US H-1B Visa

On 19-9-2025, the White House issued a presidential proclamation titled “Restriction on Entry of Certain Non-immigrant Workers” marking an initial and incremental step toward reforming the H-1B visa program. The proclamation aims to curb program abuses and safeguard American workers. As part of this reform, all new H-1B visa petitions filed after 12:01 a.m. EDT on 21-9-2025, are required to include a one-time payment of $100,000.

Background:

Over the past two decades, there was a growing concern regarding the impact of the H-1B visa program on domestic employment and national security. The proportion of IT roles held by H-1B visa holders has increased significantly, from 32% in FY 2003 to over 65% in recent years, while unemployment among recent U.S. computer science and engineering graduates has reached 6.1% and 7.5%, respectively, surpassing rates in other academic disciplines.

Between 2000 and 2019, the number of foreign STEM workers in the U.S. more than doubled, whereas overall STEM employment rose by only 44.5%. Several major companies have continued to receive thousands of H-1B approvals while simultaneously implementing large-scale layoffs of American workers.

In some cases, U.S. employees have reportedly been required to train their foreign replacements under non-disclosure agreements. These trends have contributed to declining interest among American students in pursuing STEM careers, raising long-term concerns about workforce readiness and national competitiveness.1

In response, the administration has introduced reforms, including a $100,000 fee for new H-1B petitions, to address program misuse, safeguard wage standards, and reinforce national security priorities.

Key Takeaways:

  1. This proclamation2 mandates any employer seeking to sponsor a new H-1B worker must now pay a $100,000 fee.

  2. This fee is a one-time fee payable by new H-1B applicants only. Including, the 2026 lottery, and any other H-1B petitions submitted after 12:01 a.m. eastern daylight time on 21-9-2025.

  3. The fee is non-refundable and must be submitted at the time of filing.

  4. The fee does not apply to:

    • H-1B visas issued before 21-9-2025

    • Petitions submitted prior to the deadline

    • Renewal applications or extensions of existing H-1B status

  5. This does not prevent any holder of a current H-1B visa from traveling in and out of the United States.

  6. Through this proclamation, following departments are authorised to take necessary actions for the implementation of this proclamation:

    • Department of Homeland Security

    • Department of State

  7. Implementation steps already taken:

    • U.S. Citizenship and Immigration Services (‘USCIS’) has issued guidance for petitioners and employers.

    • U.S. Customs and Border Protection (‘CBP’) has released travel-related instructions.

    • Department of State has distributed consular guidance aligned with USCIS and CBP.

  8. Beyond the fee announcement, the proclamation signals broader reforms aimed at “upskilling” the H-1B program:

    • Department of Labor will initiate rulemaking to raise prevailing wage levels, ensuring that H-1B roles attract top-tier talent.

    • DHS will revise lottery procedures to prioritize high-skilled, high-paid applicants over lower-wage candidates.

  9. The fee increase may disproportionately affect:

    • Small and mid-sized companies with limited budgets,

    • International applicants.

  10. Additional reforms are under consideration and expected to be announced in the coming months.

FAQ on H1-B3:

Who is required to pay the new $100,000 H-1B fee?

Any employer submitting a new H-1B petition after 12:01 a.m. EDT on September 21, 2025 must include a $100,000 one-time payment. This includes petitions for the 2026 lottery and any other new applications filed after the deadline.

Does the fee apply to H-1B renewals or extensions?

No. The $100,000 fee is only for new petitions. It does not apply to renewals, amendments, or transfers of existing H-1B status.

Can current H-1B visa holders travel in and out of the U.S. after the proclamation?

Yes. The proclamation does not restrict travel for individuals who already hold valid H-1B visas. They may continue to enter and exit the U.S. as usual.

What happens to petitions submitted before September 21, 2025?

Petitions submitted before 12:01 a.m. EDT on September 21, 2025, are not subject to the new fee. They will be processed under the previous rules.

Will there be more changes to the H-1B program?

Yes, the proclamation outlines future reforms, including:

  • Raising prevailing wage levels (Department of Labor)

  • Prioritizing high-skilled, high-paid applicants in the lottery (DHS)

  • Additional changes are expected in the coming months.


1. Fact Sheet: President Donald J. Trump Suspends the Entry of Certain Alien Nonimmigrant Workers — The White House

2. Action Decision Memorandum- HQ Other

3. H-1B FAQ — The White House

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