On September 19, 2025, the Trump administration announced a new policy imposing a $100,000 annual fee on H-1B visa applications through a presidential proclamation. The proclamation, which went into effect on September 21, 2025, has sparked considerable discussion and confusion among immigrant workers and employers.

Key Aspects of the Proclamation

The H-1B visa program allows companies in the U.S. to employ foreign workers in specialized occupations that require theoretical or technical expertise. These occupations often include fields such as IT, healthcare, engineering, science, and education. The H-1B visa is typically granted for an initial period of three years and can be extended up to a maximum of six years.

The new proclamation introduces a significant change to the H-1B visa application process. Key provisions of the proclamation include:

• New $100,000 Fee: Employers are now required to pay a one-time fee of $100,000 for each new H-1B petition. It remains unclear whether this fee is in addition to or replaces existing fees, which can range from $1,700 to $4,500, depending on the visa's processing speed. These existing fees include a $215 H-1B lottery registration fee and a $780 petition filing fee.
• Higher Wage Standards: The Department of Labor (DOL) is directed to revise wage rules to increase the required salaries for H-1B workers. This measure aims to ensure that H-1B workers are not hired at below-market rates compared to U.S. workers.
• Increased Scrutiny: The Trump administration states that these measures are intended to protect U.S. workers and crack down on perceived misuse of the H-1B lottery system.
• Clarification on Applicability: The White House clarified that the $100,000 fee applies only to new H-1B visa applicants and not to renewals or current visa holders. Those who already hold H-1B visas and are currently outside of the country will not be charged the fee to re-enter the U.S.

Rationale Behind the Fee

The Trump administration claims the increased fee is necessary to prevent the abuse of H-1B visas, which they believe leads to the undermining of American wages and the outsourcing of IT jobs. The administration aims to encourage companies to prioritize hiring American workers. White House spokesperson Taylor Rogers stated that the fee reflects President Trump's promise "to put American workers first" by discouraging companies from "spamming the system and driving down American wages". Commerce Secretary Howard Lutnick suggested the $100,000 fee would deter companies from using the program for entry-level employees and incentivize them to reserve it for "the great engineers" and "impressively detailed executives".

Impact and Reactions

The announcement of the $100,000 fee has generated a mixed bag of reactions from various stakeholders.

• Potential Economic Consequences: Economists have warned that the move could weaken economic growth by making it more difficult for employers to attract foreign talent. They also point to the possibility of a "brain drain" as skilled international graduates may be forced to leave the U.S.
• Impact on Skilled Workers: For international professionals, particularly those in STEM fields, the new fee could make the H-1B visa inaccessible. Early-career workers, recent graduates, and those in lower-paying industries may see their U.S. work opportunities diminish as employers may reserve H-1Bs for only the most critical or senior roles.
• Response from India: Indian officials have expressed concerns that the fee would have humanitarian consequences due to the disruption caused for families. They emphasized that the exchange of skilled workers has greatly contributed to both nations.
• Support for the Measure: Netflix co-founder Reed Hastings praised Trump's move, stating that the added cost would allot visas for "very high-value jobs," eliminate the lottery, and provide employers with more certainty.
• Industry Concerns: The new fee is likely to have a "chilling effect" on skilled foreign workers moving to the U.S, according to Joseph of the American Immigration Lawyers Association. While the tech industry has been the largest beneficiary of the H-1B program, the visa is used across many industries, including healthcare, where employers often recruit medical professionals from outside the U.S. to address shortages.
• Confusion and Uncertainty: The new fee has sown confusion among immigrant workers and their employers, particularly regarding travel outside the U.S. for current visa holders.

The proclamation is set to remain in effect for one year, with the possibility of extension. Within 30 days of the next H-1B lottery in March 2026, federal agencies will recommend whether to renew or extend the restriction. It is anticipated that litigation challenging the proclamation may occur, potentially leading to further changes and uncertainty for H-1B nonimmigrants and their employers.