(UNITED STATES) The Trump administration has moved to reshape the H-1B landscape with a steep $100,000 H-1B petition fee for most new cases filed on or after September 21, 2025, and stepped-up enforcement aimed at making sure highly skilled jobs in specialty fields go to Americans first. The policy, confirmed by federal agencies as of October 15, 2025, targets new sponsorships for workers outside the United States, while leaving current H-1B holders and petitions filed before the effective date untouched. U.S. officials say the changes form part of a broader push to raise wages, clamp down on abuse, and shift the program toward higher-paid roles.
Who is affected and when
- The $100,000 fee applies to any new H-1B petition filed with U.S. Citizenship and Immigration Services (USCIS) on or after September 21, 2025, for a worker who is outside the country at the time of filing.
- It is a one-time charge in addition to existing filing fees.
- The fee does not apply to:
- Renewals
- Amendments
- Petitions filed before the effective date
- People who already hold valid H-1B visas
U.S. Customs and Border Protection (CBP) and USCIS have clarified that those with valid H-1B visas, or petitions filed before September 21, are not subject to the fee or the related entry restrictions tied to post-effective-date petitions.
Policy goals and enforcement emphasis
Officials describe the change as a way to curb dependence on lower-cost labor and steer the visa toward higher-skill, higher-pay roles. Alongside the fee, the Department of Labor (DOL) has intensified “Project Firewall,” its nationwide effort to investigate fraud and abuse in the program.
- DOL focus areas:
- Whether employers are meeting wage rules
- Whether employers honor job terms
- Whether qualified U.S. workers were given fair consideration before hiring foreign talent
The department has repeatedly stated its mission is to “ensure highly skilled jobs go to Americans first,” and it has warned employers to tighten compliance or face consequences.
Penalties and investigative powers
The enforcement dragnet includes significant penalties for violations:
- Back wage orders
- Civil fines
- Debarment from future H-1B sponsorship
Investigators under Project Firewall are reviewing recruitment records and job descriptions to confirm roles are truly specialty occupations and that pay meets revised wage standards. These penalties are intended to deter misuse and push companies to build stronger internal controls.
Changes to wages and the H-1B lottery
- The administration has directed the DOL to revise prevailing wage levels upward, which would raise required pay for many H-1B roles.
- Proposed changes to the H-1B lottery would favor higher-paid, higher-skilled applicants; those lottery changes remain in rulemaking, but the direction is clear.
Together with the H-1B petition fee, these measures make new sponsorships more costly and more selective, particularly for employers that rely on large volumes of hires from abroad.
Employer responses and market effects
Major sponsors are already adjusting operations:
- Tata Consultancy Services (TCS) has announced plans to reduce reliance on the visa and increase local hiring in the U.S.
- Several large tech and consulting firms are reassessing talent pipelines, according to VisaVerge.com, exploring:
- Filling roles with U.S. workers
- Alternative arrangements such as training and upskilling local talent
The financial hit of a $100,000 fee per new case is prompting companies to triage positions—prioritizing roles that genuinely require rare skills and reconsidering hires that can be filled domestically.
Guidance for employers and HR/legal teams
Employers face compressed timelines to verify case histories and filing dates across their H-1B workforce. Practical steps being recommended:
- Confirm whether any planned H-1B case involves a worker outside the country and a filing date on or after September 21, 2025; if so, budget for the $100,000 fee.
- Document domestic recruiting efforts to demonstrate U.S. workers received meaningful consideration.
- Review wage levels given the administration’s direction to raise prevailing wages.
- Prepare for DOL requests under Project Firewall by organizing:
- Job descriptions
- Pay records
- Employment terms and offers
- Revisit workforce plans and consider expanding training programs for U.S. hires.
Legal teams are being asked to map recruiting steps and show job ads matched actual role requirements. Compliance officers should be ready for potential DOL documentation requests.
Impact on workers abroad and applicants
- For many candidates abroad, the obstacle is no longer just credentials but whether an employer will pay the fee and withstand scrutiny.
- Applicants can expect longer timelines as companies complete internal reviews and documentation collection.
- Those with pending cases filed before September 21, 2025, should continue under the earlier rules.
- New cases filed after the effective date face the combined burden of fee, higher wages, and a stricter lottery design (if finalized), pointing toward fewer, more specialized jobs.
Administration messaging and political context
The DOL is urging companies to audit themselves and correct classification or pay issues before government enforcement does so. The agency reminds employers of penalties including back wage collection, civil fines, and debarment.
- Administration framing: H-1B sponsorship should be a limited tool for true specialty needs, not a default hiring channel.
- President Trump has portrayed the policy as a way to put Americans first in the labor market while reserving the visa for roles requiring rare expertise.
Industry reactions and likely long-term trends
- Supporters argue the program previously depressed wages and displaced local workers.
- Critics warn of lost competitiveness if companies cannot bring in needed skills quickly.
- Higher prevailing wages and lottery preference for senior candidates could:
- Price out entry-level roles
- Shift demand to senior positions
- Push companies to build school-to-work pipelines for U.S. graduates, offer relocation support for U.S. talent, and raise starting pay
Clarifications from CBP and USCIS
CBP and USCIS stress the rules are prospective, not retroactive:
- Holders of valid H-1B visas and those with petitions filed before September 21, 2025 can continue travel and work under existing approvals.
- New petitions filed after September 21, 2025 for workers outside the country are the focus of the H-1B petition fee and related entry limits.
Bottom line and analysis
According to VisaVerge.com, the combined effect of the fee, wage direction, and enforcement surge marks the most sweeping shift in the H-1B program in years. The measures:
- Raise costs
- Increase risk for sponsors that cut corners
- Steer the visa toward higher-paid positions in specialty fields
Supporters call it a course correction to protect U.S. workers and tighten quality. Critics worry about competitiveness and access to needed skills. For now, the policy sends a clear signal: employers must try to hire Americans first, be prepared to pay more when they sponsor, and be ready to prove they did so.
For official guidance on eligibility and program rules, see USCIS’s H-1B overview: https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations.
This Article in a Nutshell
Beginning September 21, 2025, the administration will charge a $100,000 one-time petition fee for most new H-1B filings made for workers located outside the United States; existing H-1B holders and petitions filed before that date are exempt. The Department of Labor is ramping up enforcement through Project Firewall, expanding audits, back-wage orders, civil fines and potential debarment for employers who fail to meet wage and recruitment rules. Regulators are directed to raise prevailing wages and pursue lottery changes favoring higher-paid applicants. Employers are retooling hiring strategies, documenting domestic recruitment efforts, and budgeting for increased costs. The intent is to prioritize Americans for specialty roles while reducing program abuse and shifting H-1B use toward higher-paid positions.
