H-1B Fee Hike Spurs Remote Overseas Hiring by U.S. Firms

(UNITED STATES) U.S. companies are weighing a fast pivot toward hiring remote overseas workers instead of sponsoring H-1B visas after a new $100,000 fee took effect for fresh petitions at 12:01 a.m. ET on September 21, 2025. Employers say the steep jump in visa fees, paired with uncertainty over how to even submit the payment, makes onshoring talent far less attractive. Economists warn this shift could blunt the policy’s stated aim of protecting jobs in the United States by moving the work abroad rather than keeping it at home.

Under the policy now in force, any new H-1B petition must include a $100,000 surcharge. The fee applies to new cases filed after the effective date; petitions filed earlier and existing H-1B workers are not affected. Agencies are still developing the payment process, and there is currently no mechanism to pay the fee, creating a practical barrier for employers considering immediate filings.

How employers are reacting

In interviews and posts, economists and business analysts say the new fee will likely reduce overall H-1B filings, especially by startups and mid-sized companies that lack the cash to absorb six-figure visa fees. Larger tech firms may:

• Pay for a limited number of top roles.
• Shift positions to foreign subsidiaries.
• Rely more on L-1 intracompany transfers.
• Expand their global teams and hire remote workers overseas.

Remote workers based overseas allow companies to avoid U.S. visa processes altogether, while still tapping the same talent pool. Employers report that without a payment mechanism, they are unable to finalize filings, which further incentivizes remote hiring.

Views from economists and public reaction

Economist Peter Schiff said he expects work to move abroad:

“One of the unintended consequences of Trump’s $100K fee on H-1B visas is that companies will outsource the work outside of the U.S. Remote workers won’t pay U.S. income taxes or spend their earnings in ways that benefit local landlords or other U.S. businesses.”

Schiff also argued some political voices may accept outsourcing as long as immigrants don’t move to the United States — a claim that sparked sharp debate online.

Public reaction on social media is split:

• Some users support hiring abroad if it reduces immigration: “We are fine with that. Let them stay remote in other countries. … We prefer that they don’t come here…”
• Others predict employers will retain only the most sought-after foreign staff, let go of others, and try to replace roles with domestic workers.
• Several commentators note that offshoring already exists; the difference now is the financial push away from H-1B sponsorship created by the new visa fees.

Analysis from VisaVerge.com indicates boardrooms and HR departments are already reshaping hiring conversations toward remote-first models, especially in tech and STEM-heavy sectors.

Policy changes overview

• $100,000 fee per new H-1B petition: Effective September 21, 2025, at 12:01 a.m. ET. Applies only to new filings on or after that date. Prior filings and current H-1B holders are not subject to the surcharge.
• Payment mechanism pending: No official process exists yet to submit the fee, causing planning uncertainty.
• Related policy directions: Includes higher prevailing wage requirements and a tiered lottery that favors higher-paid, higher-skilled workers.

These measures taken together are pushing firms to compare the full cost of relocation, compliance, and visa fees with the simpler path of hiring remotely where talent already lives.

Impact on employers and workers

For employers:
– Startups and mid-market firms: A $100,000 surcharge per application could consume funding otherwise used for hiring, R&D, or product development.
– Large companies: Can absorb fees for critical roles, move jobs to offices outside the U.S., use L-1 transfers, or expand remote teams abroad.
– Operational planning: With no payment pathway, HR teams can’t finalize filings, delaying hiring and possibly pushing roles offshore to meet project timelines.

For workers:
– Many skilled professionals who hoped to move to the U.S. on H-1B visas may receive offers to stay in their home countries as remote employees — preserving jobs but removing the chance to live and build careers in American cities.
– Those already in the U.S. on H-1B status are not directly affected by the surcharge under current policy details, but future extensions, transfers, or employer changes will be watched closely.
– Top-paid and niche-skilled candidates may still find sponsorship due to the tiered lottery and higher wage standards.

Economists outline broader risks if fewer H-1B workers live and spend in the country:
– Reduced U.S. consumer spending: Lower demand in housing and retail if fewer foreign workers are onshore.
– Slower innovation: Fewer foreign knowledge workers in labs and founding teams could cool startup formation and research advances.
– Wider talent gaps: Sectors like software, AI, and advanced engineering already face domestic shortages; reduced sponsorship could worsen those gaps.

Political debate and next steps

Supporters of the fee increase argue it will protect American workers and push employers to hire domestically. Critics counter that the policy may change where workers sit, not where the work happens; firms can keep projects alive by hiring overseas.

The administration’s broader approach — higher prevailing wage standards and a lottery favoring higher-paid, higher-skilled applicants — aims to prioritize the “best and brightest.” Business groups worry the combined effect will squeeze smaller firms out and concentrate hiring power among multinational giants that can afford the fee or shift roles globally.

Some companies are considering hybrid talent models:

1. Keep a core group of essential staff in the U.S. for collaboration and leadership.
2. Distribute many other roles across teams in India, Eastern Europe, Latin America, and Southeast Asia.
3. Outsource specific functions (QA testing, back-end development, data labeling) to specialized vendors abroad.

Local and community effects

Workers and local communities could feel ripple effects:

• Housing and services: Fewer H-1B families renting near tech hubs reduces demand for apartments, child care, and neighborhood services.
• Universities and mentorship: Fewer H-1B alumni living nearby may reduce industry ties, mentoring, and startup formation.
• City budgets: Less sales and property tax revenue if office expansions slow and fewer professionals settle long-term.

Compliance, timing, and hiring cycles

Employers are assessing compliance and timing. With no mechanism to submit the $100,000 payment, legal teams say filing plans remain in flux. HR leaders report executives want clarity before authorizing expensive sponsorships.

If payment guidance does not arrive soon:
– Fall and winter hiring cycles could slip.
– More roles may be posted as remote-only.
– Compensation teams will continue recalculating budgets that compare a $100,000 visa fee plus relocation costs with market rates abroad.

Official resources and outlook

For official background on the H-1B program and policy updates, see the USCIS overview: https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations.

Near-term outlook:
– Expect a drop in new H-1B filings while companies test alternatives.
– Recruiters in tech hubs are already shifting job descriptions toward remote-friendly workflows, global time-zone coverage, and cross-border HR support.
– Legal departments are mapping L-1 options and revisiting which roles truly require on-site presence.

Whether the policy ultimately protects American jobs depends on employer responses. If firms keep work abroad through remote teams, the policy may reduce the number of foreign workers living in the U.S. without increasing domestic hiring as much as supporters expect. If higher wage rules and the new lottery design push companies to sponsor fewer, higher-paid roles, some advocates will call that a win.

For now, one point is clear: the economics of H-1B sponsorship have changed. With visa fees at unprecedented levels for new petitions, the business case for remote hiring grows stronger. Companies can still tap global talent — just not always by bringing people to American offices — and that shift, if widespread, could reshape where high-skilled work happens in the years ahead.