(UNITED STATES) President Trump has imposed a new $100,000 H‑1B fee on fresh petitions, effective 12:01 a.m. ET, September 21, 2025, through a Presidential Proclamation signed September 19. The order applies prospectively to new filings and visa issuances, and it has shaken employers, workers, and consulates from Silicon Valley to Hyderabad.

Current H‑1B holders remain exempt to keep or extend status, but the Proclamation tells the Department of Homeland Security not to approve any new petition for a worker abroad and directs the State Department not to issue an H‑1B visa unless the payment accompanies the case. A narrow waiver exists for cases judged to be in the national interest, though the criteria are still undefined.

H1B Visa $100,000 Fee Structure Table

The new $100,000 H1B visa fee represents a seismic shift in U.S. immigration policy, but its application is surprisingly targeted rather than universal. The fee primarily impacts new H1B applicants coming from abroad and those requiring visa stamping at U.S. consulates overseas. Current H1B holders within the United States are largely protected from this financial burden, as renewals, extensions, transfers between employers, and re-entries with valid visas remain exempt from the substantial fee.

This selective implementation creates a two-tiered system that heavily penalizes fresh international talent while protecting the existing H1B workforce. Employers planning to hire new foreign workers will face dramatically increased costs, potentially reshaping hiring strategies and making domestic talent acquisition more attractive. The timing of September 21, 2025, gives employers and prospective H1B workers a narrow window to file petitions under the current fee structure before the new requirements take effect.

H1B Visa Cost Comparison Table

The introduction of the $100,000 H1B fee transforms what was once a manageable immigration expense into a prohibitive financial barrier for many employers. While traditional H1B costs typically ranged from $2,000 to $5,000 for most petitions, the new fee structure catapults total expenses to between $102,000 and $105,000 or more. This represents a cost increase of approximately 2,000-5,000%, making H1B hiring one of the most expensive employment decisions a company can make.

The stark contrast becomes even more pronounced when considering that all existing fees remain unchanged—the $100,000 addition is purely incremental cost with no corresponding benefit or service enhancement. This dramatic shift will likely force employers to fundamentally reconsider their international hiring strategies, potentially favoring internal transfers, alternative visa categories, or domestic recruitment. Only the largest corporations with substantial budgets may continue pursuing H1B petitions at scale, effectively pricing out smaller employers from accessing global talent.

H1B $100,000 Fee Exemptions Table

The exemption landscape for the new $100,000 H1B fee reveals a complex web of uncertainty, with only two categories enjoying confirmed relief from the substantial financial burden. Current H1B holders with valid visas and petitions filed before September 21, 2025, represent the only “safe harbor” provisions with high certainty of exemption. These clear-cut exemptions provide crucial protection for existing H1B workers and create a powerful incentive for employers to rush petition filings before the deadline.

The majority of potential exemptions fall into a frustrating gray area, particularly affecting cap-exempt organizations like universities, research institutions, and nonprofits. While these entities have historically enjoyed preferential treatment in H1B processing, the new fee structure’s impact on their exemption status remains unclear, creating planning challenges for academic and research sectors. The “case-by-case” national interest determination adds another layer of uncertainty, offering hope but no guarantees for employers who can demonstrate compelling public benefit. This ambiguous exemption framework may prompt many organizations to seek legal clarification or pursue alternative immigration strategies while awaiting definitive guidance.

The immediate result is an H‑1B visa crisis, visible in delayed onboarding, scrapped offers, and frantic travel plans as companies recalculate the real cost of hiring under the United States’ most prominent high‑skill visa program.

Scope and Immediate Effects

Officials stress the change is not retroactive. People already living and working in the 🇺🇸 on H‑1B can keep traveling, renewing, and changing employers through normal processes without paying the new charge unless they file a fresh petition that triggers the rule.

The State Department is expected to remind consulates not to treat returning H‑1B employees as subject to the fee when they seek visas based on previously approved petitions. At the same time, the Proclamation bars entry for anyone trying to start H‑1B employment after the effective date unless the $100,000 has been paid — a sweeping condition that places the burden squarely on employers.

