What is the new $100000 H-1B Visa Fee Policy?

On September 19, 2025, the White House under President Trump signed a presidential proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers.”

Key features of the policy:

• Fee amount and who pays: Employers must pay US$100,000 per petition for new H-1B visa applications submitted by (or on behalf of) individuals currently outside the U.S. seeking to enter in H-1B status.

• Effective date: Starts at 12:01 a.m. Eastern Time on September 21, 2025. The policy is for 12 months unless extended.

• Not annual for existing/renewed visas: It does not apply to current H-1B visa holders, nor to renewals of H-1B petitions already approved or filed before the effective date.

• Scope: Applies to individuals outside the U.S. who want to enter in H-1B status, or whose petitions are being filed after the policy takes effect.

• Clarifications: Originally, some statements suggested the fee might also apply annually, or affect renewals, or even existing holders. But the White House clarified that:

  1. It is a one-time fee per petition (for the petition to allow entry under H-1B status).

  2. Does not apply to current visa holders for travel/return.

• Purpose: In the proclamation, the government states that the H-1B program has, in some cases, been used to replace domestic workers with lower-paid foreign workers, suppress wages, or otherwise distort the market. The new fee is meant to raise the costs of low-wage, mass hiring, to prioritize “higher-skilled, higher-paid” workers.

What This Means in Practice—Effects and Ramifications

The change is substantial. Here is how different stakeholders are likely to be impacted:

For Employers (Especially Tech Companies, Startups, Outsourcing Firms)

• The cost of hiring foreign workers under H-1B will increase dramatically for those outside the U.S., adding $100,000 per petition. This could make many roles prohibitively expensive.

• Firms may rethink which employees they sponsor, favoring those already in the U.S., renewals, or other visa categories less burdened by the fee.

• Some may reduce hiring via H-1B, outsource work overseas, or shift hiring strategies. This could impact global operations and cost structures.

• Potential legal challenges may arise regarding whether the fee is lawful (some see risk of overreach, fee vs. regulation, etc.).

For International Workers

• Those outside the U.S. and applying for H-1B visas will face this high cost (borne by the employer/petitioner). This may limit opportunities or reduce the number of companies willing to sponsor.

• People already holding H-1B visas, or those whose petitions were filed / approved before September 21, are not subject to the new fee. Reuters+1

• Travel plans become more sensitive: companies are advising H-1B holders abroad to return before the deadline (before enforcement begins) to avoid complications.

For International Students (F-1 / OPT / STEM Graduates, etc.)

This is especially important for students or recent graduates who may be planning the transition to H-1B. Some key implications:

1. OPT / STEM OPT Periods Remain Unchanged (for now): The policy does not directly affect F-1 OPT / STEM OPT programs. These are different visa/status categories. But the downstream effect (transitioning from OPT → H-1B) becomes more complicated/costly in some cases.

2. Cap Entry / H-1B Lottery Applications: If you’re outside the U.S. or need an H-1B visa stamped abroad after you change status, your employer will have to pay the new fee. That may discourage some employers from sponsoring, or push students to plan so that they minimize the need for visa stamping abroad.

3. Renewals vs New Applications: Since the fee doesn’t apply to renewals or existing visa holders (assuming the visa is valid and the petition was approved pre-policy), students who first get into H-1B may avoid this fee on renewals. But essentially, first-time transitions (OPT → new H-1B) become more expensive to sponsor (from the employer side), especially if you’ll need to leave the U.S. to get your visa stamped.

4. Travel and Positioning: Students whose status requires travel (for personal reasons, conferences, home visits, etc.) must carefully consider the timing. If you are outside the U.S. when you need to enter in H-1B status, you’ll need the petition with the new fee. So returning before the policy’s effective date matters.

5. Employer Consideration: Some employers might avoid sponsoring certain foreign students (especially for lower wage roles) due to cost. Others might increase job offers/wages to ensure that the role qualifies under whatever “higher wage / high-skilled” intent the administration is pushing.

