The $100,000 H-1B Fee: A Benefit for Laid-Off Holders

Employers across the United States 🇺🇸 are recalibrating hiring plans after a new $100,000 one-time H-1B visa fee on initial petitions took effect on September 21, 2025, shifting incentives in a way that could unexpectedly aid laid-off tech workers who already hold valid H-1B status. Because the fee applies only to new H-1B filings, and not to renewals, re-entries, or transfer petitions, companies seeking to fill critical roles quickly may now view recently laid-off H-1B professionals as a faster, cheaper, and lower-risk option. Immigration attorneys and recruiters say the policy could turn an otherwise tough job market into a short window of opportunity for this specific group—provided they move fast and meet strict timing rules tied to their visa status.

Why transfers matter now

At the center of this change is a simple divide: new H-1B applications filed after the policy start date trigger the $100,000 H-1B visa fee, while existing H-1B holders seeking to change employers through transfer petitions do not. For thousands of H-1B professionals impacted by ongoing job cuts in the tech sector, that distinction alters the hiring math.

A company that might have hesitated to sponsor a brand-new H-1B candidate now has a clear financial reason to consider someone already in H-1B status—especially when the hire can happen without the lottery and without the large new charge.

According to analysis by VisaVerge.com, the new fee structure “creates a ready-made incentive for employers to prioritize workers who can move on a transfer.” Recruiters say they’re already hearing from employers who want to know how quickly a transfer petition can be filed and when the worker could start.

Industry voices see the short-term advantage clearly:

“Some of the ones laid off might be getting a call back,” said Navneet S. Chugh, attorney at U.S.-based immigration firm Chugh LLC, describing recently laid-off H-1B professionals as a “ready-to-deploy talent pool.”
Sachin Alug, CEO of NLB Services, a large recruitment firm, added that firms able to move quickly—and follow compliance rules closely—are likely to find these candidates especially appealing due to speed and lower cost.

Timing constraints: the 60-day grace period

Workers on H-1B status who lose their jobs typically enter a 60-day grace period. During that period, they must either:

• find a new employer willing to file a transfer petition,
• secure another lawful status, or
• depart the country.

The new fee policy increases the likelihood that employers will consider them, but the grace window is still tight. Delays can cost workers their status. In practice, that means job seekers often must organize reference letters, line up interviews, and prepare documents within days—not weeks—after a layoff.

Layoff context and demand

The policy is landing during a volatile period for the sector. In 2025, the tech industry has seen 533 layoff rounds affecting about 144,926 workers, according to monitoring platform Trueup. That follows an even larger wave in 2024, when 1,115 rounds of cuts affected 238,461 professionals.

Large employers affected include Amazon, Microsoft, Oracle, Intel, and AWS, and cuts have disrupted engineering, cloud, and product teams. Many of those roles remain in high demand, which makes the transfer pathway more attractive for both employers and candidates when urgent projects or pivots open headcount.

How employers are responding

While the new H-1B visa fee is steep enough to dampen some fresh sponsorships, the transfer channel allows companies to keep building teams without adding major upfront costs. Recruiters say they’re advising clients to:

• map current openings against available H-1B talent in the market,
• prioritize candidates who can move quickly on transfers, and
• time offers and start dates to avoid status gaps during the 60-day window.

Hiring managers and legal teams are checking that posted job descriptions, wages, and worksites align with corporate policies and immigration requirements to speed filings.

Who benefits—and who doesn’t

The policy’s carve-out for existing H-1B holders compounds a longstanding difference between hiring pathways. Key contrasts:

• New candidates—especially those outside the country—face the lottery and now the $100,000 fee for initial petitions filed after the effective date.
• Workers already in valid H-1B status who transfer do not trigger the fee or the lottery.

Because of this, cost-sensitive, deadline-driven, or lottery-wary employers are more likely to look inward to U.S.-based talent on valid status than outward to brand-new candidates.

