On September 19, 2025, President Trump signed an executive order imposing $100,000 per year in new H-1B fees for employers sponsoring workers, with a decisive clarification from White House officials: existing H-1B holders and in‑country renewals or transfers are exempt. The order—formally titled “Restriction on Entry of Certain Nonimmigrant Workers”— takes effect at 12:01 a.m. EDT on September 21, 2025 and is set to last 12 months unless extended. The new cost applies to new H-1B applications for workers outside the United States, not to those already in the United States.

Policy overview and immediate action check

What the order does:
– Requires employers to pay $100,000 per year, in addition to existing filing costs, for H-1B workers.
– Applies the fee to new H-1B petitions where the worker is outside the U.S. at filing or while pending.
– Exempts workers who are already inside the U.S. at 12:01 a.m. on September 21, 2025, even if their H-1B petition is still pending.
– Exempts petitions approved before September 21, 2025 that involve a change of status, extension of status, or change of employer for a worker who is physically present in the U.S.
– Sets the order to expire on September 20, 2026, absent an extension.

What’s under discussion:
– Officials are weighing whether to collect $300,000 up front for the typical three‑year H-1B period, or $100,000 annually.
– Commerce Secretary Howard Lutnick said the fee level, plus vetting costs, followed talks with companies.

Immediate action checklist for employers and workers:
– If the worker is outside the U.S. on or after September 21, 2025, assume the new H-1B fees apply.
– If the worker is inside the U.S. by 12:01 a.m. on September 21, 2025, and qualifies for an in‑country change of status, extension, or change of employer, the fee does not apply.
– Employers must obtain and retain proof of payment before filing any H-1B petition for a worker outside the U.S.

H1B Visa $100,000 Fee Structure Table

The new $100,000 H1B visa fee represents a seismic shift in U.S. immigration policy, but its application is surprisingly targeted rather than universal. The fee primarily impacts new H1B applicants coming from abroad and those requiring visa stamping at U.S. consulates overseas. Current H1B holders within the United States are largely protected from this financial burden, as renewals, extensions, transfers between employers, and re-entries with valid visas remain exempt from the substantial fee.

This selective implementation creates a two-tiered system that heavily penalizes fresh international talent while protecting the existing H1B workforce. Employers planning to hire new foreign workers will face dramatically increased costs, potentially reshaping hiring strategies and making domestic talent acquisition more attractive. The timing of September 21, 2025, gives employers and prospective H1B workers a narrow window to file petitions under the current fee structure before the new requirements take effect.

H1B Visa Cost Comparison Table

The introduction of the $100,000 H1B fee transforms what was once a manageable immigration expense into a prohibitive financial barrier for many employers. While traditional H1B costs typically ranged from $2,000 to $5,000 for most petitions, the new fee structure catapults total expenses to between $102,000 and $105,000 or more. This represents a cost increase of approximately 2,000-5,000%, making H1B hiring one of the most expensive employment decisions a company can make.

The stark contrast becomes even more pronounced when considering that all existing fees remain unchanged—the $100,000 addition is purely incremental cost with no corresponding benefit or service enhancement. This dramatic shift will likely force employers to fundamentally reconsider their international hiring strategies, potentially favoring internal transfers, alternative visa categories, or domestic recruitment. Only the largest corporations with substantial budgets may continue pursuing H1B petitions at scale, effectively pricing out smaller employers from accessing global talent.

H1B $100,000 Fee Exemptions Table

The exemption landscape for the new $100,000 H1B fee reveals a complex web of uncertainty, with only two categories enjoying confirmed relief from the substantial financial burden. Current H1B holders with valid visas and petitions filed before September 21, 2025, represent the only “safe harbor” provisions with high certainty of exemption. These clear-cut exemptions provide crucial protection for existing H1B workers and create a powerful incentive for employers to rush petition filings before the deadline.

The majority of potential exemptions fall into a frustrating gray area, particularly affecting cap-exempt organizations like universities, research institutions, and nonprofits. While these entities have historically enjoyed preferential treatment in H1B processing, the new fee structure’s impact on their exemption status remains unclear, creating planning challenges for academic and research sectors. The “case-by-case” national interest determination adds another layer of uncertainty, offering hope but no guarantees for employers who can demonstrate compelling public benefit. This ambiguous exemption framework may prompt many organizations to seek legal clarification or pursue alternative immigration strategies while awaiting definitive guidance.

Step-by-step: Employers sponsoring workers outside the U.S.

This order focuses on applicants abroad. If your worker is not physically present in the United States, follow these steps.

