White House Defends $100,000 H-1B Fee to Protect U.S. Jobs

(UNITED STATES) The White House is standing by a new $100,000 H-1B visa fee on fresh petitions, saying the sharp increase is designed to protect U.S. workers by discouraging what it calls misuse of the program and steering employers toward domestic hiring. The policy took effect at 12:01 a.m. EDT on September 21, 2025, and applies only to new H-1B filings made after that time. Officials stress it will not touch current H-1B holders or renewals, nor will it apply to people already working in the United States on H-1B status who travel and re-enter.

Purpose and administration rationale

According to public remarks and a fact sheet released by the administration, the fee is part of a broader attempt to rebalance skilled worker programs and push companies to use the H-1B route only when the job truly requires international talent with exceptional skills.

The White House argues:

• Some firms have laid off American tech workers while securing large batches of H-1B visas.
• Raising the cost of sponsorship will discourage that pattern.
• The fee is framed not as a revenue tool but as a guardrail to restore fairness in how employers fill high-skill roles.

Officials have also signaled plans to explore additional changes, including:

• Raising prevailing wage levels.
• Considering ways to prioritize higher-paid roles in future H-1B lotteries.

They say these steps aim to align the program with market pay and skill demand and to help keep abuse in check.

Clarifications and scope

Early confusion followed the initial announcement. Some early comments suggested a recurring charge, creating panic in parts of the tech and outsourcing sectors.

Key clarifications:

• The $100,000 is a one-time fee attached to a new petition, not an annual bill.
• It applies only to petitions filed on or after 12:01 a.m. EDT on September 21, 2025.
• Petitions submitted before that time are out of scope.
• The fee does not apply to:
  • Current H-1B holders (extensions, amendments, or changes of employer when already counted against the cap).
  • H-1B workers who travel and re-enter the U.S. on existing status.

Officials have emphasized repeatedly: the fee applies strictly to new petitions filed after the effective time and is not retroactive.

Industry reaction and immediate consequences

Industry groups, immigration attorneys, and many employers reacted swiftly and unevenly.

• Some companies paused travel or told staff abroad to return before the effective date, fearing that re-entry might trigger new charges.
• Even after clarification that returning current H-1B holders are exempt, anxiety lingered due to abrupt rollout and mixed messages.

Specific concerns raised:

• Indian IT firms and U.S.-based multinationals warn the price spike may push work offshore or delay hiring onshore.
• Smaller startups may find the fee a barrier to hiring niche engineers or scientists.
• Larger tech companies may reconsider the number of new H-1B hires or shift project timelines.
• Some founders described the change as a tax on innovation. Others said it might reduce body-shopping or low-wage placements, potentially opening opportunities for local graduates and mid-career professionals.

VisaVerge.com reports that early uncertainty intensified backlash, but once the White House clarified the fee’s one-time nature, immediate panic eased—although companies remain wary of further changes.

Legal and diplomatic implications

Immigration lawyers are already assessing possible legal challenges. Their questions involve:

• Whether the executive branch can impose such a sweeping H-1B visa fee without congressional action, given statutory elements of the program.
• Potential Administrative Procedure Act issues around notice and comment procedures for the rollout.

The White House contends the step is defensible as a worker protection measure and that further rulemaking will provide additional detail.

Because a large share of H-1B professionals are Indian nationals, the fee may carry diplomatic weight:

• Indian officials and business leaders often view high-skill mobility as central to U.S.-India relations.
• Analysts warn the fee could be perceived in New Delhi as unfriendly to talent exchange, potentially affecting joint ventures and cross-border projects in cloud services, semiconductors, and healthcare tech.

Practical impact on employers and hiring decisions

Companies are recalculating budgets and headcount plans. Employers considering a new H-1B hire must weigh:

• The $100,000 one-time fee plus existing costs (legal fees and other required payments).
• For high-salary roles with strong business cases, companies may absorb the cost.
• For lower-paid positions or low-margin client-site work, employers may:
  • Shift work abroad.
  • Automate tasks.
  • Delay or cancel hires.

Predictions from business leaders:

• A short-term dip in new H-1B filings while policies settle.
• A gradual return focused on top-tier roles that clearly justify the cost.

Effects on workers and teams

For individual H-1B workers already in the U.S., day-to-day status is unchanged.

• The fee does not apply to extensions, amendments, or changes of employer for holders already counted against the cap.
• Families and teams are making practical adjustments:
  • Employers deciding whether to absorb the cost, delay a hire, or move work overseas.
  • Startups reworking budgets or exploring cap-exempt options.
  • U.S. workers competing with outsourced candidates may gain opportunities.

These are real trade-offs affecting careers, paychecks, and project timelines.

Guidance and next steps

Officials say more instructions will follow, including details on how the payment must be made with a petition. Attorneys expect additional guidance on:

• Refunds for rejected filings.
• Handling multiple related petitions.
• Treatment of cap-exempt employers (universities, nonprofit research groups).

Employers and workers should monitor official sources. For updates and implementation details, review the USCIS Newsroom: https://www.uscis.gov/newsroom

Key takeaways

• Fee amount: $100,000 (one-time).
• Effective time: 12:01 a.m. EDT on September 21, 2025.
• Applies to: New H-1B petitions filed on or after the effective time.
• Does not apply to: current holders’ extensions/amendments/changes of employer, or travel-related re-entry for existing H-1B status.
• Stated purpose: to protect U.S. workers by discouraging sponsorship patterns that displace Americans and encouraging domestic hiring and training.

The coming months will test whether the fee curbs low-wage placements and strengthens domestic hiring, or whether it reduces the U.S. draw for top global talent. Courts, Congress, agencies’ further rulemaking, and market responses will all shape the policy’s ultimate impact.

Practical advice

• Employers: audit hiring plans, consult counsel on timing and eligibility, and set internal policies to reflect the new cost reality.
• Workers: watch official channels, keep immigration documents current, and speak with employers about how planned petitions may change.

The decision underscores a long-running debate about balancing immigration with labor market goals. Whether a steep fee can achieve that balance remains to be seen, but its immediate effect is already reshaping hiring strategy and lives of people who build the technologies Americans use every day.