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H-1B visa shock: New six-figure fee could turn post-graduation work route into costly bet for Indian students
A proposed $103,265 fee for H-1B petitions threatens to complicate the employment pathway for Indian students in the US.
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A proposed six-figure H-1B fee could create a major new hurdle for Indian students in the US hoping to move from F-1 student status to employment after graduation, as the Trump administration seeks to make companies pay $103,265 for certain new H-1B petitions.
The Department of Homeland Security (DHS) proposed the fee on August 24-25, 2026, covering H-1B petitions subject to the annual cap, including cases eligible for the 20,000-visa advanced-degree exemption. The proposal is not yet in effect.
The proposed charge would come on top of other existing H-1B filing costs, potentially making the transition from an international student to an H-1B worker substantially more expensive for employers.
Why Indian students could feel the impact
For many international students, the H-1B lottery is an important route from US education to long-term employment in the country.
Students graduating from American universities can generally work through Optional Practical Training (OPT), subject to the applicable F-1 rules. Employers can then seek an H-1B for workers whose petitions are selected under the annual cap.
That pathway could become more expensive if the proposed fee is finalized.
The proposed $103,265 charge would apply when an employer files a cap-subject H-1B petition after selection in the lottery. It would cover petitions for workers eligible for the advanced-degree exemption as well.
That means an Indian student earning a US master's degree would not automatically escape the proposed fee simply because the student qualifies for the master's-degree H-1B pool.
The important catch: The fee is not in effect yet
Indian students and employers do not have to pay the $103,265 charge today.
The proposal must go through the federal rulemaking process, including a 30-day public comment period, before DHS can decide whether to issue a final rule.
The Federal Register notice describes the measure as a proposed fee for certain H-1B petitions rather than an immediate change to current filing requirements.
This distinction is particularly important for students graduating soon: the proposed rule does not mean every current F-1 student will suddenly receive a $103,265 bill.
The payment would be the employer's responsibility when filing an affected H-1B petition.
How new proposal differs from earlier $100,000 H-1B fee
The proposed fee follows the administration's earlier attempt to impose a $100,000 payment on certain H-1B hires.
That earlier measure was based on a presidential proclamation and primarily targeted H-1B workers seeking to enter the US from abroad. A federal judge later vacated the policy, ruling that the administration lacked congressional authority to impose the charge as a tax. The government appealed the decision.
The new proposal takes a different legal route.
Bloomberg Law reported that the proposed $103,265 fee would extend to cap-subject H-1B petitions filed for workers already in the United States, including people transitioning into H-1B status after studying in the country.
That makes the proposal particularly significant for international graduates.
What happens to the H-1B lottery?
The H-1B program has an annual statutory limit of 85,000 visas, including 20,000 reserved for foreign nationals with qualifying US advanced degrees. Demand has historically exceeded the available supply.
Under the proposed rule, the employer would pay the $103,265 fee after an H-1B petition is selected and filed.
DHS estimates that the fee could generate about $8.8 billion annually, based on approximately 85,000 cap-subject petitions. The agency says the money would support immigration-related operations across several federal agencies.
The proposal could also change employers' willingness to sponsor international graduates. DHS itself estimates that the higher cost could reduce the number of cap-subject petitions filed.
What Indian students should know
For Indian students studying in the US, the key point is that the proposed fee is a potential employer cost, not a new payment that students must make themselves.
However, a six-figure sponsorship cost could influence whether an employer is willing to sponsor an international graduate for an H-1B.
The proposal therefore creates uncertainty around a pathway that many Indian students rely on after completing US degrees.
For now, students can continue to follow the existing F-1, OPT and H-1B rules. Any change would depend on the outcome of the DHS rulemaking process.