The order also warns against misuse of B visitor visas to perform work that belongs in H‑1B status, signaling tighter screening at ports of entry for would‑be contractors and body‑shopping placements.

Reactions and Public Response

• Telangana Chief Minister Revanth Reddy called the hike “totally unacceptable,” urging India’s federal government to press Washington for relief for families stretched by layoffs and delayed green cards.
• Indian tech founder Sridhar Vembu urged compatriots in the United States to “make the bold move” home or diversify plans, saying the new fee exposes the fragility of the current path.
• U.S. immigration attorneys say lawsuits are coming, arguing the Executive Branch cannot graft a six‑figure payment onto a congressionally created visa program without clear statutory authority.

At airports from Delhi to San Francisco, workers spoke of panic and confusion, with some comparing the rush to early‑pandemic scrambles for flights. Airlines reported rebookings by H‑1B employees who feared getting stuck abroad, even though the Proclamation doesn’t reach people returning to approved jobs on existing petitions.

According to analysis by VisaVerge.com, the first week will likely bring mixed decisions as agencies sort through edge cases and implement field guidance.

Policy Changes Overview

• Applicability: The Proclamation is prospective, attaching the H‑1B fee to petitions and visas filed after 12:01 a.m. ET, September 21, 2025.
• Entry condition: Entry to begin H‑1B employment after the effective date is conditional on payment.
• Exemptions: People already in valid H‑1B status who travel and return on existing approvals should not be charged the new fee.
• Agency instructions: DHS is told not to approve new petitions for workers abroad without payment; the State Department must check proof before visa issuance.
• Waivers: A narrow waiver may be granted by the Homeland Security Secretary for cases in the national interest, but metrics and criteria remain pending.
• Reference: For baseline H‑1B rules, see the agency resource on H‑1B Specialty Occupations.

Eight persistent myths (clarified)

1. Existing H‑1B workers are not being charged retroactively.
2. The payment is not a one‑time universal pass; each new petition filed after the start date must carry the $100,000.
3. The order targets H‑1B specifically — not O‑1, L‑1, or TN.
4. Waivers in the national interest exist but will likely be limited and unclearly defined initially.
5. The fee is not necessarily permanent — court challenges or future orders could modify or end it.
6. Travelers cannot switch to B visitor status to perform H‑1B work — the Proclamation pushes back on that.
7. Predictions of a total collapse of India’s IT services sector are overstated.
8. Lawsuits may affect rollout; judges could pause enforcement.

Impact on Applicants and Employers

The math has changed overnight: a six‑figure surcharge on top of base filing costs, attorney fees, and potential relocation will force hard choices.

• Large multinationals may absorb the outlay for critical roles.
• Startups, nonprofits, and public hospitals could struggle unless they secure a national interest waiver.
• Some firms will:
  • Cut signing bonuses,
  • Delay promotions, or
  • Shift headcount abroad.
• Alternatives employers may pursue:
  • O‑1 for extraordinary ability,
  • L‑1 for intracompany transfers,
  • Near‑shoring (e.g., Canada, Mexico),
  • Remote teams aligned with data and export controls.

Recruiters may freeze H‑1B offers while legal teams test scenarios:
1. Pay now and proceed.
2. Pivot to another visa category.
3. Build a waiver dossier and wait.

Each path carries risk. The steep fee is already reshaping how boards and HR weigh the return on investing in global talent.

The O‑1 Visa as an Alternative

The O‑1 category offers relief for those who can meet extraordinary ability standards.

Key features:
– No lottery and no annual cap.
– Initial approval can run three years, with unlimited one‑year extensions.
– Faster adjudication for qualified cases.
– U.S. agents can structure multi‑client work for founders.

Limitations:
– Not suitable for early‑career engineers, routine analysts, or roles without public achievements.
– Requires evidence such as peer‑reviewed publications, major awards, patents, keynote talks, and expert letters.

