H-1B Visa Update 2025: New US Immigration Rules Benefit H-1B Holders & F-1 Students. If you’re holding an H‑1B visa or are on an F‑1 visa student status in the US, good news: the newest US immigration rules are tilted in your favour. These changes mean fewer financial burdens and smoother status-changes for many international students and skilled workers.
What’s changed in US immigration policy in 2025?
The background of the $100,000 fee
On 19 September 2025, the Donald Trump administration issued a Proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers”. The core effect: Employers sponsoring new H-1B petitioners (especially if beneficiary outside the US) must pay a supplemental $100,000 fee.
Clarifications and exemptions
Later, the U.S. Citizenship and Immigration Services (USCIS) issued guidelines on 20 October 2025 clarifying who is not subject to the fee.
In summary, the exemptions include:
- F-1 students already in the US applying for change-of-status to H-1B.
- Current H-1B holders applying for extension, amendment or change of employer within United States.
- Petitions filed before 21 September 2025.
Who still faces the fee?
If an employer files a new H-1B petition after 21 September 2025 on behalf of a beneficiary outside the US requiring consular notification or entry from abroad, the $100,000 payment applies.
Why this matters to F-1 students and H-1B holders
F-1 to H-1B transition – now smoother
For many international students on F-1 status, converting to H-1B is a key career step. With the fee exemption in place for those inside the US changing status, the cost barrier drops significantly.
H-1B holders – relief from major cost burden
For those already on H-1B status (and their employers), the exemption for extensions or intra-US changes of employer means the $100K fee does not apply, reducing uncertainty and financial risk.
Strategic implications for employers
Employers sponsoring talent already in the US may feel relief; those seeking to recruit from abroad still face the high fee. The distinction is critical for workforce planning.
Key details at a glance
| Item | Status | Implication |
|---|---|---|
| Effective date of Proclamation | 21 Sept 2025 (12 :01 AM ET) | Only petitions after this time incur the fee unless exempt. |
| Fee required | US$ 100,000 per petition (supplemental) | Massive increase from previous regime. |
| Exemption categories | F-1 → H-1B change of status, H-1B extension/amendment, petitions filed before effective date | Favourable for many inside-US candidates. |
| Who still pays | Beneficiaries outside US, new consular processing, new petitions after date | Overseas candidates/entry based filings face cost. |
How to navigate the new rules (step-by-step)
For F-1 students inside the US
- Confirm you are maintaining valid F-1 status.
- Secure a U.S. employer willing to sponsor you for H-1B.
- Employer files Form I-129 “Petition for Nonimmigrant Worker” cap-subject, change status.
- Because you’re inside the US, the $100k fee likely does not apply (if change-of-status).
- Once approved, begin H-1B employment once effective date arrives.
For current H-1B holders or employers
- If you are inside the US on H-1B and need extension, amendment or change employer: the fee exemption applies.
- If employing someone new and outside US, cost risk remains.
- Travel considerations: Leaving the US may trigger need for consular processing and possibly fee.
For employers planning hiring from abroad
- Recognise the $100k fee risk if beneficiary outside US.
- May consider strategy: hire inside US or convert F-1 to H-1B from within.
- Consult immigration counsel for fee-eligibility and audit risk.
Impacts and outlook for 2025 and beyond
For international talent in STEM
Since many H-1B visa holders are in STEM fields, and many F-1 students graduate into STEM roles, these changes support the talent pipeline – albeit with caveats for overseas hiring.
For U.S. employers and economy
Employers may restructure hiring strategies to prioritise internal conversions rather than overseas recruitment. This could reshape global talent sourcing.
What to watch for next
- Proposed rule changes by the Department of Homeland Security on H-1B eligibility, cap exemptions, minimum wages and lottery.
- Whether the fee becomes permanent or further refined.
- Additional student-admission caps or visa-screening changes that may indirectly affect F-1 → H-1B flows.
Tips for making the most of the opportunity
- Ensure you maintain status: F-1 must remain valid until change of status is approved; H-1B holders should avoid unnecessary travel disruptions.
- Choose employers experienced with H-1B filings and aware of fee-exemption criteria.
- Document clearly your inside-US status at time of filing – this determines exemption eligibility.
- For employers: evaluate cost-benefit of hiring abroad vs converting current in-US talent.
- Stay updated: Immigration policy is evolving, and early 2026 may bring further changes.
FAQs
Will this rule save me from the $100K fee if my H-1B is new?
Yes, if you are inside the US and petition is for change of status, amendment or extension. But if you are outside the US and need consular processing, the fee still applies.
Does the fee apply to H-1B renewals?
No — the USCIS guidance indicates renewals for current holders are exemp.
Did this rule affect petitions filed before 21 September 2025?
No — petitions filed before the effective date are exempt from the fee.
Are there nationality-based restrictions or student-caps introduced?
Yes, additionally the rule around student admissions caps (e.g., foreign-student limit) is being discussed and creates future uncertainty.
Conclusion
In summary, the 2025 immigration update delivers meaningful relief for many F-1 students and H-1B holders by exempting them from the hefty $100,000 fee—provided they are inside the United States and apply under change-of-status, extension or amendment. If you’re in either category, you’re likely in a favourable position. However, those seeking entry from abroad or new overseas sponsorships still face elevated costs and risks.
