Employers hiring foreign professionals on H-1B visas now face a one-time $100,000 charge for new H-1B petitions starting September 21, 2025, part of a broader hardening of U.S. immigration policy that also tightens Green Card scrutiny and raises fresh questions for lawful permanent residents sponsoring parents. The shift, advanced under President Trump in 2025, combines higher costs, tougher vetting and new enforcement signals that could reshape both temporary work pathways and family-based immigration.
The policy change centers on a proclamation that said there has been “systemic abuse” of the H-1B program and sets out to “prioritize American workers over foreign labor.” The new $100,000 fee applies to new H-1B petitions, with particular impact on candidates outside the United States or those requesting consular processing, marking a dramatic jump from the previous $2,000–$5,000 range. The sudden increase adds a steep upfront cost for companies seeking to hire global talent and injects new uncertainty into hiring plans in technology, finance, healthcare and research that rely on H-1B workers. According to immigration practitioners and community groups tracking the change, Indian professionals—who account for roughly 70% of H-1B recipients—have cancelled international travel or rushed to re-enter the U.S. before the effective date to avoid complications tied to the fee and reprocessing risks.
Beyond the fee, employers face tighter eligibility rules and stepped-up enforcement. Agencies are implementing higher wage requirements and more rigorous compliance checks, while placing a heavier burden on companies to prove positions cannot be filled by U.S. workers. Officials have also tied approvals more directly to a “public charge” test, pressing employers to establish that H-1B holders will not require government support. Together, the changes signal an era of heightened Green Card scrutiny and front-end pressure on H-1B petitions that could slow sponsorship plans and force firms to reassess headcount strategies, hiring timelines and offer budgets.
The administration has also ended automatic extensions of Employment Authorization Documents, a move that hits spouses of H-1B workers and F-1 students on Optional Practical Training. Without the automatic cushion that previously allowed continued work while renewals processed, many face immediate job risk. As one summary put it:
“Nearly 70% of all H-1B visa holders in the US are Indian, many with spouses who now risk losing their jobs as their EADs expire.”
Employers that rely on dual-income transfers and international student pipelines warn the abrupt shift could lead to lapses in employment, payroll disruptions and talent losses at short notice, particularly in sectors where roles are hard to backfill quickly.
Family-based immigration is also under fresh pressure. Advisers say the administration’s long-term objective includes reducing family-based immigration overall, potentially phasing out categories that allow U.S. citizens to sponsor parents, siblings and adult children. As outlined by policy materials circulating since early 2025,
“The administration may seek to reduce family-based immigration by limiting eligibility to immediate family members, such as spouses and minor children while phasing out categories for extended family members like siblings and parents of U.S. citizens.”
While any formal changes would likely face court challenges and legislative hurdles, the signal alone has unsettled families considering whether to start sponsorship processes that can take years and require sustained financial and documentary support.
Naturalization—the step from Green Card holder to citizen—has grown more complex at the same time. Applicants now face tighter background checks that include “neighbourhood investigations,” a harder civics test and new documentary demands such as testimonial letters from neighbors, employers and associates. Officials framed the new process in stark terms:
“The US has announced that lawful permanent residents or green card holders will have to undergo ‘neighbourhood investigations’ before being given American citizenship through the process of naturalization.”
The Department of Justice, meanwhile, has placed greater emphasis on denaturalization in cases involving alleged fraud or past misrepresentation. In language that has alarmed immigrant communities and civil rights groups, an official summary noted:
“The US government is actively working to strip some Americans of their citizenship. The revocation of US citizenship status is currently a priority for the US Department of Justice.”
Combined, the changes present a high-cost, high-scrutiny environment for companies and families alike. The $100,000 fee for H-1B petitions places a significant upfront burden on employers that had grown used to a much lower cost envelope. For smaller firms and startups, the new price tag could deter filings altogether or shift hiring overseas, where teams can be built without U.S. sponsorship costs. Large multinationals may still file but adjust their global hiring mix, potentially lean more on intra-company transfers where possible, or delay offers that involve consular processing until budget cycles catch up.
For H-1B professionals already in the United States, the fee and the broader enforcement push are likely to influence mobility and travel choices. Lawyers report a rise in clients postponing international trips to avoid consular processing exposure near the effective date, while some have tried to re-enter the U.S. early to reset their timelines. The end of automatic EAD extensions is prompting employers to map out contingency plans to cover roles if spouses or recent graduates lose work authorization, as renewal delays ripple through payroll and project schedules.
Lawful permanent residents sponsoring parents face a different kind of uncertainty. Even the potential elimination of parent categories could derail long-planned reunifications. Families weighing U.S. residence for elderly parents must now consider the possibility that avenues could narrow or close, alongside the new risks that tougher background checks pose for their own citizenship plans. The requirement for “neighbourhood investigations” and testimonial letters adds a layer of community-level scrutiny that many applicants have never encountered, with practical questions about who to approach for letters, how investigations are conducted, and what standards adjudicators will apply when weighing local feedback.
