Is the H-1B Era Ending? The $100K Fee and Transfers Clarification

(UNITED STATES) A new presidential proclamation adding a $100,000 fee to each new H-1B petition has rattled employers and foreign workers across the United States 🇺🇸, raising alarms about hiring freezes, halted transfers, and stalled plans for students on Optional Practical Training (OPT). Issued on September 19, 2025 under President Trump and effective September 21, 2025, the measure targets new H-1B filings, not existing cases.

In quick follow-up, White House clarifications stressed that transfers, extensions, and renewals are not covered by the new cost. That message should calm many H-1B professionals, but the ground reality is more complicated. Uncertainty about how agencies will carry out the policy — and how employers will react — has already slowed decisions in the tech sector and beyond.

Key questions and short answers

• Does the fee apply to my upcoming job change?
  • Based on the proclamation and the White House clarifications, the fee applies to new H-1B filings only, not routine transfers or extensions.
• Will my employer still sponsor me?
  • Many employers are pausing to reassess. Some continue with extensions; others delay transfers pending guidance.
• Is this the end of the H-1B program?
  • No. The H-1B program itself continues, but the $100,000 fee significantly raises the cost of new petitions and may change employer behavior.

Officials and reaction

• Commerce Secretary Howard Lutnick called H-1B “the most abused visa category,” arguing the $100,000 fee would push companies to consider U.S. graduates first.
• Analysis by VisaVerge.com and reports from tech forums show:
  • Immediate pauses in hiring and internal reviews of sponsorship policies
  • Some companies stopping review of H-1B resumes
  • Others continuing extensions but delaying transfers pending legal guidance

Policy details and White House clarifications

• Proclamation signed: September 19, 2025
• Effective date: September 21, 2025
• Primary effect: $100,000 fee per new H-1B petition

White House clarifications stated:
– Transfers, extensions, and renewals are not subject to the fee
– Existing H-1B holders are not affected retroactively
– The fee applies only to new H-1B filings

In plain terms, workers already in H-1B status should be able to continue with extensions and employer changes without this new cost—if agencies and consulates apply the policy as outlined. However, agencies like USCIS, U.S. consulates, and border officers have discretion in interpretation and implementation, leaving room for uneven enforcement in edge cases.

Some attorneys worry a “change of employer” could be read as a new filing in certain situations, especially for workers outside the U.S. requiring consular processing. Written guidance from USCIS and consulates is still awaited.

For official H-1B program basics, see the USCIS overview: https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations. That page explains core rules and caps but does not yet reflect the new $100,000 fee, which arrived by proclamation.

Practical impact on workers and employers

Despite clarifications, fear persists. Three forces are at work:

• Policy ambiguities: Top-line rules can still create edge-case questions without harmonized guidance.
• Implementation risks: Different frontline officers (USCIS, consular, border) may treat cases inconsistently if training and messaging lag.
• Employer conservatism: Companies often pause sponsorship while counsel assesses risk; some limit approvals to senior roles.

Three plausible scenarios ahead

1. Worst-case scenario
   • Transfers are treated as new filings, triggering the $100,000 fee
   • Worker mobility collapses as employees feel locked into roles
   • OPT students see fewer paths to long-term roles; talent leaves for other countries
2. Base-case scenario (most likely)
   • Transfers and extensions remain exempt, but confusion keeps employers cautious
   • Large firms proceed with strict legal review; smaller firms step back
   • Anxiety lingers even when not required by policy
3. Best-case scenario
   • Agencies publish clear guidance confirming transfers are safe and consistent
   • Only brand-new H-1B petitions face the $100,000 fee
   • Hiring stabilizes after an initial chill

Practical advice for H-1B holders right now

• Stay calm and informed
  • The $100,000 fee targets new H-1B petitions, not transfers or extensions, per White House clarifications.
  • Follow updates from credible legal sources and company counsel rather than social media.
• Speak with your employer
  • Ask HR or legal how they’re interpreting the proclamation.
  • Understand whether your company will proceed, delay, or require additional approvals.
• Be cautious about travel
  • If you must leave and reenter the U.S., plan ahead in case a consulate interprets the rule differently.
  • Have counsel review timing and documentation before travel.

• Keep a backup plan
  • Consider short-term alternatives if transfers are delayed.
  • Some workers may explore roles abroad temporarily; others may wait for clearer guidance.
• Don’t rush major decisions
  • Agencies often provide clearer instructions after rollout; waiting a few weeks can materially change employer behavior.

Who is most affected — immediate outlook

• Existing H-1B workers with near-term extensions: should move forward with counsel.
• Transfers: likely to proceed first at larger firms with in-house legal teams.
• Small employers: more likely to pause transfers or new sponsorships.
• Fresh graduates awaiting new H-1B filings: face tighter hiring and fewer offers due to the $100,000 fee.

VisaVerge.com reports some firms forming internal review committees to approve any H-1B move, requiring managers to justify proceeding now versus waiting. This gatekeeping slows decisions but might ease once frontline agencies align with the White House clarifications.

Bigger picture

H-1B remains a key channel for bringing skilled workers into fields like software, engineering, and research. The core rules—specialty roles, degree-linked requirements, and the annual cap—still apply. What changed is the price tag for brand-new cases and the resulting fear that comes with an unfamiliar fee of this size.

Employers will adjust over time. Expect weeks or months before behavior normalizes. In the meantime:

• Keep records tidy and confirm timelines.
• Ask employers clear questions about sponsorship policies.
• Monitor official guidance from USCIS and consulates.

If agencies publish consistent guidance confirming that transfers are not new H-1B filings for fee purposes, hiring teams will likely reopen pipelines. If not, the hiring chill could last longer, affecting campuses, startups, and research labs.

The rule is simple in theory and complicated in practice: the $100,000 fee targets new H-1B petitions; transfers, extensions, and renewals are exempt based on the White House clarifications. The months ahead will show whether those words and frontline actions match.