$100,000 H-1B Fee: Proclamation Extended, Courts Block Enforcement—What International Students Need to Know About Staying in the U.S. After Graduation

2026-10-04 · Guides

On September 18, 2026, Presidential Proclamation 11069 extended the $100,000 H-1B fee to September 21, 2027; however, federal courts in Massachusetts and California have successively vacated the agency policies enforcing this fee, so it is currently not being collected. DHS has separately proposed a fee of $103,265. This article explains the applicability to F-1 students changing status to H-1B within the U.S.

Bottom line: As of October 4, 2026, the $100,000 H-1B fee is legally delayed but not actually being collected. The President signed Proclamation 11069 on September 18, extending this restriction until September 21, 2027; however, two federal district courts have since vacated the agencies' policies enforcing this fee, and USCIS has stated it will comply with the court orders. For F-1 students studying in the U.S., there is another key point: according to USCIS, those who change status from F-1 to H-1B within the U.S. and have the change of status approved are not subject to this $100,000 fee in the first place.

But the story doesn't end here. The government is appealing, and the Department of Homeland Security (DHS) has separately proposed a new $103,265 fee with a different scope than the $100,000 fee. Details below.

Where the $100,000 Fee Came From

On September 19, 2025, the President signed Proclamation 10973, restricting the entry of certain H-1B workers unless the employer pays $100,000 for the petition.
It took effect at 12:01 a.m. (EDT) on September 21, 2025, and is valid for 12 months.
According to Proclamation 11069, after the 2025 proclamation took effect, over 700 petitions have already paid this fee.

Who Has to Pay and Who Doesn't (Key Points from USCIS)

The USCIS H-1B page (last updated on September 21, 2026) outlines the scope of application, which is the key reference for determining whether international students are affected.

When it applies:

Petitions filed at or after 12:01 a.m. on September 21, 2025, where the beneficiary is outside the U.S. and does not have a valid H-1B visa.
Petitions where the beneficiary is in the U.S., but the petition requests consular notification, port of entry notification, or pre-flight inspection (meaning they must leave the country to get a visa and re-enter).
Petitions for change of status or extension where USCIS determines the beneficiary does not meet the requirements for a change of status. Examples given by USCIS include: the beneficiary was no longer in a valid status at the time of filing, or left the U.S. before the change of status petition was approved.

When it does not apply:

Petitions filed before September 21, 2025, and H-1B visas that have already been issued and remain valid.
Petitions for amendment, change of status, or extension for individuals inside the U.S. that are approved. If the beneficiary travels abroad after approval and obtains a visa based on the approved petition or re-enters using a valid H-1B visa, they will not be considered subject to this fee.
Normal entry and exit with a valid H-1B visa are unaffected.

Applying these rules to international students:

Scenario	Subject to the $100,000 fee? (Per USCIS)
Working in the U.S. on OPT/STEM OPT, selected in the lottery, and employer files for a change of status from F-1 to H-1B within the U.S., which is approved	No
Leaving the U.S. before the change of status is approved	Yes
Status has expired at the time of filing, and the change of status is not approved	Yes
Employer chooses consular notification, requiring the beneficiary to leave the U.S. to obtain an H-1B visa	Yes
Already graduated and returned home, with an H-1B petition filed from within China	Yes

Important note: The table above reflects the scope of the proclamation itself. As of October 4, the agencies' policies enforcing this fee have been vacated by the courts, and USCIS is not actually collecting it.

Two Lawsuits: Why the Fee Is Not Currently Being Collected

Massachusetts: State of California et al. v. Mullin

On June 8, 2026, the U.S. District Court for the District of Massachusetts vacated the agencies' guidance enforcing the $100,000 fee (State of California v. Mullin).
The government requested the First Circuit Court of Appeals to stay this ruling pending appeal, which was denied on July 24.
USCIS stated on its page that while DHS disagrees with the court order, it will comply while considering next steps; if the order is later overturned, DHS still plans to collect the fee. The appeal is ongoing.