Practical example:
– A machine learning lead with cited research, patents, and keynote talks might qualify for O‑1.
– A solid developer without public achievements likely cannot.

Companies will increasingly screen for O‑1 potential early and pair recruiters with counsel to gather evidence months before hiring.

Legal and Political Crosscurrents

Law firms are preparing lawsuits arguing:
– The Executive cannot impose a revenue‑raising condition absent Congressional authority.
– The fee targets a single class of employers and workers, raising separation‑of‑powers concerns.
– Potential equal protection and due process claims may be raised for arbitrary treatment.

Litigation could produce:
– Temporary restraining orders or preliminary injunctions pausing enforcement.
– Rapid motion practice, amicus briefs from industry groups, and congressional hearings.

Context and precedent:
– H‑1B was designed for specialty professionals requiring at least a bachelor’s degree.
– Congress capped new visas at 85,000 per year; demand often far exceeds that cap.
– Pre‑2025 government fees ranged from roughly $1,710 to $6,460 per case.
– The new $100,000 assessment dwarfs prior fees and lacks modern precedent in employment‑based visas.

The administration frames the change as labor market protection, national security vetting, and revenue collection. Critics say it will undercut innovation and push projects offshore to Toronto, Vancouver, Guadalajara, or Bengaluru.

Market analysts expect:
– Limited immediate hit to Indian IT giants due to benches and onsite‑offshore models.
– A dent to smaller vendors, startups, and university spin‑outs lacking cash buffers.

Practical Guidance for Current H‑1B Employees

Advice for those already in valid H‑1B status:
– Breathe, plan, document.
– If you need a new visa stamp, book the appointment with evidence that employment continues unchanged.
– Bring recent pay stubs.
– Bring a letter from HR confirming job title, location, and salary.
– Bring your approval notice.
– The new fee should not apply to you under the Proclamation’s forward‑looking scope.
– At ports of entry, expect extra questions about job duties and worksites; carry an updated employer letter and be ready to explain your role in plain terms.
– Employers should map travel for key staff to avoid unnecessary international trips until agency field guidance stabilizes.
– If you plan to promote or change locations in a way that requires a new petition, discuss timelines now — any fresh filing after the effective date can trigger the charge.
– Watch for DHS guidance on national interest waivers to see if critical projects could qualify.

Human and Operational Fallout

The human side is raw. Examples reported:
– Indian professionals sprinting to airports, rearranging childcare, borrowing for last‑minute tickets.
– Flight cabins described as hushed, wired, and fearful — reminiscent of March 2020.
– One worker canceled plans to visit parents in Pune after hearing about possible secondary screening for returnees.

Travel agents reported unusual rebooking patterns as H‑1B families scrambled to reunite stateside. Counselors recommended calm checklists:
– Verify whether your role involves a new petition.
– Confirm your last approval notice.
– Check consular operations.
– Avoid unnecessary travel until rules settle.

The panic will likely fade as consulates apply consistent rules. But many feel ties to the 🇺🇸 are less secure when work permission can carry a price tag larger than the cost of a master’s degree.

Employer Playbook: Practical Steps

1. Triage your pipeline:
   • Label each future hire as critical, important, or deferrable.
   • Test whether the role can be filled locally within required wages and timelines.
2. Quantify the business case to pay the $100,000:
   • Assess revenue impact, security needs, customer penalties, and knowledge transfer.
3. Assess alternatives:
   • O‑1, L‑1, near‑shoring to 🇨🇦/🇲🇽, or remote teams.
4. Prepare waiver files for essential projects:
   • Collect evidence that the role serves national interest and poses no security/welfare risk.
5. Communicate with staff:
   • Explain the policy, who is exempt, and whether the company will fund the fee.
   • Reduce anxiety through regular updates.
6. Budget for litigation timelines:
   • Even if lawsuits advance, relief may come in stages; agencies may update guidance multiple times.

Key takeaway: map risk, prioritize hires, and prepare documentation now. The H‑1B fee policy will likely evolve quickly through guidance, litigation, and political pressure — but the immediate operational and human impacts are real and substantial.