The U.S. government has unveiled a sweeping change to the H1B visa programme that could reshape one of America’s primary paths for highly skilled foreign workers.
Under a proclamation signed by President Donald Trump on September 19, employers will now have to pay a $100,000 annual fee for each H1B visa applicant.
The move is part of a broader policy shift intended to prioritize U.S. workers, raise wage standards, and limit what the administration views as abuses of the visa system.
What’s New with the H1B Visa Fee
Previously, companies seeking to bring in H1B workers paid various fees that were much lower—registration fees around $215, plus petition and filing costs depending on the case.
The new policy replaces or adds to these with a flat $100,000 per year charge for each H1B holder. This annual fee will apply not only to new visa requests, but also to renewals and extensions.
The fee increase comes with other changes: the administration is pushing to raise prevailing wage levels for H1B holders to ensure that foreign labor does not undercut U.S. workers.
Also, there is a “national interest” exception for certain high-skill or critical hires.
The proclamation states the fee requirement takes effect at 12:01 a.m. Eastern Daylight Time on September 21, 2025. Companies and foreign workers are being urged to adjust travel and plans accordingly.
Also See: Congress Moves to Expand State and Local Tax Deduction, Renewing Debate on Fairness
Reactions from Tech, Congress, and Immigrants
The technology sector, which depends heavily on H1B visas to fill roles in engineering, computer science, and other STEM fields, has expressed concern.
Major employers such as Microsoft and JPMorgan Chase have already warned employees on H1B or H4 visas to avoid leaving the U.S. until the policy is clearer, or return quickly if abroad.
Some U.S. lawmakers and policy analysts have criticized the hike as “reckless,” arguing it could damage America’s ability to attract global talent, reduce innovation, and hurt small businesses that rely on skilled foreign workers.
Congressman Raja Krishnamoorthi said that the steep H1B Visa Fee could cut the country off from workers who strengthen the workforce and launch companies that create jobs.
On the other side, the administration defends the change by pointing to abuses of the existing system, where companies allegedly use H1B visas for lower-skilled work, displace U.S. workers, or suppress wages.
Commerce Secretary Howard Lutnick has said the new fee is meant to ensure that only truly “extraordinary” and “very highly skilled” workers are brought in, and that companies will be encouraged to “train Americans.”
Possible Impacts
Several key consequences are already becoming clear:
- Cost Shock for Employers: Companies with many H1B workers may suddenly face large new expenses. For example, sponsoring just ten H1B employees could mean an additional $1 million per year in fees.
- Reduced Visa Applications: With the increased cost, fewer companies may apply or renew H1Bs unless the worker is deemed essential. Experts expect a fall well below the cap of 85,000 H1B visas per year due to cost constraints.
- Talent Flows Might Shift: Some skilled foreign workers may choose other countries with more favorable immigration policies. U.S. universities and tech sectors could face stiff competition in hiring and retaining global talent.
- Smaller Firms and Startups Hit Hardest: Big tech may absorb costs more easily than startups, non-profits, or smaller companies. These smaller players often make heavier use of H1B workers for early stage growth. The high fee may discourage them.
Legal and Political Questions
While the proclamation is now in effect, legal experts are already raising questions:
- Whether the president has the authority to impose such a high annual fee without new legislation from Congress, especially since immigration and visa rules are typically set through legislative action.
- Whether this change will stand up to constitutional or statutory challenges, given that fees are often limited to recovering costs of processing applications, not functioning as a deterrent or punitive measure.
What’s Next for H1B Applicants and Employers
If you’re applying for or sponsoring an H1B visa (or planning to in the near future), here’s what you should watch:
- Check deadlines: Because the new policy kicks in on September 21, 2025, those abroad or considering travel may face big financial implications.
- Assess value: Employers must consider whether a prospective H1B worker is worth the new H1B Visa Fee, especially for early-career roles versus senior, highly specialized positions.
- Explore exemptions/national interest exceptions: The proclamation allows for exceptions if hiring a certain individual is deemed in the national interest. Understanding what qualifies will be critical.
- Consider alternatives: Some employers may look toward other visa categories like O-1 (extraordinary ability) or EB–series green cards if feasible, or invest more in training U.S.-born workers.
- Prepare for legal change: Because legal challenges are likely, things may shift. Keeping up with guidance from USCIS, the Department of Labor, and immigration law experts will be essential.
The new $100,000 annual H1B Visa Fee marks one of the most dramatic changes to U.S. immigration policy in years.
While aimed at protecting American workers and reducing abuse, it also carries risks – reduced access to global talent, higher costs for industry, potential harm to U.S. competitiveness, and considerable legal uncertainty.
How Congress, the courts, employers, and skilled workers respond will shape the program’s future and its impact on the U.S. economy.
Your 7-Minute Daily Success Ritual
Unlock your wealth potential with The Billionaire Brain Wave – a groundbreaking 7-minute daily audio ritual rooted in neuroscience and backed by Columbia-led research.
Designed for busy Americans, this program harnesses theta brainwave entrainment to gently reprogram your mindset, boost focus, and unlock creativity.
Simply listen each day and tap into your brain’s natural capacity for abundance. With a risk-free guarantee and real users sharing life-changing results from sharper clarity to renewed financial opportunities.
The Billionaire Brain Wave is a smart, science-based tool your portfolio (and mind) will thank you for.
