What Happened
- On September 19, 2025, President Trump issued a Proclamation under authorities including 8 U.S.C. §§ 1182(f) and 1185(a) that imposes a $100,000 fee for certain H-1B visa petitions.
- The fee applies to H-1B petitions filed on behalf of foreign nationals outside the United States. The Proclamation instructs that such petitions must be “accompanied or supplemented by a payment of $100,000.”
- The Proclamation restricts entry into the U.S. for visa holders unless their petition included the fee.
Clarifications & Limitations
Because the announcement has rapidly evolved, here are critical clarifications from recent statements:
- The White House has stated that the new fee does not apply to existing H-1B visa holders, including those currently outside the U.S. reentering.
- It is a one-time fee per petition, not an annual fee.
- The fee takes effect September 21, 2025 at 12:01 a.m. Eastern Time for new petitions under the rules.
Who Is Likely Affected?
- New (first-time) H-1B petitions for foreign nationals outside the U.S. filed after 12:01 am ET on September 21, 2025. Unless cap-exempt, the next time new petitions would normally be filed would not be until next cap season for those selected in the lottery (April 2026).
Who is Likely Not Affected?
- Petitioners filing from within the U.S. Unclear / possibly not because the entry restriction focuses on those outside the U.S.
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H-1B extensions, changes of employer, or renewals for workers already in the U.S. Likely not — not yet confirmed as impacted.
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Existing H-1B visa holders (in U.S. or abroad) re-entering the U.S. According to White House, not affected by fee under current clarifications.
Practical Implications
- For employers: next cap season, unless the courts overturn this Proclamation, the cost of sponsoring new H-1B workers from abroad will increase dramatically. Budgeting for immigration costs will need to include this new fee.
- For H-1B workers abroad: if this is your first H-1B petition, unless the petition is already filed, your entry/visa application may be blocked unless the fee is paid.
- Compliance: employers and legal counsel must monitor implementing guidance from DHS, USCIS, and the Department of State regarding how payment is made, how petitions are adjudicated, and how entry will be assessed at ports of entry.
Litigation, Ambiguities, and Risks
- There is likely to be litigation challenging the Proclamation on constitutional, statutory, or administrative grounds (e.g., whether the President has authority to impose such large fees by proclamation, separation of powers issues, equal protection, etc.).
- Ambiguities remain around “new petition” definitions, whether “change of employer” or “porting” petitions are covered, and how “outside the United States” is defined.
- Risk of disruptions: delaying hires, travel cancellations, or loss of status if reentry is barred.
What You Should Do Now
- Review pending and upcoming H-1B cases to determine whether they may be subject to the new fee. This especially applies to cap-exempt employers.
- Communicate with foreign nationals in your workforce or recruitment pipeline who are outside the U.S., to assess whether they need to return, delay travel, or take action before the rule takes effect.
- Plan for the cost: Update HR/Immigration budgets to account for the $100,000 fee where applicable.
- Stay informed: Watch for further agency guidance (from DHS, USCIS, DOS), and possible legal challenges that may delay or invalidate parts of the rule.
Conclusion
This is among the most significant changes to the H-1B visa regime in recent years. The high fee could substantially alter how U.S. employers hire foreign skilled labor, particularly from outside the U.S. Given the evolving clarifications and ambiguities, it is critical that both employers and workers assess exposure immediately, adjust plans, and seek counsel as needed.
We Are Here to Help
If you would like assistance evaluating whether your company, your employees, or prospective hires may be affected by this change — including review of pending petitions, planning travel, or considering alternative visa strategies — please contact the KLF immigration professional with whom you normally work or call us on our main line at (212) 495-9245 or email us at info@klugfirm.com.
Disclaimer: This Client Alert is for general informational purposes only; it does not constitute legal advice. Actual application of laws and policies may vary based on your specific facts.