On September 19, 2025, President Donald Trump signed a proclamation introducing significant changes to the H-1B visa program. The most notable alteration is the imposition of a one-time $100,000 fee for each new H-1B petition filed for foreign nationals outside the United States. This move aims to curb perceived abuses of the H-1B system and prioritize the hiring of American workers. The policy took effect on September 21, 2025, and has already sparked widespread concern among tech companies, foreign professionals, and immigration advocates.
The new fee applies exclusively to new H-1B petitions for individuals outside the U.S., not to current visa holders or those seeking renewals. While the administration asserts that this measure will reduce reliance on foreign labor, critics argue it could lead to a brain drain and disrupt industries that depend on specialized skills. Legal challenges are anticipated, and companies are reassessing their hiring strategies in light of these changes.
Understanding the $100,000 H-1B Visa Fee
Effective from September 21, 2025, U.S. employers must pay a one-time $100,000 fee for each new H-1B petition filed for a foreign national outside the United States. This fee is in addition to existing application costs and applies solely to new petitions; renewals and current visa holders are unaffected. The administration justifies this fee as a deterrent against the outsourcing of American jobs and a means to encourage companies to hire domestically.
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Exemptions and Clarifications
The $100,000 fee does not apply to individuals already holding an H-1B visa or those seeking to renew their status. Additionally, the fee is not applicable to petitions filed before the effective date. However, the policy has led to confusion regarding travel and re-entry for current visa holders. Companies like Amazon and Microsoft have advised employees abroad to return to the U.S. promptly to avoid potential complications.
Impact on Employers and Foreign Workers
This policy significantly increases the cost of hiring foreign talent, particularly affecting small and mid-sized companies that may struggle with the financial burden. Indian IT firms, which have historically been major beneficiaries of the H-1B program, are among the hardest hit. Stock prices for companies like Mphasis and LTIMindtree have declined sharply following the announcement.
Legal Challenges and Industry Reactions
The new fee structure has faced criticism from various quarters. Legal experts argue that the fee lacks a statutory basis and may face court challenges. Industry groups, including major tech firms such as Amazon and Microsoft, have urged the U.S. government to reconsider the fee. Conversely, some industry figures, like Netflix co-founder Reed Hastings, have supported the change, suggesting it could create a more merit-based system.
Preparing for the Changes
Employers and foreign professionals affected by these changes should consult with immigration attorneys to understand exemptions and navigate the application process. Reevaluating hiring strategies and staying informed about legal developments are crucial steps in adapting to the new landscape.
