The H-1B $100,000 Fee: What US Employers Are Doing Instead

The H-1B $100,000 fee is defined as a one-time payment that US employers must make to bring a new H-1B worker into the country from abroad, introduced by presidential proclamation in September 2025. As of October 2026, federal courts have blocked it, yet employers are still shifting to offshore hiring, in-country hires, and other visas.

Key Takeaways: H-1B $100,000 Fee Quick Facts

• The H-1B $100,000 fee applies to new petitions for workers outside the US filed on or after September 21, 2025.
• The sponsoring employer pays the fee through pay.gov.
• The White House confirmed it is a one-time payment per petition, not an annual charge.
• Federal courts vacated the fee in June 2026 and September 2026, but appeals and a proposed $103,265 DHS fee keep it uncertain.
• Hiring dedicated remote engineers in India through a staffing partner requires no visa sponsorship.

What Is the H-1B $100,000 Fee?

The H-1B $100,000 fee is a payment required by a September 19, 2025 presidential proclamation before a new H-1B worker outside the US can enter the country. It applies to petitions filed on or after September 21, 2025, on top of standard government filing fees that can already exceed $6,000.

Who Pays the $100K H-1B Fee?

The petitioning employer pays the $100K H-1B fee. USCIS guidance issued in October 2025 directs petitioners to submit the payment through pay.gov. Workers already in the US whose change of status, extension, or amendment is approved are exempt, as are current H-1B visa holders.

Is the H-1B Fee One-Time or Annual?

The H-1B fee is a one-time payment, not an annual charge. White House Press Secretary Karoline Leavitt stated in September 2025 that "This is NOT an annual fee" and that it applies only to the petition. Renewals and current H-1B holders reentering the US do not trigger it.

Is the H-1B $100,000 Fee Still in Effect in 2026?

The H-1B $100,000 fee is currently blocked. A Massachusetts federal court vacated it nationwide in June 2026, and on September 30, 2026, Judge Haywood Gilliam Jr. struck down the policy and its renewal in Global Nurse Force v. Trump. Appeals and a separate DHS proposal keep employers uncertain.

H-1B Fee Impact on Employers: What the Data Shows

The H-1B fee impact on employers was immediate. Overseas sponsorship collapsed within one lottery cycle, IT outsourcing firms cut registrations sharply, and hiring managers still report talent shortages. These numbers explain why employers are rebuilding hiring plans instead of waiting for the courts to settle the H-1B $100,000 fee.

• According to Forbes (2026), employers paid the H-1B $100,000 fee for only about 700 individuals before a federal judge vacated the policy on September 30, 2026.
• According to SHRM (2026), the White House reported that H-1B registrations from the largest IT staffing and outsourcing firms fell 92% after the payment requirement and a weighted selection system took effect.
• According to Bloomberg Law (2026), H-1B lottery entries fell 85% to 100% for the firms most affected by the fee, based on Department of Homeland Security data.
• According to the Penn Wharton Budget Model (2026), about 60.5% of FY 2024 H-1B registrations were for workers outside the US, the group subject to the fee.
• According to Robert Half (2026), 65% of US tech hiring managers say finding skilled talent is harder than a year ago, and 71% of tech leaders say skills shortages delayed projects.

H-1B Alternatives for Employers After the $100,000 Fee

H-1B alternatives for employers are hiring routes that fill skilled roles without a new overseas H-1B petition. Here are the top 5 ways US companies are responding to the H-1B $100,000 fee, from in-country sponsorship to dedicated offshore teams that need no visa at all.

Here Are the Top 5 H-1B Alternatives for US Employers

1. Change of status: Sponsoring F-1 graduates already in the US avoids the fee once approved.
2. L-1 transfers: Companies with offices abroad can move existing employees to the US.
3. O-1 visas: Candidates with extraordinary ability qualify outside the lottery.
4. Nearshore teams: Latin American contractors offer time-zone overlap at higher rates. See our offshore vs nearshore vs onshore comparison.
5. Dedicated offshore staffing: Full-time remote engineers in India with no visa, lottery, or relocation.

H-1B vs Offshore Hiring: Which Costs Less?

The difference between H-1B and offshore hiring is that H-1B brings the engineer to the US at US wages plus government fees, while offshore hiring keeps the engineer in India at local market rates. For most engineering roles, offshore hiring costs less and starts faster.

Our offshore staffing ROI analysis breaks down these savings further.

How to Hire Without H-1B Sponsorship and Avoid the $100,000 Fee

To hire without H-1B sponsorship, US companies can engage dedicated remote engineers in India through a staffing partner that handles recruiting, payroll, and local compliance. The engineer works your hours on your tools, with no visa petition, lottery registration, or H-1B $100,000 fee involved.

How Can US Companies Hire Indian Engineers Without H-1B?

1. Define the role, tech stack, and overlap hours.
2. Choose a partner using our offshore staffing partner checklist.
3. Interview pre-screened candidates and run your own technical test.
4. Sign an agreement covering IP and data security. Review our guide to offshore staffing compliance risks.
5. Onboard the engineer into Jira, GitHub, and Slack.
6. Use the time difference for a 24-hour development cycle.

Real-World Example: A Maryland University Data Engineer Hire

A large Maryland university needed a senior Data Engineer for AI and BI work. Instead of sponsoring a visa, it hired a 10-year engineer in India through Neuhire at $35 per hour, achieving 78% cost savings and more than $232,800 in annual savings. Read the full case study.