Trump Imposes $100,000 Fee for New H-1B Visas: What You Need to Know

On September 19, 2025, President Donald Trump signed a proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers”, proposing significant change to the H-1B visa program: employers sponsoring new H-1B visa petitions for workers outside the U.S. will now be required to include a $100,000 supplemental fee.

Below is a breakdown of the key elements, expected impacts, clarifications, and potential risks and challenges.

What the Proclamation Says

Key Requirements & Restrictions

Entry to the U.S. for H-1B workers will be restricted “except for those aliens whose petitions are accompanied or supplemented by a payment of $100,000”.*
An H-1B petition must be “accompanied” with the $100,000 payment for the petition to be considered.
The Department of Homeland Security, (through U.S. CBP) and The Department of State (through USCIS) shall coordinate to enforce the new payment requirement.
Employers must maintain documentation of remittance; the Department of State may verify payment during visa adjudication.
Exemptions may be granted on a case-by-case basis, for instance if hiring in the national interest or in sectors critical to national security.
The proclamation notes that the Department of Labor will begin revising prevailing wage standards, and that the Department of Homeland Security should prioritize high-wage, high-skilled H-1B beneficiaries. The latter of which has been codified as a Proposed Rule.

Clarifications & Important Carve-Outs

Because of confusion in the immediate aftermath of the announcement, several clarifications have been issued through USCIS and White House FAQ releases:

The new $100,000 fee does not apply to current H-1B holders. They can continue to leave and re-enter the U.S. as before and are not required to pay the fee for visa renewals.
The proclamation is framed as a one-time fee, not an annual surcharge. Some early statements by officials had suggested otherwise.
It does not affect H-1B petitions filed before the implementation date (i.e., before 12:01 a.m. on September 21, 2025).
The executive action is technically a proclamation on entry and visa issuance, rather than a law passed by Congress. Legal challenges are anticipated.

Scope and Effective Date

The new requirement took effect at 12:01 a.m. EDT on September 21, 2025.
It applies to all H-1B visa petitions filed on behalf of workers “who are currently outside the United States”.
The order takes effect for an initial 12-months, and a recommendation on whether an extension or renewal shall be made will be made within 30 days following the completion of the March, 2026 (FY 2027) H-1B lottery.

So who Is Considered “Outside the United States”?

The proclamation specifically applies to petitions filed on behalf of “H-1B specialty occupation workers … who are currently outside the United States”. However, there is no formal guidance yet on whether this language covers individuals who are already in the U.S. on another nonimmigrant status (such as F-1 students or L-1 transferees) and who wish to change status to H-1B through either the change-of-status or consular-notification petitioning process.

At present, it remains unclear whether the change-of-status petitions will trigger the $100,000 requirement or whether the fee applies strictly to consular-processing cases abroad (which can be filed for individuals who are currently in the United States on another visa status). USCIS and the Department of State are expected to issue clarifying instructions, but until then, employers and applicants are left in a gray area that could significantly affect filing strategies.

Who Is Likely to Be Affected & How

Employers & Corporate Sponsors

Companies that frequently sponsor foreign talent (especially in tech, consulting, biotech, or STEM fields) will suddenly face a steep cost increase for international hires.
The new fee may prompt some firms to re-evaluate whether to pursue foreign recruitment, invest more in domestic hiring, or shift some roles offshore entirely.

Foreign Applicants

Prospective H-1B candidates who are currently abroad will effectively see the barrier to entry dramatically raised.
The petition may be denied if it is not accompanied by the $100,000 payment, unless a waiver or exemption is granted, these are expected to be limited.

Sectoral & National Interest Exceptions

Healthcare, research, defense, or other sectors might successfully argue for exemptions based on the national interest.
Organizations such as the American Medical Association have already begun petitioning for physicians, researchers, and medical trainees to be excluded from the fee.

Legal Risks, Challenges & Uncertainties

As the $100,000 requirement is introduced via proclamation rather than statutory law, it may face lawsuits challenging its legality or constitutionality.
Aspects of the policy are vague or internally inconsistent (e.g., annual vs. one-time fee, waiver mechanisms), which may lead to legal or administrative challenges.
The full rulemaking process (notice & comment, regulatory drafting) has yet to play out; many of the finer points will be determined later by agencies.
Some states (e.g. California) are already considering legal action.

What Steps Employers & Applicants Should Consider

Budget and plan for the extra cost if future hiring will require overseas H-1B petitions.
Assess whether your roles could qualify for national interest exemptions, especially in sectors like healthcare, research, critical infrastructure.
Monitor regulatory developments, proposed rules, agency guidance, and litigation outcomes may alter key terms.
Consult immigration counsel to evaluate risks, compliance strategies, and waiver opportunities.

Bottom Line

The Trump administration’s proclamation introducing a $100,000 supplemental fee on new H-1B visa petitions may be one of the most significant attempts to change the U.S. high-skill immigration system in recent memory. While it aims to curb perceived abuses and shift incentives toward domestic hiring, it also raises profound questions about cost, competitiveness, and legal authority.

For employers, applicants, and the broader tech and scientific ecosystem, the next several months will be critical: agency rulemaking, litigation outcomes, and how exemptions are handled will determine how disruptive this change ultimately becomes.