H-1B $100K Fee Spurs OPT-Driven Bypass to Hire Foreign Talent

(UNITED STATES) The Trump administration’s new visa policy, set to take effect on September 21, 2025, places a steep $100,000 annual fee on each new H-1B petition. The fee is marketed as a way to push companies to hire more U.S. workers in specialty occupations, especially in tech. But across Silicon Valley and beyond, companies are already leaning into another legal channel—OPT (Optional Practical Training)—to keep hiring foreign graduates without paying the new charge.

University career offices report rising employer interest in OPT candidates, and industry recruiters say the pivot reflects a clear cost calculation: OPT carries no comparable fee, no cap, and fewer procedural hurdles. This shift could shape the early careers of U.S. and international graduates, alter campus enrollment trends, and test how far the policy will go in reshaping the tech labor market.

What the new H-1B fee and related changes require

• The fee applies to all new H-1B petitions, with case-by-case exemptions for positions the Department of Homeland Security deems in the “national interest.”
• The administration has directed the Department of Labor (DOL) to adjust prevailing wage levels, a move designed to favor higher-paid, higher-skilled roles.
• Officials say the measures aim to lift wages and open opportunities for American graduates. Critics argue employers will simply hire recent F-1 graduates on OPT for up to three years—especially in STEM fields—then reassess whether to pay the fee later. In effect, the $100,000 price tag could redirect, rather than reduce, the flow of foreign talent into the U.S. tech sector.

Why employers are turning to OPT

• Analysis by VisaVerge.com shows demand for international STEM talent (software engineering, data science, AI) has remained strong despite policy shifts.
• For roles that must be filled quickly, OPT is attractive because:
  • It allows graduates to start work once their employment authorization is approved.
  • It avoids the H-1B lottery and the new $100,000 fee.
  • It has no cap and fewer immediate employer costs.
• If the fee stands only for the planned 12-month period (officials say it will sunset unless extended), some employers may treat it as temporary and rely on OPT until the policy window closes.

“If the Trump administration truly wants to help American tech workers and STEM graduates, it needs to end the OPT program … Otherwise, it isn’t serious about fixing this issue.”
— Post from “US Tech Workers,” an advocacy group for domestic workers

Data and long-term trends

• American Immigration Council data: the share of foreign-born workers in computer and math occupations rose from ~17.7% (2000) to ~26.1% (2019)—much growth tied to students who came for degrees and stayed through OPT.
• H-1B has a statutory cap (85,000 in past years); OPT has no quota and covers a broader range of roles tied to a graduate’s field of study.
• In 2023–24, roughly 242,782 new graduates stayed in the U.S. on OPT permits—far more than the H-1B cap.

These numbers explain why tech employers treat OPT as part of their standard talent pipeline. For large firms the fee changes the math fast; for smaller teams, a six-figure outlay per worker per year can be existential.

How the hiring sequence changes with the fee

• Employers can still file an H-1B petition with USCIS using USCIS H-1B program overview, but must now show proof of paying the $100,000 annual fee before a consular officer will issue the visa.
• The rule includes a narrow national interest exemption to be decided by the Secretary of Homeland Security.
• The administration says the fee will last for 12 months and then be reviewed. DOL revisiting wage levels could raise salary floors for H-1B jobs.
• Those steps together could reduce H-1B hires—either by design or as a side effect.

OPT mechanics and employer obligations

• OPT remains unchanged for now. F-1 students seek post-completion work authorization by filing Form I-765 for an Employment Authorization Document (EAD).
• Standard OPT: up to 12 months. STEM OPT: adds up to 24 months, for a total of up to 36 months.
• OPT:
  • Does not require employer sponsorship in the same way H-1B does.
  • Requires employer participation in E-Verify for STEM OPT and a training plan (Form I-983).
• For many employers, that offers flexibility: onboard graduates quickly, integrate them into product teams, and defer any H-1B decision until later.
• Historically, about one-third of OPT workers later move to H-1B.

Risks and trade-offs for students and employers

For students:
– Plan year-by-year. Apply for OPT early, keep job offers aligned with your field of study, and confirm employer participation in E-Verify if you qualify for the STEM extension.
– Keep documents current: I-20 endorsements, EAD cards, employment reporting to your international office.
– Filing Form I-765 yields the EAD card once approved; any paperwork mistakes can cause weeks or months of delay.

