(UNITED STATES) The Trump administration’s sudden move to impose a new, one-time $100,000 fee on most new H-1B work visa petitions filed on or after September 21, 2025 has already forced companies to redraw hiring plans, reroute talent, and reconsider pay strategies in the United States 🇺🇸 and beyond. Announced by President Trump on September 19, 2025, the policy does not affect current H-1B holders or petitions filed before the effective date, but it has set off a wave of immediate actions across the private sector and raised questions about how the U.S. labor market will absorb the shock in the months ahead.
Employers now face a steep upfront cost to sponsor high-skilled talent from abroad, while the administration has also directed agencies to raise prevailing wages and redesign the lottery to favor the highest-paid, most specialized roles. Together, these moves aim to limit perceived abuse of the program and boost domestic hiring, and they are likely to reshape wage bargaining and the geography of high-skilled work.
Immediate corporate reactions
Companies did not wait to react. Major employers including Amazon, Microsoft, and JPMorgan Chase told foreign employees to return to the United States before the fee took effect, signaling the uncertainty and disruption triggered by the announcement.
Those urgent advisories, reported by industry sources, show how quickly business planning can shift when immigration rules change with little transition time. For many firms, the calculus is straightforward: a single $100,000 fee per new H-1B petition for a worker outside the country transforms a normal staffing decision into a high-stakes financial choice.
- Employers that had counted on steady inflows of global talent are now weighing whether to:
- hire locally;
- redirect roles to remote teams abroad; or
- pause hiring until legal questions settle.
Trends in hiring strategy
According to analysis by VisaVerge.com, the fee and related policy directions are already pushing employers to accelerate global hiring outside the United States or expand distributed teams in countries with more favorable rules. This is reflected in early reports from technology, finance, and consulting firms.
Likely near-term outcomes:
– A drop in new H-1B filings for workers abroad.
– A stronger push to build remote, cross-border teams.
– Over time, sponsorship concentrated on the most senior or specialized roles, while mid-level positions move offshore or remain remote.
Policy intent and likely effects
The administration frames the $100,000 fee as part of a broader plan to:
– protect U.S. workers from wage pressure;
– ensure foreign hiring targets the very top of the talent market.
Officials have also called for:
– the Department of Labor to increase prevailing wages; and
– the Department of Homeland Security to adjust the H-1B selection process to prioritize higher-paid roles.
These steps would raise the salary floor for sponsored jobs and tilt the system toward applicants with the strongest pay packages. While agency details remain to be developed, the directional goals are clear: fewer mid-level foreign hires, more expensive sponsorships, and greater emphasis on elite skill sets.
National interest exception: uncertainty remains
A national interest category exists, but it is unclear how agencies will apply it or how applicants can prove eligibility. Early concerns include:
- how to document national interest;
- how consistently officers will apply exceptions; and
- whether narrow exemptions will meaningfully change hiring plans in critical sectors (health care, advanced manufacturing, cybersecurity).
Absent clear rules, many employers will assume the default is the steep fee for any new overseas hire.
Policy Changes Overview
Under the Proclamation:
– The $100,000 fee applies to most new H-1B petitions filed for workers outside the United States on or after September 21, 2025.
– It does not apply to renewals, transfers, or petitions filed before that date.
The policy couples the fee with agency instructions to:
– raise prevailing wages (higher minimum pay rates for sponsored roles); and
– revise the lottery to favor higher-paid candidates (skewing selection toward top-tier applicants).
Together, these three elements create:
1. fewer applications overall;
2. a tilt toward higher-paying roles; and
3. a costlier path to sponsorship.
Employers face:
– an immediate budget impact per new overseas petition (the $100,000 fee), and
– a structural impact from higher wage floors plus a lottery that rewards top pay.
For many firms, the least disruptive path is to expand remote or nearshore teams rather than pay large upfront costs for relocation to U.S. offices.
Effects on U.S. workers and foreign professionals
For U.S. workers:
– Some economists expect short-term gains—companies may recruit more locally to fill open roles, boosting demand and bargaining power for native-born workers with similar skills.
– Gains will be uneven: high-demand specialties may see stronger offers, while other areas might not change much if employers opt for offshore or remote staffing.
For foreign professionals:
– Competition for remaining sponsorship slots will intensify.
– Employers may reserve sponsorships for the most specialized roles with the highest salaries, potentially pushing up pay for that limited group but reducing mobility for many others.
– The labor market may bifurcate: elite jobs remain in the U.S., while routine or mid-career roles move abroad or stay remote.
Employer triage and industry differences
After the effective date, firms are likely to sort roles into three groups:
1. Jobs that justify the $100,000 fee and higher wage requirements (critical projects, rare skills).
2. Roles that can be moved to remote teams abroad with minimal disruption.
3. Positions that can be filled domestically (through training, broader searches, or revised job descriptions).
Industry differences:
– Large tech firms with global offices can pivot quickly to cross-border staffing.
