Everything you should know about President Trump's H-1B visa fee

The recent presidential proclamation signed by Donald J. Trump on September 19, 2025, has introduced one of the most sweeping changes to the U.S. H-1B visa program in decades. At its core is a requirement that employers pay $100,000 per petition for workers applying for or seeking to re-enter the United States under an H-1B specialty occupation visa unless certain conditions are met.

This move has sparked immediate reactions from industry leaders, immigration lawyers, affected workers, and foreign governments. Below is a comprehensive look at what the new rule entails, its implications, and what remains uncertain.

What Is the H-1B Visa and Why It Matters?

The H-1B visa program allows U.S. employers to temporarily hire foreign workers in specialty occupations—typically those requiring technical or specialized knowledge and a bachelor’s degree or higher in a relevant field. Historically, this has included professions in engineering, computer science, research, healthcare, and academia. Employers apply on behalf of prospective workers; there are also quotas (caps) for how many new H-1B visas are issued annually. Critics of the program argue that in many cases it has been used to hire foreign workers at wage levels below what might be required domestically, undermining job opportunities or wage growth for American workers. Supporters contend that H-1B visas are essential for filling skill gaps, driving innovation, and maintaining U.S. competitiveness globally.

What the Proclamation Says

Here are the key features of this proclamation:

• It was signed on September 19, 2025, and becomes effective at 12:01 a.m. Eastern Daylight Time on September 21, 2025.

• Under the new rule, entry into or reentry into the U.S. of aliens seeking to work under an H-1B specialty occupation is restricted unless their petition is accompanied or supplemented by a $100,000 payment.

• The restriction is especially targeted at those currently outside the United States whose applications or petitions are not accompanied by this payment.

• The proclamation allows exceptions: if the Secretary of Homeland Security determines that hiring certain aliens (or all aliens in a company/industry) is in the national interest, or if they do not pose a threat to U.S. welfare or security, then the payment requirement can be waived.

• It also directs the Departments of State, Homeland Security, and Labor to take additional steps: enforce documentation, verify payment, possibly revise prevailing wage requirements, rule-making to prioritize high-skilled and high-paid workers.

What’s Clear and What’s Not

While many parts of the proclamation are clear, others remain ambiguous or subject to further regulatory guidance.

What seems clear:

• The rule does not apply to H-1B visa holders who are already in the United States prior to the effective date.

• Validly issued H-1B visas before September 21, 2025, are exempt in many reports.

What is still uncertain / subject to change:

• Whether the $100,000 payment is a one-time fee (for example, per petition or per entry/reentry) or annual or recurring, or tied to renewals/extensions. Different officials have given conflicting statements.

• How exactly transfers between employers, or extensions of status, or travel outside then return, will be handled under this rule. Will those count as “reentry” and trigger the fee?

• Details on how the national interest exception will be interpreted, who qualifies, and what industries or companies might benefit.

Why This Change Is Being Made: Administration’s Justifications

This proclamation is not coming out of nowhere; several motivations are cited in the official documents, media reports, and statements:

• Protection of American workers: The administration argues that the H-1B program has been “deliberately exploited” to replace—not just supplement—American workers, particularly by hiring foreign workers at lower wages.

• Wage suppression concerns: That artificially low labor costs have undercut U.S. workers’ wages, especially in STEM fields.

• National security arguments: There are claims that abuses of the program, visa fraud, and certain outsourcing arrangements can pose security risks.

• Incentivizing high-skill / high-wage employment: The proclamation also pushes for rule-making to raise wage levels (prevailing wages) and prioritize more highly paid, more skilled foreign workers.

Impacts: Who Stands to Gain and Who Might Lose

This policy could reshape aspects of U.S. labor, immigration, and business in multiple ways.

Likely winners / those less affected:

• Large companies with deep pockets and already paying high wages might absorb the cost more easily.

• Senior / very specialized foreign workers might still be sponsored under the national interest exception or due to their critical role.

• Domestic workers competing for STEM / tech jobs could benefit if fewer H-1B workers are used as lower-cost hires.

Likely losers / those under pressure:

• Small businesses, startups, outsourcing firms that frequently use H-1B to access skilled but lower-cost labor. A $100,000 fee is a heavy burden for each petition.

• Companies that rely on global mobility—employees traveling outside the U.S. and returning, switching employers, requiring visa renewals, etc.

• Foreign skilled workers, especially from countries with many H-1B applicants (e.g. India, China), may have fewer opportunities or face greater hurdles.

• Academic and research institutions may struggle, especially if budget constraints block them from paying large fees per hire.

Broader Consequences for Economy & Workforce

Beyond immediate winners/losers, there could be macro-effects:

• Innovation & competitiveness: U.S. firms might lose talent or discourage foreign talent from coming, thereby reducing innovation, research, and global competitiveness.

• Talent pipeline effects: International students who hoped to stay on via OPT (Optional Practical Training) then transition to H-1B may see fewer options.

• Labor market distortions: Employers might change hiring practices, rely more on contractors or remote/outsourced talent outside the U.S.

• Legal & administrative burden: Implementation, compliance, audits, appeals, requests for exception (national interest) will likely create complex bureaucratic overhead.

Practical Tips for Affected Workers and Employers

• If you're outside the U.S. and have an H-1B petition or are planning one, consider timing: is it possible to file before the effective date?

• For H-1B holders who travel abroad, weigh risks of reentry under the new rule. If reentry triggers the fee, many may choose to limit travel.

• Employers should re-audit their hiring practices, perhaps reserve H-1B petitions for highest value / essential roles; evaluate whether national interest waiver could apply.

• Explore alternative visa categories for some employees: O-1 (extraordinary ability), J-1, or maybe other paths depending on country.

• Keep an eye on further regulations, agency guidance, court rulings — many details will be fleshed out in coming weeks/months.

Will This Change Last?

Some observations on sustainability / potential for change:

• Since there are unresolved legal questions, lawsuits are likely. Courts may suspend or limit certain provisions if they find overreach.

• Congress might act to affirm, modify, or block parts of this. Immigration policy often is contested.

• Implementation will matter: how strictly the exceptions are used, how transparent the waiver/national-interest process is.

• Public and industry pushback: tech firms, academia, foreign governments will lobby, possibly influence modifications.

President Trump’s $100,000 H-1B visa fee marks a dramatic shift in U.S. immigration policy. It aims to protect American workers, correct what the administration sees as abuses in the H-1B program, and steer the program toward high-skill, high-wage employment. But its implementation, fairness, economic consequences, and legal standing are fraught with uncertainties.

For foreign workers, companies, and the broader tech/ecosystem, the coming months will be critical in seeing how this policy plays out in practice—as well as whether it will endure or be modified.