Processing backlogs, which had eased somewhat in some categories in prior years, are again a flashpoint. Applicants report longer waits for interviews and more intensive questioning for spouses and family members at consular and local offices. Those patterns, combined with the higher denial risk described by attorneys across employment and family streams, feed a climate of caution where some would-be applicants delay filings, while others push ahead to lock in dates before possible further rule changes. The term Green Card scrutiny has moved from legal memos to common conversation in immigrant communities as people describe lengthier document requests, additional security checks and stricter interpretations of eligibility rules.
The ripple effects extend beyond visa holders and sponsors. As one round-up of reactions noted:
“Green card applicants, asylum seekers, and those under temporary protected status will also be affected. Analysts say the rollback of a key Biden-era safeguard could leave thousands unemployed, slow down tech sectors, and strain families awaiting visa renewals.”
In sectors where H-1B workers play a central role, including software, chip design, AI, healthcare IT and advanced manufacturing, managers and recruiters are recalibrating talent plans, with some projecting slower hiring or higher offers to offset uncertainty and the $100,000 fee shock. Universities that rely on OPT placements for international graduates are warning of lost pathways to work if EADs lapse, cutting off a common bridge to early-career roles.
Companies and applicants looking for clarity have found the official rule text and policy notices decisive in tone. The proclamation that cited “systemic abuse” and the goal to “prioritize American workers over foreign labor” sets a rhetorical frame that points to more enforcement and fewer waivers ahead. Employers are responding by increasing documentary evidence at the outset of H-1B petitions, expanding labor market test files to show exhaustive recruitment, and budgeting for site visits and audits. The higher wage bar is also pushing some sponsors to restructure positions to senior levels where prevailing wages align with the market at the new compliance thresholds.
While fee increases and enforcement shifts often come with a phase-in, the sharp jump to $100,000 by September 21, 2025 has left little time to adapt. The immediate behavior changes—travel cancellations, early re-entries, and halted overseas recruiting—reflect a calculus shaped by both the price and the risk that additional H-1B petitions will meet closer scrutiny or denial. For Indian nationals, who hold the largest share of H-1B slots, the pile-up of shocks—fee surge, EAD extension rollback, and the prospect of squeezed family pathways—has concentrated anxiety in communities that had already been managing long Green Card queues.
The policy direction on family-based immigration adds another layer of complexity for U.S. citizens who had planned to sponsor relatives. Statements that categories for parents, siblings and adult children could be phased out—leaving only spouses and minor children—have spurred a surge of consultations with attorneys to assess options. If implemented, the shift would be one of the most consequential restructurings of family immigration in decades, redrawing a system that has long prioritized reunification and set expectations for multigenerational migration patterns. That prospect, even before formal rules are issued, is already changing decisions about whether to file now or wait, and whether families can meet evolving affidavit, support and documentation standards.
In parallel, the tougher naturalization track places pressure on long-term residents who had expected to apply for citizenship after meeting residency and tax requirements. The expansion of background checks into “neighbourhood investigations,” the harder civics exam and the new emphasis on testimonial letters from community members and employers together raise the costs—both in time and in social capital—of an application. For some, the risk of denaturalization if past mistakes or omissions are uncovered may prompt caution or delay, particularly as official language underscores that
“The US government is actively working to strip some Americans of their citizenship. The revocation of US citizenship status is currently a priority for the US Department of Justice.”
Attorneys and advocacy groups describe a wave of calls from employers and families seeking to understand what concrete steps to take amid shifting rules. Some recommend earlier filings for H-1B petitions to get ahead of the fee or to budget for it in the current fiscal cycle, while others advise families to assemble thorough records now in case categories tighten later. Industry groups are modeling the business impact of the $100,000 fee on project costs and timelines, especially for roles that had been filled via consular processing. Meanwhile, community organizations are preparing workshops for Green Card holders on the new naturalization standard, including how to gather testimonial letters and prepare for local-level inquiries.
Public guidance remains a crucial resource for both employers and applicants. The USCIS H-1B specialty occupations page outlines baseline program requirements and processing mechanics, though the 2025 changes add layers not captured in older summaries. In practice, immigration counsel say the safest course is to assume more documentation, higher wages, longer timelines and tighter readouts of eligibility, whether the filing is an H-1B petition or a family application that may face sharper Green Card scrutiny at interview.
The immediate horizon suggests more of the same: increased fees and vetting at the work visa stage, cautious messaging about family categories, and a stiffer bar for citizenship. With “systemic abuse” and “prioritize American workers over foreign labor” framing the enforcement agenda, companies and families who depend on predictable pathways are bracing for added costs and closer review. For many, the question is no longer whether rules are getting tougher, but how quickly they can adjust plans and paperwork to meet the new standard—and whether the door for parents and other relatives will still be open by the time their applications reach the front of the line.
This Article in a Nutshell
A 2025 proclamation raises the one-time fee for new H-1B petitions to $100,000 effective September 21, 2025, and tightens wage, eligibility and enforcement rules. The policy ends automatic EAD extensions, risking jobs for spouses and OPT graduates, and signals potential reductions in family-based immigration categories including parent sponsorships. Naturalization procedures now include neighbourhood investigations, stricter civics tests and testimonial letters. Employers, applicants and families face higher costs, longer waits and increased documentation burdens.
