The Latest on the New $100,000 H-1B Fee: Understanding the Change, Its Impact, And How to Pay

On September 19, 2025, President Donald Trump signed a proclamation introducing a $100,000 fee for new H-1B visa petitions, effective September 21, 2025. This represents one of the most significant changes to the H-1B program in decades, sending shockwaves through the technology, finance, and consulting sectors that rely heavily on skilled foreign workers.

The Rationale Behind the Fee

The Trump administration positioned the new fee as a measure to protect American workers and curb alleged abuse of the H-1B visa program. The proclamation cites several concerns:

Labor Market Impact: The administration highlighted unemployment rates for recent computer science graduates (6.1%) and computer engineering graduates (7.5%) that exceed those of other majors. Federal Reserve Bank of New York data shows computer occupation unemployment rates have more than doubled.

Worker Displacement: The proclamation specifically called out instances where companies laid off thousands of American employees while simultaneously hiring H-1B workers. One software company was approved for over 5,000 H-1B workers in FY 2025 while announcing layoffs of more than 15,000 employees. Some American workers reportedly were forced to train their foreign replacements and sign non-disclosure agreements as a condition of severance.

Wage Suppression: A 2020 Economic Policy Institute study found that most H-1B employers pay migrant workers less than market-rate salaries, with many accepting positions for as little as $60,000 annually—well below the typical $100,000+ salaries paid to U.S. technology workers.

The administration argues the fee will discourage companies from "spamming the system," ensure only the highest-skilled workers are sponsored, and incentivize hiring American workers. Commerce Secretary Howard Lutnick stated that "all the big companies are on board" with the new structure.

How Companies Have Responded

Immediate Chaos

The announcement triggered immediate panic. Initial wording of the proclamation created widespread confusion about whether existing visa holders would be subject to the fee upon reentry.

Major technology companies issued urgent travel advisories:

• Amazon urged employees: "We realize this is short notice but returning soon is advisable and you should make every effort possible to clear U.S. customs before 12:00 a.m. EDT on Sunday, September 21, 2025."
• Microsoft, JPMorgan Chase, and Goldman Sachs issued similar emergency communications

Workers abandoned holidays and family visits to rush back before the deadline.

Clarification and Scope

By September 20, government agencies provided clarification. The fee applies only to new H-1B petitions filed after September 21, 2025, on behalf of beneficiaries outside the United States. The fee does not apply to:

• Petitions filed before September 21, 2025
• Current holders of valid H-1B visas
• Renewals or extensions of existing H-1B status
• Current H-1B holders traveling internationally

The White House also confirmed the fee is a one-time charge per petition, not an annual payment.

Industry Impact

Major Tech Companies:  Per CNN and CNBC, top H-1B employers for FY 2025 include Amazon (10,000+ workers), Microsoft, Meta, Apple, and Google (4,000+ each). For these companies, aggregate annual costs could potentially exceed $1 billion at current hiring levels.

Indian IT Outsourcing Firms: Analysts estimate the fee could reduce margins by approximately 100 basis points (1%) and impact earnings per share by roughly 6%. Major firms like Tata Consultancy Services, Infosys, and Wipro saw stock prices decline. These companies are adapting by increasing local U.S. hiring, utilizing near-shore centers in Mexico and Canada, and expanding offshore work.

Startups and Smaller Firms: The $100,000 fee may effectively price smaller companies out of the H-1B market, limiting access to global talent.

Universities and Nonprofits: Despite being "cap-exempt," these institutions must pay the new fee for new petitions, creating budget challenges.

International Response

With 71% of H-1B visa holders being Indian nationals, India's Ministry of External Affairs warned of "humanitarian consequences by way of the disruption caused for families."

Countries including the UK, Canada, and Dubai view the fee as an opportunity to attract skilled workers. The UK is reportedly exploring proposals to drop visa charges for top-level professionals, creating a stark contrast with the U.S. approach. British AI startup leaders reported receiving over 1,000 direct messages from highly skilled professionals considering leaving the U.S. within days of the announcement.

The Latest on Payment Instructions: How to Comply

On October 20, 2025, USCIS released official guidance detailing the payment process. Here's a summary from a recent communication from Envoy Global: 

Payment Method

All new H-1B petitions subject to the proclamation must include payment submitted through pay.gov using the form titled "H-1B VISA PAYMENT TO REMOVE RESTRICTION." Payment must be completed prior to filing the petition.

Required Documentation

At filing, employers must include:

• A copy of the payment confirmation from pay.gov, OR
• Evidence of an approved exception from the Secretary of Homeland Security

Critical: Petitions without required documentation will be denied without further review.

Refund Policy

If USCIS does not approve a petition, the agency will issue a full refund. Petitioners must enter complete banking information in the payment form to ensure proper reimbursement.

Who Must Pay

The fee applies to petitions filed on or after September 21, 2025, for:

• Foreign nationals outside the U.S. who do not hold a valid H-1B visa
• Beneficiaries inside the U.S. for whom the petition requests consular notification
• Beneficiaries whose change of status, amendment, or extension petition is unsuccessful, requiring them to obtain a visa abroad

Exception Process

In extraordinarily rare circumstances, the Secretary of Homeland Security may grant exceptions if the beneficiary's presence is in the national interest. Employers must submit requests to: H1BExceptions@hq.dhs.gov

Detailed guidance on exception criteria has not yet been released.

Looking Ahead

The proclamation includes provisions for further reform:

• The Department of Labor will revise and raise prevailing wage levels
• The Department of Homeland Security will prioritize high-skilled, high-paid workers in the H-1B lottery

The fee restriction expires September 21, 2026, unless extended. Legal challenges are anticipated.

Key Takeaways for Employers

1. Budget Impact: Factor the $100,000 one-time fee into immigration budgets for roles requiring new H-1B sponsorship
2. Strategic Planning: Evaluate which positions justify the increased cost and consider alternative visa categories
3. Payment Compliance: Complete payment via pay.gov before filing and retain confirmation receipts
4. Current Employees: Existing H-1B holders are unaffected and may continue international travel. Extensions and renewals do not require the new fee
5. Exception Exploration: Organizations with national interest arguments should begin compiling documentation

The new H-1B fee represents a fundamental shift in U.S. immigration policy that will reshape how American companies approach global talent acquisition. Whether it achieves its stated goals of protecting American workers while maintaining U.S. competitiveness remains to be seen.

For further information and perspectives, try one of these:

• Fragomen: United States: Second Court Challenge to New H-1B Restrictions and $100,000 Fee is Filed

• Erickson Immigration: Guidance in $100,000 H-1B Fee

• WERC: What the $100,000 H-1B Fee Tells Us About the Future of Global Talent Mobility