1) Confirm physical location and filing date
– Verify whether the beneficiary is outside the U.S. on or after 12:01 a.m. EDT on September 21, 2025.
– If yes, the $100,000 annual fee applies to the petition. This fee is in addition to any standard filing costs.

2) Budget and payment strategy
– Plan for either $100,000 each year of the initial H-1B validity or $300,000 up front for three years if that structure is adopted.
– Officials have not finalized timing, so prepare for both scenarios.
– Expect additional vetting costs, as referenced by Secretary Lutnick.

3) Make the payment before filing
– The order requires employers, prior to filing, to obtain and retain documentation showing the H-1B payment has been made for a worker outside the U.S.
– Keep records in a form that can be shown to the government on request.

4) File the H-1B petition with payment proof ready
– Proceed with petition preparation only after your organization’s finance and compliance teams confirm the payment proof is on file.

5) Expect verification by the Secretary of State
– The order directs the Secretary of State to verify receipt of payment during the H-1B visa petition process.
– The Secretary of State shall approve only those visa petitions where the employer has made the required payment.

6) Monitor the 12‑month window and potential extension
– The restriction expires September 20, 2026, unless extended.
– A multi‑agency recommendation on extension is due to the President within 30 days after the H-1B lottery that immediately follows this proclamation.

Key timeframes:
– Effective date: September 21, 2025 at 12:01 a.m. EDT
– Current expiration: September 20, 2026
– Extension review: within 30 days after completion of the next H-1B lottery

Step-by-step: Current H‑1B workers inside the U.S.

Workers already in the country receive broad protection from the new fee—if they meet the policy’s terms.

1) Confirm presence in the U.S. at the cutoff
– If the employee is already inside the U.S. by 12:01 a.m. on September 21, 2025, the $100,000 fee does not apply, even if the petition is still pending.

2) Use in‑country filings that qualify for the exemption
– If the H-1B petition was approved before September 21, 2025 and the filing is for a:
– Change of status to H-1B (for someone in the U.S.),
– Extension of H-1B status, or
– Change of H-1B employer for someone physically present in the U.S.,

then the new fee is not required.

3) Keep evidence of physical presence
– Maintain clear records showing the worker’s physical presence in the U.S. by the effective date.

4) Plan normal H-1B life‑cycle steps
– Continue with extensions and employer changes as needed during the 12‑month window, relying on the exemption referenced by the White House.

What to expect:
– Employers and employees using these in‑country pathways should not face the $100,000 fee under the terms described.
– If the worker travels and re‑enters, coordinate carefully with counsel to ensure the exemption logic still applies based on presence and petition facts at the key dates listed in the order.

National interest exemptions: built‑in flexibility

The order includes national interest exemptions that can apply at three levels:
– An individual worker,
– All workers at a specific company, or
– All workers in a specific industry.

If the Secretary of Homeland Security finds that hiring such workers is in the national interest and does not threaten the security or welfare of the United States, the restriction shall not apply.

How to think about this pathway:
– It’s a discretionary exemption; the Secretary of Homeland Security decides.
– Industries with acute needs or firms with specialized roles may consider whether their case aligns with the national interest language in the order.
– Employers should prepare clear evidence of national benefit and lack of risk if they intend to seek such consideration.

Compliance and government checks

Key employer requirement:
– Before filing an H-1B petition for a worker outside the U.S., employers must obtain and retain documentation showing the payment has been made.

Government verification:
– The Secretary of State shall verify receipt of payment during the H-1B visa petition process and shall approve only those petitions where the employer has paid.

Documentation approach:
– Keep payment receipts and internal sign‑offs in a central, auditable file.
– Align HR, finance, and legal teams so they can respond quickly if the government requests proof.

For official background on the H-1B category, see the USCIS H‑1B program overview.

The 12‑month window and lottery‑linked review

Effective period:
– Starts: September 21, 2025 (12:01 a.m. EDT)
– Ends: September 20, 2026, unless extended

Built‑in policy review:
– No later than 30 days after the next H-1B lottery finishes, the Secretary of State, Attorney General, Secretary of Labor, and Secretary of Homeland Security must jointly recommend to the President whether an extension or renewal serves U.S. interests.

Practical implications:
– Employers planning international hiring should treat the next 12 months as a period of elevated cost and limited options for workers abroad.
– Watch for signals from the agencies after the lottery concludes; a recommendation could shape what happens after the initial one‑year period.

Wage levels and priority changes ahead

Directives in the order:
– The Secretary of Labor shall start a rulemaking to revise prevailing wage levels in line with the order’s policy goals.
– The Secretary of Homeland Security shall start a rulemaking to prioritize admission of high‑skilled and high‑paid workers.

