President Donald Trump signed a proclamation on September 19, 2025, imposing a $100,000 fee for H-1B visa applications.
The new fee requires employers to pay this amount for each petition for workers currently outside the United States, taking effect September 21, 2025. This policy represents the most significant change to the H-1B system in decades.
The article examines the fee structure, exemptions, and implications for employers, workers, and technology companies navigating this immigration policy shift.
What Is The New H-1B Fee? Trump Imposes $100k Fee On H-1B Visas
The proclamation requires a $100,000 payment to accompany H-1B petitions for specialty occupation workers currently outside the United States.
The fee structure operates as follows:
- Payment Amount: $100,000 per new H-1B petition.
- Effective Date: September 21, 2025, at 12:01 a.m. Eastern Daylight Time.
- Responsibility: Employers bear the cost, not workers.
- Application: New petitions for workers outside the United States only.
- Frequency: One-time payment, not recurring annually.
- Exemptions: Renewals and current H-1B holders excluded.
White House officials confirmed the fee applies only to new applications and excludes renewals or current visa holders.
Trump On H1B 2025: What Does 100k H-1B Visa Mean?
The administration aims to address “large-scale replacement of American workers through systemic abuse of the program” which has “undermined both our economic and national security”.
The proclamation states that employers have exploited H-1B regulations to suppress wages and disadvantage American workers.
The policy seeks to “impose higher costs on companies seeking to use the H-1B program in order to address the abuse of that program while still permitting companies to hire the best of the best temporary foreign workers”.
This approach targets what officials characterize as program misuse while maintaining access for exceptional talent.
Trump’s H-1B $100K Fee: Before vs After Amendment
Initial policy announcements created confusion about scope and application. White House clarifications resolved key uncertainties within 48 hours of the proclamation.
| Aspect | Initial (Sept 19) | Clarified (Sept 20-21) |
|---|---|---|
| Who Pays | Employers (confirmed) | Employers only |
| Who’s Affected | Initially unclear | New applicants outside US only |
| Renewals | Initially uncertain | Explicitly excluded |
| Current Holders | Initially uncertain | Explicitly excluded |
| Exemptions | Case-by-case basis | National interest exemptions available |
| Effective Date | September 21, 2025 | Same |
Officials emphasized that current visa holders face no additional charges for re-entry or renewal applications. The clarification addressed widespread concern among existing H-1B workers and their employers.
Supporting data shows “the share of IT workers in the H-1B program grew from 32 percent in Fiscal Year 2003 to an average of over 65 percent in the last 5 fiscal years”.
Additionally, unemployment rates among computer science graduates aged 22-27 reach 6.1 percent, while computer engineering graduates face 7.5 percent unemployment.
These statistics exceed unemployment rates for biology and art history graduates, highlighting labor market challenges in technology fields.
What Is The New Rule For H-1B Visa?
The Secretary of Homeland Security may exempt individuals from the fee requirement if their employment “is in the national interest and does not pose a threat to the security or welfare of the United States”.
However, specific criteria for these Skilled Worker visa H-1B exemptions remain undefined pending DHS guidance. The proclamation mandates enhanced interagency coordination.
Both the Department of Homeland Security and Department of State must collaborate to implement the policy and deny entry to workers whose employers have not made the required payment.
This coordinated approach ensures consistent enforcement across immigration processing stages.
Who Pays The H-1B Visa Fee? Impact On Tech Companies
The new fee increases H-1B sponsorship costs by approximately 5,000 percent compared to previous filing fees.
The proclamation cites specific examples: “One software company was approved for over 5,000 H-1B workers in FY 2025; around the same time, it announced a series of layoffs totaling more than 15,000 employees”.
Additional examples from the official proclamation demonstrate the pattern:
- An IT firm received approval for nearly 1,700 H-1B workers in FY 2025 while announcing 2,400 American worker layoffs in Oregon.
- One company reduced its workforce by approximately 27,000 American workers since 2022 while securing approval for over 25,000 H-1B workers since FY 2022.
- Another company eliminated 1,000 jobs in February while obtaining approval for over 1,100 H-1B workers for FY 2025.
These patterns suggest companies may shift toward domestic hiring or offshore operations to manage increased costs. IT outsourcing firms that historically depend on H-1B workers face particular challenges under the new fee structure.
H1B 100k Fee Impact On Indian Workers
Indian nationals constitute the largest H-1B beneficiary group, with foreign STEM workers in the United States more than doubling “between 2000 and 2019, increasing from 1.2 million to almost 2.5 million”.
The new fee structure particularly affects entry-level positions where Indian professionals often begin their U.S. careers. The policy forces thousands of Indian STEM graduates to reconsider career plans and explore alternative pathways.
Many may pursue O-1 visa special U.S. work visa for individuals with extraordinary ability, though these require different qualification standards. Others might consider opportunities in countries with more accessible skilled immigration programs.
H1B Visa Fees 100k: Do They Apply To Current Holders?
Current H-1B holders receive complete exemption from the new fee requirement. The policy applies exclusively to new applications for workers currently outside the United States. Key clarifications include:
- Renewals: No $100,000 fee applies to any renewal applications.
- Current holders: Valid visa holders pay no additional fees for re-entry.
- Visa transfers: Implementation details await additional guidance.
- Green card applications: Processing remains unaffected by H-1B fee changes.
The White House confirmed through official communications that the proclamation excludes anyone holding current visas. This clarification resolved initial confusion following the policy announcement.
Related Reads:
H1B Visa Proclamation: When Does It Take Effect?
The proclamation became effective September 21, 2025, at 12:01 a.m. Eastern Daylight Time. The restriction operates for 12 months unless extended, with mandatory review requirements.
Within 30 days following the next H-1B lottery, the Secretary of State, Attorney General, Secretary of Labor, and Secretary of Homeland Security must jointly submit recommendations on extension or renewal.
This review process allows for policy assessment and potential modifications.
Legal challenges appear likely as immigration attorneys and business groups prepare to contest implementation procedures and exemption criteria.
The one-year initial term provides time for judicial review and economic impact assessment.