For employers:
– Budget for the $100,000 fee per H-1B hire per year on top of standard filing fees, legal costs, possible fraud-prevention fees, and DOL wage obligations.
– If the fee expires, firms that waited may rush to file. If extended, they may treat it as a new normal.
– DOL wage-level changes could push H-1B salaries higher, influencing internal pay bands.
– Many companies will likely adopt a two-track hiring plan:
1. OPT for near-term roles and onshore graduates.
2. H-1B sponsorship for mission-critical or long-term roles—if budget allows.

Legal and procedural points:
– Consular officers must verify fee payment before issuing visas, adding friction and longer lead times.
– Employers recruiting U.S.-based OPT graduates can often avoid consular bottlenecks because EAD approval allows onshore start.

Competing perspectives and likely consequences

• Advocates for domestic workers argue the OPT shift undermines the fee’s intent; they propose ending or restricting OPT, or subjecting it to wage floors and caps similar to H-1B.
• Business groups warn such changes would harm U.S. competitiveness and push students to countries like Canada 🇨🇦, the UK, and Australia.
• University leaders caution that curtailing OPT would deter international students—especially in STEM master’s programs that rely on international tuition revenue.
• Employers say stricter caps and higher fees could push roles offshore or lead firms to thin out teams.

On-the-ground effects and examples

• A new graduate on OPT might be shipping code within weeks after finals.
• A candidate overseas awaiting H-1B stamping may face months of uncertainty plus added fee verification.
• A startup with 25 engineers may afford the $100,000 fee for one specialist but not for three.
• Public universities worry that a drop in international enrollment will ripple through lab funding and departmental budgets.

Guidance and best practices

• USCIS H-1B program overview for eligibility, specialty occupation standards, and filing steps (the best starting resource for current rules).
• F-1 students should consult their international student offices about OPT eligibility, STEM lists, timing to avoid gaps between graduation and EAD approval, and correct employment reporting.
• Employers should:
  • Ensure compliance teams and counsel are prepared for fee verification and any DOL wage changes.
  • Consider whether roles meet national interest criteria before budgeting for H-1B filings.

Policy changes overview (summary)

• Effective September 21, 2025: $100,000 annual fee on each new H-1B petition, with national interest exemptions and consular verification required. Policy set to expire after 12 months unless extended.
• DOL directed to revise wage levels for H-1B roles, favoring higher-skilled, higher-paid positions.
• OPT remains available: up to 12 months, plus 24-month STEM extension; no cap, no comparable fee.

Impact on applicants and employers (summary)

• U.S. graduates: May see more entry-level offers or continued competition from OPT hires. Wage impacts vary by region and specialty.
• International students: Best practice is to plan around OPT timelines—apply early, ensure job alignment with your degree, and secure E-Verify employers for STEM OPT.
• Employers: Must now factor $100,000 per H-1B hire (if pursued), timing relative to the 12-month window, and evolving DOL wage rules; many will reserve H-1B filings for mission-critical hires.

What to watch next

• Whether the fee is extended beyond 12 months and how DOL finalizes H-1B wage levels.
• Any administration or Congressional moves to limit or end OPT.
• Employer responses: greater reliance on OPT, growth in cap-exempt hiring, or increased offshoring if visa costs rise.

Officials will be pressed to demonstrate whether the $100,000 fee increases hiring of U.S. graduates and raises wages—or whether it mainly shifts hiring toward OPT. Universities will track international applications; tech firms will keep adjusting; and tens of thousands of graduates will make life decisions under a policy that could change again in a year.

For official program details and updates, see the USCIS H-1B program overview at the USCIS website. Employers filing H-1B petitions should use Form I-129, while F-1 students seeking work authorization should file Form I-765 for OPT. These official pages remain the most reliable sources for current requirements, processing steps, and any changes to fees or timelines.

Key practical contrast:
– H-1B: Employers must budget for the $100,000 annual fee, prepare Form I-129, meet wage requirements, and wait for consular verification. Numerical limits remain.
– OPT: F-1 graduates file Form I-765, receive an EAD once approved, work up to 12 months (or 36 months for STEM). No lottery, no cap, no comparable fee; employers must ensure job relevance and E-Verify/training for STEM OPT.

The U.S. has long balanced welcoming talent with protecting domestic workers. Whether this fee triggers deeper reforms to OPT and related programs—or simply reshapes the route by which foreign graduates enter the same jobs—will determine how tech companies hire going forward.