Trump’s 2025 H-1B Crackdown: $100K Fee and Reform Act

Employers that rely on the H‑1B visa were hit with a sudden and severe shock in September 2025, when former President Donald Trump moved to impose a $100,000 Fee for New H-1B Petitions and backed sweeping new limits under the H-1B and L-1 Visa Reform Act of 2025. Together, the changes amount to one of the most restrictive turns for high‑skilled work visas in years, sending waves of concern through technology firms, outsourcing companies, universities, and foreign professionals who saw their career plans upended almost overnight.

Sudden fee: $100,000 for new H‑1B petitions

The first blow came on September 19, 2025, when Trump signed a presidential proclamation that requires employers to pay $100,000 for each new H‑1B petition filed on or after September 21, 2025.

• The fee applies only to new petitions filed on or after September 21, 2025.
• It does not apply to existing H‑1B visa holders or to extensions already in place.
• Still, it pushes sponsorship costs from previous ranges of roughly $2,000–$5,000 (filing and related fees) to a level many small and mid‑size firms call unaffordable.

Trump’s administration presented the move as part of an “America First” policy, arguing the fee would:

• Reduce alleged abuse of the H‑1B system,
• Encourage companies to hire more U.S. workers, and
• Reserve visas for the most highly paid and specialized foreign staff.

The administration said the fee would last at least 12 months from September 21, 2025, with an option to extend it—creating significant uncertainty for employers and international students hoping to convert U.S. degrees into U.S. jobs 🇺🇸.

Fee stacks on existing USCIS charges

Immigration lawyers emphasize the new charge is in addition to ordinary USCIS filing and anti‑fraud fees. According to U.S. Citizenship and Immigration Services, employers already must pay several separate fees when filing an H‑1B petition, including a base filing fee and, for many companies, an additional training fee.

• The proclamation does not replace existing fees.
• It adds a very large extra cost, making sponsorship a financial hurdle likely bearable only for the largest or most profitable employers.

H-1B and L-1 Visa Reform Act of 2025: policy and compliance changes

If the proclamation was the financial shock, the H-1B and L-1 Visa Reform Act of 2025 delivered the policy and compliance changes that reshape program eligibility and employer obligations.

Tiered selection and wage changes

The law introduces a tiered system prioritizing applicants who have:

• Higher levels of education, especially in STEM fields (science, technology, engineering, math).
• Higher offered wages.

It also raises the wage floor by requiring H‑1B workers be paid at least the median wage for skill level 2 for the occupation in the area of employment.

• Supporters: say this prevents companies from using lower‑paid foreign staff to undercut U.S. workers.
• Critics: contend many entry‑level roles (research, non‑profit) cannot meet these pay levels.

Non‑displacement window and public posting requirement

The Act doubles the non‑displacement window:

• From 90 days to 180 days before and after placing an H‑1B worker.

Consequences:

• Employers must promise they have not laid off, and will not lay off, U.S. workers in similar positions for a longer period.
• Job openings intended for H‑1B workers must be publicly posted, forcing companies to document that positions were advertised and that U.S. workers had a real chance to apply.

This increases paperwork, evidentiary demands, and audit exposure for compliance teams.

Shorter maximum H‑1B duration

The law tightens time in status:

• Traditional allowance: up to six years (commonly in three‑year blocks, with exceptions).
• New general cap: three years, with limited exceptions up to a maximum of six years.

Effect:

• Employers may be less willing to invest in long‑term training for foreign workers, given the shorter horizon unless narrow exceptions apply.

Narrower definitions and stronger enforcement

The Act also:

• Tightens definitions of “specialized knowledge”, affecting both H‑1B and L‑1 classifications.
• Increases frequency of compliance audits.
• Strengthens penalties if duties, wages, or locations differ from petitioned promises.

For L‑1 transfers, these changes raise evidentiary burdens and reduce flexibility for moving mid‑level or lightly experienced staff.

Combined impact: a “double blow”

Analysts and industry groups describe the package as a double blow:

1. Financial: the $100,000 Fee for New H-1B Petitions drastically alters cost–benefit calculations.
2. Administrative/legal: the Act tightens eligibility, raises wage requirements, and expands compliance risks during inspections.

According to analysis by VisaVerge.com, many companies that previously filed H‑1B petitions routinely now view each filing as a high‑stakes decision reserved for very few candidates.

Who is affected and how

Existing H‑1B holders (in the U.S.)

• Not directly charged the new $100,000 fee for extensions or employer changes covered by the proclamation.
• Still affected by:
  • Limits on extensions,
  • Tougher wage rules, and
  • Stricter site visit checks.
• A move to a different employer or location may trigger further scrutiny and risk of denial.

Prospective applicants abroad

• Face tougher employer decisions: will potential sponsors pay the hefty fee and meet higher wage floors?
• L‑1 transfers now require more detailed evidence and have a higher chance of refusal.
• Families face high stakes: a single denied petition can disrupt schooling, spouses’ careers, and settlement plans.

Employers: large vs. small

• Global tech giants may still pay the $100,000 for a very small number of irreplaceable candidates (AI, cybersecurity, chip design).
• Smaller start‑ups, research labs, hospitals, and public universities may stop hiring foreign workers altogether due to cost.
• Many companies must reassess hiring plans for 2026 and beyond, deciding which roles justify sponsorship.

Policy debate and wider consequences

Worker advocates supporting the reforms argue they are overdue and necessary to:

• Stop outsourcing firms from displacing U.S. workers,
• Extend the non‑displacement period to 180 days,
• Raise wage floors and require public job postings to prioritize U.S. applicants.

Supporters claim the result will be foreign professionals who clearly complement the U.S. workforce—those with rare, well‑paid skills.

Business groups and many university leaders counter that the changes:

• Go too far, making the U.S. less competitive for high‑skilled migrants,
• Risk shifting jobs, investment, and research offshore,
• Could push foreign students to study in countries with cheaper, more predictable post‑study work options.

For international students, the $100,000 Fee for New H-1B Petitions sends a stark message: turning a U.S. degree into a U.S. job just became far harder.

Key takeaway: The door to H‑1B and related visas has not closed, but it is now considerably narrower, more expensive, and more uncertain than in recent memory.

Practical implications moving forward

• Employers are reviewing job-by-job whether H‑1B sponsorship is still viable under new cost and compliance pressures.
• Compliance teams must prepare for more documentation, longer non‑displacement commitments, and increased scrutiny.
• Foreign professionals and students must re‑evaluate career paths and consider alternatives if sponsorship is unlikely.

Many firms and individuals are adjusting in real time, deciding which roles justify sponsorship and which will be offered only to U.S. citizens or permanent residents. The combination of a $100,000 fee and the H-1B and L-1 Visa Reform Act of 2025 marks a significant shift in U.S. high‑skilled immigration policy with broad ramifications for employers, workers, and higher education institutions.