Trump’s $100,000 H-1B Fee: What Employers and Workers Should Know

(UNITED STATES) President Trump has ordered a new H-1B visa fee that will reshape how U.S. companies hire and keep skilled foreign workers. The policy imposes a $100,000 annual fee per H-1B employee on sponsoring employers and takes effect at 12:01 a.m. ET on September 21, 2025. The administration says the goal is to reduce reliance on foreign labor and raise the cost of outsourcing, while business groups warn of hiring freezes, canceled projects, and a push to move work abroad.

According to analysis by VisaVerge.com, the measure could immediately affect tens of thousands of workers and families, with the heaviest impact in the tech and finance sectors. Attorneys and employers describe it as the most expensive federal fee ever attached to a U.S. temporary work visa.

Who and when the order applies to

• The new $100,000 annual fee is due for each H-1B worker per year of H-1B employment covered by a petition.
• It takes effect at 12:01 a.m. ET on September 21, 2025 and applies to:
  • New H-1B petitions for workers outside the United States filed after September 21, 2025.
  • Extensions and transfers when the H-1B worker is outside the country at filing or seeks to reenter.
  • Consular visa issuance and admission at a U.S. port of entry, where proof of payment will be checked by consular officers.

The proclamation also instructs labor officials to adjust prevailing wage policy to favor higher-paid roles. There are limited exemptions if the Secretary of Homeland Security determines a case is in the national interest and does not harm U.S. workers’ wages or welfare; these will be handled case by case.

• The order sets an initial 12-month period (through September 21, 2026). Agencies must report back after the next H-1B lottery on whether to extend or modify the fee.
• Employers should expect greater wage-focused scrutiny going forward as agencies prioritize high-skilled, higher-paid roles.

For workers already in the U.S. with valid H-1B status, current approvals are not canceled immediately. However, the next extension or any travel triggering reentry could trigger the fee — a core concern for employees whose status runs through 2026–2027 and for companies planning multi-year staffing.

Immediate impacts and sector effects

• Tech firms, banks, and large consultancies that sponsor thousands of H-1B employees face a steep cost spike.
• Small and mid-sized firms, especially startups and consultancies, may pause or stop sponsorship altogether.
• The heaviest industry impacts are expected in technology and finance, with tens of thousands of workers and families affected right away.

Consequences employers are weighing:
– Hiring freezes and canceled projects
– Prioritizing hires with clear revenue impact or national interest claims
– Increased offshoring or automation to avoid the fee
– Greater push to sponsor green cards earlier for key employees

Practical steps employers are already taking

Immediate actions being implemented by companies:

1. Budget for the H-1B visa fee and re-evaluate which roles justify the $100,000 annual fee.
2. Prepare documentation procedures to prove payment for petitions and visa stamps abroad.
3. Review candidates and roles for possible national interest exemptions.
4. Warn staff about travel risks after September 21, 2025 and ask those abroad to return before the deadline.

Employer playbook for the next 90 days:
– Map every H-1B and H-4 employee’s location and travel plans.
– Prioritize returns to the United States before the deadline.
– Sort roles into buckets: “pay fee,” “seek exemption,” “defer/offshore.”
– Set aside budget contingencies and build documentation procedures.
– Communicate clearly with staff to reduce stress and confusion.

Practical guidance for H-1B workers and families

If you are an H-1B worker or dependent, consider these steps:

• If you’re inside the U.S. and in valid H-1B status, you can continue working for now. The immediate risk is mainly at your next renewal or if you travel and need to reenter.
• If you’re outside the U.S., many employers are urging a return before September 21, 2025. After that date, reentry could be denied unless the fee has been paid by your sponsor.
• Dependents on H-4 visas are not directly named in the fee rule, but families may face travel complications if the H-1B principal cannot show payment at a consulate or port of entry. Many companies are asking H-4 dependents to return now to avoid separation.

Key do’s and don’ts in the near term:

Do:
– Stay in the United States if you already live and work here.
– Return before September 21, 2025 if you’re abroad on H-1B or H-4.
– Speak with your employer about long-term plans, including sponsorship for permanent residence (green card).
– Keep records current: pay stubs, approval notices, and passport copies.

Don’t:
– Take non-essential trips abroad after the effective date.
– Assume dependents will be unaffected — family travel can be disrupted if the principal H-1B isn’t cleared to return.
– Wait until the month of renewal; plan years ahead, especially if you’re from a country with long green card backlogs.
– Rely on rumors — always check official updates and employer guidance.

Case example:
– An engineer from India who started H-1B status in October 2024 and remains in the U.S. is generally fine for now.
– If he stays through 2026, his main pressure point arrives at a 2027 extension, when the employer would need to cover the fee.
– Options if an employer refuses: switch jobs (new employer must pay) or start a permanent residence case to reduce reliance on future H-1B renewals.
– If he travels abroad after the rule takes effect, reentry could be blocked unless the fee has been paid.

Wider effects: mobility, offshoring, and green card plans

• Hiring freezes: Smaller firms may stop H-1B sponsorship; larger firms will triage roles for revenue impact or national interest.
• Job mobility: Transfers now carry the same fee burden, making it harder to change employers and potentially slowing wage growth for foreign workers.
• Offshoring & automation: Some employers will shift projects overseas or automate tasks to avoid the fee; others may expand teams in Canada or Europe.
• Green card acceleration: Many H-1B employees will press for earlier green card sponsorship to reduce uncertainty. For Indian nationals, securing an earlier priority date is especially valuable.
• Travel risks: After September 21, 2025, leaving the U.S. may risk reentry unless the employer has paid the fee tied to the petition covering the worker’s stay.
• Exemptions: The national interest path could help in limited, high-impact cases, but expect strict standards, heavy documentation, and slowed timelines.
• Legal challenges: Business groups and immigration advocates are preparing lawsuits arguing the rule harms competitiveness and exceeds executive authority. For now, the proclamation stands and companies are moving to comply.

What to watch next:
– Agency guidance on proof of payment and exemption requests.
– Wage-policy updates likely to push salaries higher for qualifying roles.
– The next H-1B cap season (lottery) as an early test of employer willingness to file at the elevated cost.
– Agencies’ report after the lottery on whether to extend the fee beyond the initial 12 months.

Human impact and family considerations

Beyond budgets and filings, the change hits families hardest:
– Parents worry about school disruptions if travel becomes risky.
– Spouses on H-4 visas fear separation during visa stamping.
– Employees in long green card queues face tough choices about career moves and international visits.

These pressures are prompting conversations about relocation to more welcoming markets or accelerating permanent residence plans.

Practical bottom line: stay put if you are in status, return if you are abroad, and start long-term planning with your employer now.

Resources and where to get official information

The government is expected to publish step-by-step instructions as implementation begins. For baseline program details and future updates, see the USCIS H‑1B program page:
– https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations

For now, the center of gravity sits with employers. Each company must decide which positions merit a $100,000 annual fee and how to handle renewals due over the next two years. Workers should prepare for tighter mobility, stricter travel choices, and a stronger push for permanent residence.

As the calendar moves toward September 21, 2025, the most practical advice is simple: stay put if you are in status, come back if you are abroad, and start long-term planning with your employer now.