6. Potential Shift in Strategies
   International students might explore alternate paths:

   • status change while staying in the U.S. (change of status vs. consular processing)

   • alternative visas (other non-immigrant or immigrant visas)

   • considering US universities, employers with cap-exempt H-1B (if eligible)

   • possible sector shifts to industries more willing to absorb costs

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Questions/Ambiguities/Legal Challenges

Because this is a recent policy, many details are still being clarified and may face legal challenges. Some open issues:

• Annual vs. One-Time Fee: The proclamation and some statements initially suggested it could be annual, but subsequent clarifications have emphasized it is a one-time fee per petition for entry in H-1B status (for those outside). Renewals and existing petitions aren’t subject to the fee.

• Renewals and Extensions: There is still discussion about whether renewals when the person is outside the U.S., or extensions for those outside, fall under the fee. Official clarifications have tried to limit it.

• National Interest Exception: The proclamation includes provisions that certain hires (or industries or whole companies) might be exempt if the hiring is determined to be in the U.S. national interest.

• Judicial Review: Challenges in court could alter or delay implementation. Legal arguments may focus on statutory authority, equal protection, or undue burden.

• Effect on U.S. Labor Market and Tech Sector: Whether this will lead to more domestic hiring, wage increases, or whether firms will find ways around it (outsourcing, remote work, etc.).

What International Students Should Do (Practical Tips and Strategies)

If you are an international student (or planning to study/stay in the U.S.), here are steps to reduce risk or maximize your chances under the new regime:

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Key Timelines and Deadlines to Note

• September 21, 2025, 12:01 a.m. ET — the effective date for the fee policy on new visa petitions/entry.

• The proclamation remains in force for 12 months unless extended.

• Any H-1B petition filed before that date, or already approved, should not require the new fee.

What It Means for “Cap”-Based H-1B & the Lottery System

The H-1B program already has numerical limits:

• 65,000 for general cap

• An additional 20,000 for holders of U.S. master’s degrees or higher (“advanced degree exemption”)

Implications of the new fee on this system:

• Because the fee raises costs for employers, fewer petitions might be filed by employers sponsoring people outside the U.S., leading effectively to fewer entries under the cap for those categories.

• Some employers may shift more hiring toward candidates who are already in the U.S., or shift toward roles exempt from the cap.

• Students with advanced degrees in the U.S. might be in somewhat better shape (depending on how their transcripts to petition flows, and whether their H-1B entry is handled in -U.S.).

Why This Matters Globally and in Specific Countries

• Countries with large numbers of H-1B visa holders or applicants (India, China, etc.) are likely to be most affected. Over 70% of H-1B visa approvals in recent years have gone to Indian nationals.

• The U.S. tech industry, which relies heavily on this visa class to fill high-skill roles (software engineering, STEM, etc.), faces a potential shortage or increased cost burden.

• There’s concern about “brain drain” disruption, bilateral tensions, and effects on the global mobility of knowledge workers.

Potential Criticisms/Risks of the Policy

• Affordability & Fairness: The fee is enormous relative to prevailing wages/employer budgets, especially in lower-wage tech roles, mid-sized companies, and startups.

• Legal questions: Whether the executive branch has the authority to impose such a fee, especially one that substantially changes who can realistically enter.

• Unintended consequences: Could push work overseas, reduce U.S. competitiveness, discourage foreign students or talent, and slow innovation.

• Chilling effect: Potential psychological/administrative uncertainty for students, workers, employers, etc.

Summary and What Lies Ahead

• As of September 21, 2025, a new one-time $100,000 fee per petition for many H-1B visa entries is required for those outside the U.S., entering in H-1B status under new petitions.

• Existing visa holders, renewals (approved/petitioned before the effective date), or those who don’t exit/enter under a new petition are not subject to this fee (based on current clarifications).

• For international students, especially, this heightens the need for early planning, awareness of how visa status transitions will occur, and close work with prospective employers.