Immigration counsel caution the “silver lining” is limited:

• Only those already in the U.S. on valid H-1B status benefit from the transfer path.
• The 60-day grace period forces tight decision-making.
• Employers may hesitate due to compliance reviews, audit concerns, or optics around hiring noncitizens amid layoffs.
• Larger firms with legal infrastructure and budgets are likelier to evaluate and complete transfers rapidly; smaller firms may struggle.

Policy changes overview

• Effective date: September 21, 2025.
• New rule: $100,000 one-time fee on new H-1B visa petitions.
• Exemptions: renewals, re-entries, and transfer petitions for existing H-1B holders are not subject to the fee.

That split is the main reason laid-off H-1B professionals may see a hiring boost: they can move to a new employer through a transfer, avoiding both the lottery and the new charge.

Operational shifts and hiring tactics

Common employer steps to accelerate transfers:

1. Confirm role duties, pay, and worksites are clear before starting paperwork to reduce delays.
2. Communicate early with candidates about required documents so files are complete when ready to proceed.
3. Map critical projects and deadlines against hiring timelines to avoid needing a new H-1B case that triggers the $100,000 fee.

Tactics seen in the market:

• Asking candidates early whether they hold current H-1B status and can join on a transfer; a “yes” often moves candidates to the top of shortlists.
• Testing limited-duration contracts or “returnship” programs to onboard talent quickly while longer-term budgets are finalized.
• Prioritizing hires for urgent delivery roles (cloud migration, AI integration, privacy engineering, enterprise product support).

Practical advice for laid-off H-1B professionals

Actionable playbook:

• Act in days, not weeks. The 60-day grace period is short.
• Lead your pitch with cost and speed: emphasize that a transfer petition avoids both the lottery and the H-1B visa fee.
• Target large firms first; they typically process transfers faster.
• Keep backup routes in mind (roles based elsewhere, other legal status paths, or international options).
• Prepare documentation: prior approvals, pay records, and reference letters should be organized and ready.

Recruiters recommend placing current H-1B status and transfer eligibility near the top of resumes and early emails to hiring teams.

Risks, geographic skew, and ethical considerations

Risks and headwinds:

• Employers may be cautious about public reaction to hiring foreign workers during layoffs and may slow hiring to document domestic recruitment efforts.
• Smaller firms, consultancies, and startups may cut back on new sponsorships due to the high fee, concentrating opportunities among larger, well-funded companies.
• Regions with many large tech employers (Seattle, Bay Area, Austin, Northern Virginia) are better positioned to absorb transfers quickly; mid-sized tech hubs may see fewer openings.

Ethical trade-offs:

• Hiring managers must balance cost-saving and speed against optics and corporate governance.
• The new fee pushes some firms toward hiring already-in-status H-1B workers, a practical choice that raises broader questions about mobility and access for candidates outside the U.S.

Short-term outlook and what to watch

The immediate question is how long the advantage for transfer-ready candidates will last. Possibilities:

• If transfer-driven hiring rises sharply, demand for laid-off H-1B workers could shorten job searches and stabilize careers.
• If compliance worries or budget freezes slow transfers, the window may narrow.

Either way, the policy shifts the center of gravity from brand-new H-1B sponsorships toward experienced professionals already in the United States and ready to move when an employer files a transfer petition.

For official background on the visa category, eligibility, and process, readers can consult the USCIS H-1B overview: USCIS: H-1B Specialty Occupations.

Key takeaways

The new $100,000 H-1B visa fee favors hires via transfer petitions. For laid-off H-1B workers already in the U.S., that creates a time-limited opportunity—if employers and candidates move fast and keep documentation ready within the 60-day grace period.

Practical final notes:

• Candidates should be upfront about transfer eligibility and prioritize speed and documentation.
• Employers should align HR, legal, and hiring teams to act quickly while maintaining compliance.
• The policy creates a clearer, cheaper pathway for filling urgent roles—but it disadvantages workers seeking new initial H-1B sponsorships outside the U.S.

For now, inboxes and interview queues reflect the change: talent teams increasingly ask, “Are you already on H-1B and able to transfer?” Those who can answer yes are more likely to reach offer calls faster—provided both sides keep the clock and compliance in mind.