Northern District of California: Global Nurse Force v. Trump

On September 30, 2026, Judge Haywood S. Gilliam Jr. of the U.S. District Court for the Northern District of California issued a ruling (Case No. 4:25-cv-08454), vacating the policies of USCIS, Customs and Border Protection (CBP), and the Department of State enforcing this fee, and enjoining the agencies from enforcing it.
This ruling covers both the 2025 proclamation and the recently signed extension proclamation in September. The court also denied the government's request to stay the ruling pending appeal.
The court ruled that for the agencies to resume enforcement, they must first complete the notice-and-comment rulemaking process required by the Administrative Procedure Act.
The court did not rule on whether the President exceeded his authority in issuing the proclamation itself; it only vacated the agencies' enforcement policies.

This means there are currently two court rulings blocking the $100,000 fee. However, the outcome of the appeals and whether the agencies restart the rulemaking process could change the situation.

Proclamation 11069: Extended to September 21, 2027

On September 18, 2026, the President signed Proclamation 11069 (published in the Federal Register on September 23). Key points:

Extends the restrictions from the 2025 proclamation for another 12 months, starting from 12:01 a.m. on September 21, 2026, and expiring on September 21, 2027, unless extended again.
The $100,000 amount and the exception mechanism (exemptions for individuals, companies, or industries deemed by the Secretary of Homeland Security to be in the national interest) remain unchanged.
Requires agencies to submit recommendations on whether to extend it further within 30 days after the next H-1B lottery.

The proclamation also cited a set of data: in the FY 2027 H-1B registrations, the proportion of beneficiaries holding at least a U.S. master's degree rose from 45.1% the previous year to 66.1%. This is related to the "weighted selection" rule released by DHS on December 29, 2025, which was implemented in the FY 2027 lottery, favoring positions with higher wage and skill levels.

DHS Alternative: Proposed $103,265 New Fee

This is a change international students need to pay closer attention to.

On August 25, 2026, DHS published a proposed rule in the Federal Register titled "Fee for Certain H-1B Petitions" (91 FR 54817), proposing an additional $103,265 fee for H-1B petitions.
Scope: All cap-subject H-1B petitions, including those using the advanced degree exemption. Cap-exempt petitions (e.g., for universities and similar institutions) are not subject to this fee.
Relationship to the $100,000 fee: The two are based on different legal authorities and are separate fees. The proposal states that if a petition is subject to both, both fees must be paid.
Status: The public comment period closed on September 24, 2026. As of October 4, this is only a proposal and has not taken effect; it does not need to be paid at this time.

Why should international students pay closer attention to this? The $100,000 proclamation is an "entry restriction" and does not apply to those who have their change of status approved within the U.S. In contrast, the text of this proposal targets all cap-subject petitions, without distinguishing whether the beneficiary is inside or outside the U.S. like the proclamation does. Most F-1 graduates apply for H-1B through the lottery, which falls exactly under cap-subject petitions. If it is finalized in its current form, the cost for employers to file H-1B petitions for OPT students will increase significantly. Whether the final rule will be modified, when it will take effect, and whether it will be sued again remain uncertain.

What This Means for Students Hoping to Stay in the U.S. After Graduation

Changing status within the U.S.: the current path remains unchanged. Those working on OPT/STEM OPT who are selected in the lottery and change to H-1B status within the U.S. are not subject to the $100,000 fee, according to USCIS.
Avoid traveling abroad while your change of status is pending. Leaving the U.S. before approval will be considered as not meeting the requirements for a change of status, thus falling under the scope of the $100,000 fee. If travel is necessary, confirm with your employer and their immigration attorney first.
Maintain continuous valid status. If your status has expired at the time of filing, you may also fall under the scope. Plan ahead for your OPT end date, unemployment days, and STEM OPT extension.
Keep an eye on the $103,265 proposal. Once it takes effect, employers' cost considerations will change, and some companies may be more cautious about filing H-1B petitions for new hires. Cap-exempt employers (such as universities and certain research institutions) are not covered by the proposal.
Don't put all your eggs in one basket. STEM majors have a 24-month STEM OPT extension, giving them more lottery chances; you can also consider employment pathways in other countries or regions simultaneously.

This article is for informational purposes only and does not constitute immigration or legal advice. H-1B petitions are filed by employers; for specific situations, please consult your employer and their immigration attorney. The information above is current as of October 4, 2026. For policies, please refer to the latest official information from USCIS, the White House, and the courts.

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