US H-1B Proposal: $103,265 Fee Could Apply Even to OPT-to-H-1B Change of Status

The US government has proposed raising the per-worker H-1B cost to $103,265 in filings dated August 2026. The change hits Indian OPT holders trying to switch to H-1B with a private employer. Universities and non-profit research bodies stay exempt. The proposal builds on the September 2025 presidential proclamation that imposed a $100,000 supplemental fee.

• 72% of approved H-1B petitions in FY2024 went to Indian nationals, per USCIS data. That is the largest single-country share.
• The $103,265 total combines the new $100,000 supplemental fee with existing statutory H-1B charges, per the proposal text.
• Cap-exempt employers, including universities, government research labs and affiliated non-profits, stay outside the fee. That protects academic and postdoc hiring.

The change lands hardest on Indian students already inside the US on Optional Practical Training. OPT lets STEM graduates work in the US for up to three years after their degree. Moving onto H-1B is the standard path to staying long term. That switch now carries the same $103,265 premium as a fresh overseas hire.

Also check, 

• How to Convert OPT to H-1B: Application Process and Cost
• Types of Visa in the USA for Indian Students: Complete Guide
• Northwestern Tells Students: Enter US Before Sept 15 OPT
• Optional Practical Training (OPT) for F-1 Students

What the $103,265 Figure Actually Covers

The headline number bundles one large new charge with existing H-1B costs. The $100,000 supplemental fee from the September 2025 presidential proclamation makes up the bulk. Standard statutory items add the remaining $3,265, per the proposal text.

How the Fee Hits Indian OPT Holders Switching to H-1B

OPT lets Indian STEM graduates work in the US for up to three years after graduation. The standard next step is a change of status to H-1B, filed by the employer in the March cap lottery. The proposal treats these in-country change-of-status filings the same as fresh overseas petitions. Employers must pay the full $103,265 to move an OPT worker onto an H-1B.

USCIS data shows Indian nationals received 72% of approved H-1B petitions in FY2024. Most were students converting from F-1 OPT status. The fee lands squarely on this cohort. At an Indian salary benchmark, $103,265 is close to what a senior engineer at TCS or Infosys earns over six to seven years.

Also check, 

• US Visa Appointment Dates 2026 for Indian Students
• I-20 Form Guide for Indian Students: Complete Explanation

Who Stays Exempt and Why Universities Get a Pass

The proposal keeps the cap-exempt category already recognised under existing H-1B law. That covers:

• Institutions of higher education, meaning US universities and colleges.
• Non-profit organisations affiliated with those institutions, such as teaching hospitals.
• Non-profit and governmental research organisations, including federal laboratories.

Indian PhD graduates hired as postdocs, university research associates or teaching faculty face no supplemental fee. Their employers file at the pre-2025 cost base. Cap-exempt filings also skip the March lottery, so hiring can happen year-round.

Reaction from Indian IT Firms and US Immigration Lawyers

Indian IT services firms have been the largest single group of H-1B sponsors. TCS, Infosys, Wipro, HCLTech and Cognizant together filed for tens of thousands of petitions in FY2024. Services delivery models built on rotating cohorts of H-1B engineers cannot absorb a $103,265 per-head bill at scale. US-based immigration bar associations have flagged the change as pricing out mid-size employers. Formal industry positions are expected during the public comment window.

What Should Indian OPT Holders Do Next?

The core action is to lock in employer commitment now, not after the rule takes effect. Sponsors that quietly withdraw from H-1B hiring rarely say so publicly. See the USCIS H-1B specialty occupations page for current filing categories and cap-exempt rules.

Indian OPT graduates now face the sharpest H-1B cost jump on record. The $103,265 per-worker bill lands on employers, but the risk of losing status lands on the student. The September 2025 proclamation is already in force. This proposal only formalises how the fee reaches change-of-status filings from inside the US.

Action Plan for Indian OPT Holders

1. Confirm your OPT or STEM OPT expiry date and note the 60-day grace window that follows.
2. Ask your employer in writing whether they will fund the full $103,265 if the rule takes effect.
3. Line up a backup offer from a cap-exempt employer such as a university, teaching hospital or federal lab.
4. Speak to a US immigration attorney about O-1 or EB-2 NIW alternatives before OPT ends.
5. File a public comment on Regulations.gov during the notice-and-comment window if you are affected.

Also check, 

• US Bill Proposes OPT Elimination and H-1B Pause
• Indians Hold 71% of US H-1B Visas — Yet F-1 Issuances to Indian Students Fell 69% in 2025
• US Clarifies $100000 H-1B Visa Fee Rules