US Imposes $100,000 H-1B Fee for New Petitions in 12-Month Ban

President Trump’s September 19, 2025 proclamation imposes a new barrier for employers hiring H‑1B workers from abroad: a $100,000 fee per new H‑1B employee or a national interest exemption. The action, widely labeled an H‑1B visa ban for new entrants, took effect September 21, 2025, at 12:01 a.m. EDT and is slated to run for 12 months, through September 20, 2026, with the option to extend. The White House says the move responds to layoffs in the tech sector and aims to protect U.S. workers, while companies and lawyers brace for compliance steps and likely court fights.

The policy’s scope is narrower than early rumors suggested. According to White House Press Secretary Karoline Leavitt and agency guidance, the $100,000 fee applies only to new H‑1B petitions for workers currently outside the United States, and it does not cover renewals, amendments, or cases filed before the effective time. It also does not block reentry for current H‑1B holders with valid visas.

The Departments of Homeland Security (DHS) and State will verify fee payment and enforce the order. DHS may grant case‑by‑case or sector‑wide exemptions where it finds entry is in the national interest and does not threaten U.S. security or welfare.

Uncertainty remains for cap‑exempt employers, including universities and nonprofit research groups that are usually outside the annual quota. Officials said guidance is coming on whether cap‑exempt cases are subject to the new payment. Agencies also flagged tighter screening for B‑1/B‑2 visitors in cases tied to future H‑1B employment before October 1, 2026, to curb short‑term workarounds.

Policy Changes Overview

• Effective dates: Sept. 21, 2025 – Sept. 20, 2026, with possible extension.
• Covered cases: New H‑1B petitions for workers outside the United States at filing.
• Not covered: Current H‑1B holders, renewals, amendments, and petitions filed before the effective date.
• Payment: $100,000 per employee, one‑time, verified by DHS and the State Department.
• Exemptions: National interest exemption available at DHS discretion; criteria pending further guidance.
• Travel: Current H‑1B visa holders may depart and return as usual and are not charged the fee.
• B visas: State instructed to restrict use of visitor visas where tied to H‑1B starts before October 1, 2026.
• Legal status: Lawsuits are expected; as of September 21, 2025, no court has blocked implementation.

DHS and U.S. Citizenship and Immigration Services (USCIS) confirmed the payment is not a recurring annual charge. Employers will need to keep proof of payment and expect audits. The Secretary of State will confirm payment during visa processing. Agencies also plan rulemaking to raise prevailing wages and to prioritize higher‑paid, higher‑skilled H‑1B workers in future selection rounds.

For official program basics and ongoing updates, consult the USCIS H‑1B page: https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations.

Impact on Applicants and Employers

For Indian IT services firms and their U.S. clients, analysts forecast a limited short‑term hit. That’s because the H‑1B visa ban and $100,000 fee do not reach the large base of existing workers who are already on H‑1B status or pursuing extensions. The near‑term pipeline for renewals remains intact, and current employees can travel and return without a new charge.

Still, companies planning to bring in fresh graduates or early‑career staff from overseas will face steep costs unless they can secure a national interest exemption.

Key practical effects:

• Employers will likely scale back new international hiring for roles that cannot absorb a six‑figure onboarding cost.
• New filings may be reserved for senior roles, niche skills, or urgent client needs where the business case is clear.
• Some companies will shift timelines or use remote teams abroad; campus recruiting and rotational programs could be paused.
• Prospective H‑1B workers outside the U.S. face two options: employer pays $100,000 or worker fits an exemption. Attorneys expect most employers — not workers — will bear the cost due to existing rules.
• Employers may prefer candidates already in the U.S. in another status, since the proclamation targets those outside the country at filing.

For the U.S. labor market, the administration argues the order will help American workers by slowing new inflows during a period of job losses in parts of tech. Supporters say it may push wages up and encourage firms to train local staff. Critics counter that H‑1B fills skill gaps and supports growth, and warn that a high, flat fee will not distinguish between wage levels or company size.

According to analysis by VisaVerge.com, larger firms are better positioned to absorb the cost than smaller consultancies or startups, which may revisit project staffing and delivery models.

