H-1B Transfers End: $100K Fee Reshapes U.S. Talent

(UNITED STATES) A sweeping change to the H-1B visa program is sending shockwaves through tech and other high-skill employers after President Trump signed an executive order on September 19, 2025, imposing a $100,000 fee on new H-1B petitions for workers outside the United States 🇺🇸. The rule took effect at 12:01 a.m. EDT on September 21, 2025, and is set to run for 12 months, with the possibility of extension.

The administration says the move aims to reduce abuse, steer companies toward recent U.S. graduates, and dampen reliance on foreign labor. An anonymous mid-level manager at a U.S. tech firm posted on TeamBlind describing an immediate freeze on H-1B hiring, a halt to H-1B transfers, and stricter controls on extensions—early signs of how businesses are reacting on the ground.

What the Order Does (Immediate Scope)

• The $100,000 fee is a one-time, supplemental payment layered on top of existing H-1B costs.
• It applies only to new petitions filed for workers who are outside the United States.
• It does not apply to:
  • Current H-1B holders,
  • Extensions for workers already in the U.S.,
  • Change-of-status petitions filed from within the United States.

According to analysis by VisaVerge.com and briefings with employers, the rule targets future hiring from overseas rather than renewals or internal moves for people already here. That design narrows the immediate impact but may still reshape hiring pipelines.

“H-1B is the most abused visa category,” said Commerce Secretary Howard Lutnick, arguing the $100,000 fee would add economic friction that forces firms to reconsider default hiring patterns.

Employer Reactions and On-the-Ground Effects

An anonymous tech manager at a company of about 1,500 staff (roughly 1,000 engineers) reported these internal directions:

• “Fully stop sourcing H-1B resumes.”
• Add VP approval for H-1B extensions.
• Halt H-1B transfers.

Employees on OPT (Optional Practical Training) were reportedly told to consider returning to India or relocating to Canada 🇨🇦—a sobering signal for thousands of international graduates who viewed OPT as a stepping stone to H-1B status and, often, a green card.

Key ripple effects employers are experiencing:

• A chill on mobility: H-1B transfers have become practically riskier, even though not banned.
• Increased internal controls: senior sign-offs and paused movement slow promotions and job changes.
• Constrained hiring for startups and mid-sized firms: many cannot absorb a $100,000 fee for a single overseas hire, favoring larger firms with deeper budgets.
• Acceleration of offshore staffing: more work may shift to India, Canada, or other hubs.

Policy Changes Overview

The executive order arrives amid a broader push to recalibrate H-1B use. Beyond the fee, the administration has:

• Directed the Department of Labor to reassess wage guidance to favor higher-paid roles and reduce wage undercutting.
• Indicated possible case-by-case waivers for national interest reasons, though no public list of exemptions exists yet.
• Kept universities and nonprofit research bodies—traditionally outside the H-1B cap—watching closely to see if carve-outs will hold under the fee regime.

Universities, nonprofits, and research centers could see mixed effects depending on whether exemptions or waivers apply. Lab teams and early-career researchers who rely on H-1B after training visas may face hiring deterrents or delays.

Impact on Applicants and Employers — Practical Steps

Company memos and hiring managers show several common changes:

• Halting recruitment of new H-1B candidates from abroad due to the $100,000 fee.
• Pausing H-1B transfers to avoid added risk and uncertainty.
• Requiring senior sign-off for H-1B extensions to control exposure.
• Advising OPT workers to consider moves to India or Canada if U.S. roles can’t be converted.

Legal questions and likely outcomes:

• Critics argue the fee could conflict with immigration law and federal fee-setting rules.
• Lawsuits are likely; government lawyers will defend the order’s scope and rationale.
• Agency guidance may be issued clarifying edge cases (e.g., nonprofit/research exemptions, “national interest” waivers).
• Until guidance or court rulings appear, many employers are taking conservative approaches.

Practical filing notes:

• Employers filing H-1B petitions use Form I-129 to request classification with USCIS.
• Form I-907 can be used for premium processing to speed decisions.
• For official program details and forms, see these USCIS pages:
  • H-1B Specialty Occupations, DOD Cooperative Research and Development Project Workers, and Fashion Models
  • Form I-129
  • Form I-907

Strategic Options Employers Are Considering

• Shift to other visa categories when appropriate:
  • O-1 for individuals of extraordinary ability.
  • L-1 for intracompany transferees.
• File change-of-status petitions for candidates already inside the U.S. where eligible.
• Place hires in sister offices abroad while awaiting clarity or relief.
• Revisit offer letters, start dates, and relocation budgets.
• Document hiring decisions closely and stay near counsel.

Effects on Workers Already in the U.S.

• The order, as described by company counsel and immigration advisers, does not change extension or change-of-status rules for those already in the U.S.
• However, internal policies (e.g., requiring vice president approval for extensions) may slow promotions, moves, or pay adjustments.
• If transfers remain rare, workers may feel locked in, which creates retention risks if the market later shifts.

Economic and Longer-Term Implications

• The administration’s intent is simple: raise the cost of bringing in new H-1B workers from overseas to change hiring behavior.
• Possible outcomes:
  • Some firms retrain or hire locally, potentially benefiting recent U.S. graduates.
  • Others will relocate tasks offshore where talent is available and onboarding is easier.
  • Startups and mid-sized companies may be disproportionately disadvantaged, concentrating H-1B hires at large firms.
• The 12-month window (with potential extension) creates planning uncertainty:
  • Some employers may defer overseas H-1B hiring until the fee expires.
  • Others assume parts of the policy will persist and are retooling staffing models now.

Possible Legal and Administrative Developments to Watch

• Court challenges that might secure injunctions and pause the fee during litigation.
• Agency guidance that clarifies exemptions for small entities, nonprofits, or research groups.
• Clarification on what qualifies for national interest waivers or case-by-case relief.
• Updates to wage guidance and enforcement policies from the Department of Labor.

Human Stakes and Final Takeaways

For individuals, the stakes are deeply personal: careers on hold, family and schooling decisions, mortgages tied to employment, and the strain of uncertainty. The practical end of routine H-1B transfers—whether by policy or company caution—reduces flexibility and increases pressure to remain with a single employer.

For employers, the $100,000 fee is more than a budget line: it prompts a review of entire talent strategies—what to build in-house, what to automate, and what to move abroad. Some leaders argue that clearer wage rules and enforcement might better achieve the administration’s goals than a blunt fee; others welcome the change as a push to grow local pipelines.

No matter the outcome, the signal is clear: the H-1B landscape is changing fast. For now:

• Document decisions,
• Stay close to immigration counsel,
• Monitor official guidance and legal developments frequently.

The current order targets new overseas filings and leaves room for exemptions, but the practical effects—freezes on transfers, tighter extension reviews, and redrawn hiring plans—are already reshaping how high-skill work gets done in the United States.