Implications:
– Even if the $100,000 fee lapses after 12 months, the wage and priority changes may shift which H-1B roles are competitive.
– Entry‑level and lower‑paid H-1B roles could become more difficult to sponsor, matching the administration’s stated intent to focus on higher‑wage, higher‑skill positions.

Industry impact and market signals

Technology sector reaction and FY2025 figures:
– Amazon had more than 10,000 H-1B approvals in the first half of 2025.
– Microsoft and Meta Platforms each saw over 5,000 approvals.

Market moves:
– Stocks tied to H-1B‑dependent firms moved lower: Cognizant Technology Solutions, and U.S.‑listed shares of Infosys and Wipro, closed down 2% to 5% after the announcement.

Administration’s economic case and supporting data:
– Foreign STEM workers grew from 1.2 million to nearly 2.5 million between 2000 and 2019, while overall STEM employment rose 44.5%.
– The foreign share of computer and math occupations increased from 17.7% in 2000 to 26.1% in 2019.
– Unemployment among recent computer science and computer engineering graduates (ages 22–27) reached 6.1% and 7.5%, respectively, according to a Federal Reserve Bank of New York study—more than double the rates for recent biology and art history graduates.
– Unemployment in computer occupations rose from an average 1.98% in 2019 to 3.02% in 2025.

Cited examples of program abuse:
– A software company reportedly obtained over 5,000 H-1B approvals in FY 2025 while announcing layoffs totaling 15,000 employees.
– Another IT firm with nearly 1,700 H-1B approvals in FY 2025 announced layoffs of 2,400 American workers in Oregon in July.
– A third company, approved for over 25,000 H-1Bs since FY 2022, reduced its U.S. workforce by about 27,000 since 2022.

Independent analysis:
– According to VisaVerge.com, the administration’s strategy, including the new H-1B fees, is likely to force employers to reassess which roles truly justify international hiring during the order’s 12‑month life.

Practical planning scenarios

For employers with candidates abroad
– Budgeting: Treat the $100,000 annual cost as a hard requirement for each H-1B year, with a potential $300,000 upfront payment if that structure is finalized.
– Hiring mix: Focus on roles where a very high skill level and revenue impact can justify the new cost.
– Compliance: Create an internal payment verification checklist, ensuring proof is secured before filing.
– National interest path: If your company or industry aligns with the order’s national interest criteria, prepare evidence packages to support exemption requests.

For current H-1B workers in the U.S.
– Extensions and transfers: Rely on the exemption when filing extensions, change of employer, or change of status if the worker was physically in the U.S. by the effective date.
– Travel caution: If international travel is planned, coordinate timing and filings so that the exemption remains clear under the order’s terms.

For prospective applicants abroad
– Expect the steepest barrier in H-1B history. Many employers may pause or cancel plans due to cost.
– Consider timing: Because the order expires September 20, 2026 unless extended, some employers may wait for the policy review tied to the H-1B lottery.

Broader context: program baselines and related policy

H-1B baseline:
– The H-1B program currently offers 65,000 visas annually, plus 20,000 more for advanced degree holders.

Related policy — the “Trump Gold Card”:
– A separate order establishes the “Trump Gold Card”, a program offering permanent residency and a pathway to U.S. citizenship for a $1 million investment.
– The administration frames the H-1B changes and the investment route together as an updated approach to skilled immigration and capital inflows.

Commentary from officials and experts:

“No longer will you put trainees on an H-1B visa. That it’s just not economic anymore. If you’re going to train people, you’re going to train Americans. If you have a very sophisticated engineer and you want to bring them in … then you can pay $100,000 a year for your H-1B visa.” — Commerce Secretary Howard Lutnick

“The policy could ‘kill the H-1B visa’ and ‘ban some of the highest‑value employees in America,’” — David Bier, director of immigration studies at the Cato Institute, calling it “utterly incomprehensible.”

What to expect next

• Enforcement: The Secretary of State will check for payment receipt and approve only those H-1B visa petitions with the employer payment made for workers abroad.
• Review: A joint recommendation from four senior officials is due to the President within 30 days after the next H-1B lottery ends, addressing whether to extend or renew the restriction.
• Rulemaking: The Department of Labor and Department of Homeland Security will begin rulemakings on wages and priority that could further change which H-1B roles succeed.

For official background while this order is in effect, see the USCIS H‑1B program overview.

Align actions with the effective date, exemptions, and documentation rules described above, track the 12‑month window, and prepare for continued policy movement driven by the executive order, agency rulemakings, and the upcoming lottery‑linked review.