– Financial services and consulting may shift back-end work offshore while keeping client-facing staff onshore.
– Smaller companies that relied on H-1B talent for growth may slow hiring or lean more on contractors overseas.
Campus recruiting and international students
For U.S. campuses and international graduates:
– Onshore internships and experience may carry greater weight if sponsors become scarcer.
– The Proclamation is set for 12 months, with agencies to recommend whether to extend it—creating uncertainty for long-term career planning.
Economic, geographic, and diversity implications
Broader economic effects:
– Fewer relocations and smaller local spending by newly arrived workers.
– More distributed U.S.-driven projects across multiple locations—maintaining schedules but limiting U.S. headcount growth.
Geographic and diversity consequences:
– Cities that grew with high-skilled immigrant inflows may see fewer new arrivals.
– A lottery favoring higher-paid applicants and a steep fee screening out mid-level roles can reduce team diversity in U.S. offices.
– Companies may preserve global perspectives by placing diverse team members abroad rather than relocating them.
Compliance, planning, and internal impacts
Practical steps employers must take:
– Confirm whether a petition falls inside the fee’s scope (a new H-1B for someone outside the country).
– Document timing relative to the effective date.
– Monitor agency guidance on wage rules and lottery mechanics.
– Track legal developments (e.g., the U.S. Chamber of Commerce challenge) for injunctions or timeline changes.
– Communicate clearly with managers and candidates about applicable rules and alternatives.
Internal effects:
– Compensation teams are stress-testing salary bands to account for higher prevailing wages plus the $100,000 fee.
– Finance departments will compare the total cost of U.S. sponsorship with hiring abroad and integrating remote employees.
– Managers will need stronger business cases to sponsor new H-1B hires; employees may be asked to consider remote arrangements.
Legal challenges and timeline uncertainty
Legal status:
– The U.S. Chamber of Commerce has filed a lawsuit challenging the fee and the rollout.
– Additional legal challenges are likely—around national interest exceptions, wage increases, and lottery changes.
– Court outcomes could alter timelines or implementation details.
Timing:
– The Proclamation includes a 12-month sunset, and agencies must recommend whether to extend it. This short planning horizon creates uncertainty for long-term hiring and investment.
Practical company responses to uncertainty:
– Approve sponsorships only for critical roles.
– Lean on global hiring for other needs.
– Delay relocation decisions until clarity about extensions.
– Build backup plans in case rules shift again.
“Employers and workers should expect a slower pipeline for new
H-1Bhires from abroad, a stronger tilt toward roles that can justify the $100,000 fee, and a rise in ‘global hiring’ to meet project needs without relocating employees to the United States.”
Where to find official information
Employers and workers seeking official references can review the U.S. government’s public materials on the H-1B category at:
– U.S. Citizenship and Immigration Services H-1B page
The new $100,000 fee, effective date, and related agency directions are specific to the Proclamation announced on September 19, 2025. Companies should watch for further updates and agency guidance.
Long-term outlook
Even if the Proclamation expires after 12 months without extension, many effects may persist:
– Companies will have built or expanded distributed teams and remote collaboration processes that are costly to unwind.
– Remote models and revised relocation budgets may remain entrenched, making future sponsor decisions more conservative.
Short-term expectations:
– Slower pipeline for new H-1B hires from abroad.
– Concentration of sponsorship on roles justifying the $100,000 fee.
– Increased global hiring and remote work adoption.
Long-term possibilities:
– A split outcome—higher domestic hiring for some roles, and a marked increase in remote/offshore staffing for mid-level work.
– Policymakers will measure results against goals for wages, innovation, and competitiveness to decide whether elements should remain or revert.
Final takeaways
- The $100,000 fee has already forced strategic rethinking across many companies—where teams are built, how pay is set, and which roles warrant sponsorship.
- Critical, time-sensitive, or security-related roles will still justify sponsorship; many other roles will move to remote or offshore models.
- The next year will be decisive: agency guidance, legal rulings, and whether the Proclamation is extended will shape how permanent these shifts become.
Employers, workers, and policymakers will spend the coming months tracking outcomes and adjusting plans as the implementation, legal challenges, and agency rules evolve.
This Article in a Nutshell
The administration announced a one-time $100,000 fee on most new H-1B petitions filed for workers outside the United States beginning September 21, 2025. The Proclamation also instructs agencies to raise prevailing wages and redesign the H-1B lottery to favor higher-paid, specialized candidates. Major employers immediately altered hiring plans, urging some foreign employees to return before the fee’s effective date and accelerating moves toward remote or offshore staffing. The measure excludes renewals and petitions filed before the effective date and lasts 12 months, though legal challenges (including a suit by the U.S. Chamber of Commerce) could change implementation. Anticipated effects include fewer mid-level overseas hires, concentrated sponsorship for senior roles, upward wage pressure for elite hires, increased global hiring, and potential geographic and diversity shifts in U.S. tech and professional centers.