Implementation and Next Steps

Employers preparing new H‑1B filings for workers abroad should plan immediate procedural steps:

1. Budget and remit the $100,000 payment per employee at the time of filing, and retain proof for audits.
2. If seeking relief, prepare a national interest exemption request to DHS. Criteria and process are pending, but companies should document why the role is essential to U.S. economic, health, or security interests, and why delay would harm those interests.
3. Keep a compliance file with fee receipts, position details, wage records, and communications with agencies. Expect checks by the Department of Labor and DHS.
4. Track related rulemaking on prevailing wages and H‑1B selection; higher wages and advanced skills may gain priority.

USCIS is expected to issue filing instructions tying the fee to the standard H‑1B petition package, led by Form I‑129, Petition for a Nonimmigrant Worker. When submitting new petitions, employers should:

• Continue using the correct edition of Form I‑129 and include all normal fees and supporting evidence.
• Add any new payment steps required by the proclamation.

For reference, see USCIS’s page for Form I‑129: https://www.uscis.gov/i-129.

For visa processing at consulates, applicants complete Form DS‑160 and attend an interview unless eligible for waiver. The State Department has indicated it will verify the new payment before issuing H‑1B visas that fall under the proclamation. Details about DS‑160 are here: https://travel.state.gov/content/travel/en/us-visas/tourism-visit/ds-160-online-nonimmigrant-visa-application.html.

National Interest Exemption — Key Unknowns

A major unresolved issue is how DHS will define the national interest exemption. Past uses of similar authority have focused on public health, national security, critical infrastructure, and urgent economic needs. The administration has not released explicit criteria.

Attorneys advise companies to begin building records now, in case the standard mirrors these themes. Documentation should show:

• Why the role is essential to U.S. interests (economic, health, security).
• Why delay or denial would cause harm.
• Any time‑sensitive project or public‑interest rationale.

Visitor Visa Screening and Risks

The proclamation directs State to watch for misuse of B‑1/B‑2 visitor visas by would‑be H‑1B workers whose start dates fall before October 1, 2026. Consular officers may probe:

• Purpose of travel, client site locations, and work plans.
• Any arrangements that look like short‑term work to circumvent the fee.

Employers should avoid sending new hires on visitor visas for tasks that resemble employment. Doing so risks visa denial and long‑term consequences for both worker and company.

Legal Challenges and Industry Reactions

Legal challenges are expected from business groups and immigration advocates. Plaintiffs are likely to argue:

• The flat $100,000 fee functions as a bar, not a processing charge.
• The executive branch may have overstepped by reshaping a congressionally created visa program.

As of September 21, 2025, no court has issued an injunction, but lawyers expect rapid federal filings that could pause or narrow the policy if plaintiffs demonstrate harm to U.S. firms and projects.

Industry reactions:

• Indian IT firms say the immediate practical impact is muted because many onshore staff are in extension cycles and work has shifted to delivery centers in India.
• U.S. tech companies are split: some welcome time to hire locally; others warn of innovation and project delays.
• Labor groups that criticize H‑1B outsourcing models support the fee.
• Universities and hospitals warn a broad rule without clear exemptions could harm research and patient care, especially if applied to cap‑exempt sectors.

DHS has promised clarity on cap‑exempt treatment “soon,” but institutions remain in limbo until guidance arrives.

Effects on Families and Dependents

The proclamation does not directly change status for dependent spouses and children already in the United States, nor does it add travel limits for those with valid H‑4 visas.

The larger risk is indirect: if a principal H‑1B case cannot proceed because of the cost, dependents’ status and travel options may be affected. Attorneys recommend conservative travel plans until consulates and ports of entry adopt consistent checks.

What Employers and Applicants Should Monitor

• Court challenges and any injunctions that could suspend or narrow the proclamation.
• DHS guidance defining the national interest exemption and cap‑exempt treatment.
• USCIS filing instructions tying payment to Form I‑129 and any new documentation requirements.
• State Department consular procedures for verifying payment during visa processing.
• Rulemaking on prevailing wages and H‑1B selection methods that may favor higher salaries and advanced degrees.

Employers filing for workers abroad now face a stark choice: pay the $100,000, prove national interest, or pause hiring. Families and workers already in the U.S. remain shielded from the new charge, but they may still feel ripple effects if companies change hiring or staffing strategies.

For official updates on eligibility, fees, and processing steps, consult the USCIS H‑1B page: https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations. Immigration counsel can help assess whether a role may qualify for a national interest exemption and prepare filings to meet evolving standards.