected may need to:
  • Rely on the STEM OPT extension if eligible
  • Enroll in a new study program
  • Seek other visa categories

Enforcement, wage rules, and legislative proposals

Policy drafts and commentary point to tougher wage definitions and enforcement:

• Employers will be expected to certify wage levels that meet or exceed prevailing wages for occupation and location.
• The goals include avoiding displacement of U.S. workers and boosting pay.
• Proposals such as the “H-1B and L-1 Visa Reform Act of 2025” signal:
  • Stricter wage floors
  • Job posting duties
  • Increased audits and penalties for misuse
  • Higher fines and potential disbarment for repeat violators

Whether every element becomes law will depend on formal adoption and rulemaking, but the trend is clear: more scrutiny and higher costs.

Scope and timing of the $100,000 fee

The new $100,000 fee applies to new H-1B petitions filed on or after the effective date.

• Filings made before that time, and petitions for existing H-1B holders (extensions or amendments), are generally outside the fee’s scope.
• Timing matters for employers budgeting sponsorships across fiscal years.
  • Some may accelerate filings before the effective date.
  • Others will wait for additional guidance on exemptions and implementation.
• In both cases, hiring teams are revisiting staffing plans and HR budgets to account for the fee plus higher wage commitments.

How students are changing job search strategies

Students and recent graduates in the OPT window report changing tactics:

• Focusing on employers with a track record of sponsorship and internal legal teams.
• Weighing role selection by offered wage level because it might affect selection chances.
• Prioritizing direct-hire positions with higher salaries over cap-subject roles routed through third parties.

Staffing trends indicate direct-hire, higher-salary roles may take priority.

Industry and international perspectives

According to analysis by VisaVerge.com, employers in technology, outsourcing, and third-party staffing are reevaluating:

• Pipelines
• Cost models
• Reliance on the H-1B channel

The extra $100,000 changes the calculus between sponsoring a new graduate and recruiting domestically. Industry associations abroad warn the shift could make the U.S. less attractive for global talent entering their careers, even if senior specialists and advanced degree holders still find routes through higher-paid positions.

The Indian context

India is the largest source country for H-1B recipients, particularly in engineering and technology.

• Higher costs and wage-weighted selection may reduce entry-level placements tied to Indian candidates, especially via smaller firms.
• Employers may favor senior or specialized profiles commanding higher pay.
• This may push graduates to upskill and specialize.
• Observers note a potential shift toward remote work from India, with U.S. companies tapping talent without sponsorship in the short term.

Stakeholder reactions and policy debate

Advocacy groups and business leaders argue the combined effect of higher costs and tighter selection could undercut U.S. competitiveness. Their points:

• The H-1B channel fills niche skill gaps for innovation-intensive industries.
• Reforms might reduce access to early-career global talent.

Policymakers counter that the reforms:

• Target misuse
• Lift wages
• Encourage hiring into roles reflecting true specialty demand

Attorneys expect an adjustment period as selection patterns, compliance checks, and employer strategies settle into a new normal shaped by pay levels and petition budgets.

Practical advice for F-1 students

One recurring theme: start early and keep status clean.

Recommended steps:

• Align OPT start date, potential STEM OPT extension, and the cap registration window.
• Meet career services and international offices sooner rather than later.
• Target employers known for H-1B sponsorship and request offer packages that reflect market wages.
• Track status rules closely:
  • 90-day unemployment limit on standard OPT
  • STEM OPT reporting obligations
  • Terms of any CPT used during the degree program

None of these rules changed under the new measures, but any status lapse can complicate later petitions. When selected, filing Form I-129 (see https://www.uscis.gov/i-129) and aligning the start date to October 1 remain core milestones. Cap-gap relief may bridge the summer months for some, but it depends on timely selection and filing.

“Start early, keep status clean, and prioritize employers with sponsorship experience,” is the practical takeaway many advisers are sharing with students.

What to expect in coming cycles

The next several application cycles will test the reforms’ effect:

• If wage-weighted selection is implemented, expect shifts toward higher salaries and advanced degrees among selected registrations.
• If the $100,000 fee causes smaller sponsors to pull back, recent graduates may see fewer offers that include H-1B support.
• Some large firms may concentrate on sponsoring fewer candidates at higher pay, focusing on roles with clearer ROI.

For now, students and employers are bracing for a transition that demands:

• More planning
• More funding
• More attention to role design

The F-1 visa, OPT, and H-1B pipeline is still open, but each link carries higher stakes. With months to go before the fee takes effect, hiring managers and international offices are updating playbooks, and graduating students are revising job search strategies with wage levels and sponsorship history in mind. The outcome will shape not only this year’s cohort but the pipeline of high-skilled workers that U.S. companies rely on, with ripple effects across campuses and the global labor market.