On Sept. 19, 2025, President Trump signed a Presidential Proclamation requiring a $100,000 payment for certain new H-1B cases, effective Sept. 21, 2025. The H-1B program has long served as a bridge between U.S. employers and skilled foreign professionals, and this proposed fee would mark one of the most dramatic shifts in its history.
The plan carries major implications for employers who depend on global talent, for foreign professionals seeking to contribute their skills to the U.S. economy, and for the industries that rely on innovation and technical expertise. Understanding what this proposal includes, why it was introduced, and how it could reshape the immigration landscape is essential for anyone involved in hiring or maintaining nonimmigrant workers.
Understanding the H-1B Visa Program
The H-1B visa allows U.S. employers to hire foreign professionals in specialty occupations that require advanced knowledge and at least a bachelor’s degree. It is a cornerstone of U.S. immigration law for industries that depend on high-skilled labor, particularly in science, technology, engineering, and mathematics.
Before exploring how new fees could impact this program, it is important to understand its structure and purpose.
Purpose and Eligibility Criteria for the H-1B Visa
The H-1B visa is designed for positions that require specialized theoretical or technical expertise. Eligible applicants must hold a degree or equivalent experience in a related field, and employers must show the position qualifies as a ‘specialty occupation’ under the Immigration and Nationality Act and USCIS regulations; separately, they must obtain a DOL-certified LCA covering wage and working-conditions attestations.
How Employers Sponsor Skilled Foreign Workers
To hire an H-1B professional, employers must first file a Labor Condition Application with the Department of Labor confirming payment of at least the required wage (prevailing or actual, whichever is higher), that employing the H-1B worker will not adversely affect the working conditions of similarly employed U.S. workers, and that proper notice has been provided. The employer then files Form I-129 with USCIS, supported by proof of the employee’s qualifications and the company’s need for the role.
The Lottery Process and Annual Cap Limitations
Each fiscal year, USCIS accepts a limited number of H-1B petitions—currently capped at 85,000, including 20,000 for those holding advanced U.S. degrees. When petitions exceed this limit, USCIS conducts a random lottery. This process often creates uncertainty for both employers and applicants, particularly smaller companies that depend on consistent access to global talent.
Contributions of H-1B Professionals to the U.S. Economy
H-1B professionals play a critical role in sustaining U.S. competitiveness in the global market. They contribute to growth in the technology, healthcare, and research sectors, supporting innovation and job creation across related industries. These contributions demonstrate that the H-1B program supports both economic expansion and knowledge transfer within the United States.
Common Misconceptions About the Program
Public discussion of the H-1B program often overlooks the strict compliance obligations placed on employers. Companies must meet extensive documentation and wage standards, and violations can lead to severe penalties. Another misconception is that H-1B workers displace U.S. labor; in reality, the program targets specialized roles where domestic shortages exist.
Trump’s Proposed $100,000 H-1B Fee Explained
The proposed $100,000 H-1B fee would dramatically increase the cost of hiring foreign professionals. The plan, introduced as part of President Trump’s broader immigration reform agenda, positions the fee as a way to encourage companies to hire American workers while still allowing access to skilled international talent when necessary.
This proposal has sparked immediate concern among businesses, universities, and advocacy groups that depend on global expertise. The potential cost increase could reshape hiring decisions, alter business planning, and prompt new strategies for workforce development.
Overview of the Proposed Policy
The proposal reportedly calls for a $100,000 fee for each new H-1B petition filed with USCIS. USCIS clarified the $100,000 payment applies to certain H-1B petitions filed on/after Sept. 21, 2025 for beneficiaries abroad without a valid H-1B visa; it does not apply to amendments, changes of status, or extensions filed for workers inside the U.S.
Who Would Be Required to Pay the New Fee
Under the current structure, employers cover most H-1B costs, including filing fees, legal expenses, and premium processing. If implemented, this new fee would also fall on employers, raising the total cost of a single H-1B petition well beyond the reach of smaller businesses. For multinational corporations, it could still mean millions of dollars in additional yearly expenses depending on the size of their visa programs.
How the Policy Differs From Current Filing Costs
Since Apr 1 2024, typical government fees (before the $100,000 payment) include: registration $215 (cap-subject), I-129 $780 (or $460 for small/nonprofit), ACWIA $750 or $1,500, Fraud $500, Asylum Program Fee $600 ($300 small, $0 nonprofit). Certain ‘50/50’ employers also owe $4,000 on qualifying filings. The proposed $100,000 fee would represent a massive departure from existing law. The Department of Labor and USCIS currently assess smaller fees to fund fraud prevention and workforce training programs, but no existing fee comes close to this magnitude.
Key Timelines and Implementation Details
USCIS clarified the $100,000 payment applies to certain H-1B petitions filed on/after Sept. 21, 2025 for beneficiaries abroad without a valid H-1B visa; it does not apply to amendments, changes of status, or extensions filed for workers inside the U.S. Employers tracking this proposal should stay informed through trusted immigration counsel to anticipate filing changes and deadlines once the policy advances.
The Rationale Behind the Proposed Fee Increase
The reasoning behind the proposed $100,000 fee stems from economic and political priorities emphasizing domestic job protection. The administration has framed the proposal as an effort to reduce reliance on foreign labor and promote higher wages for U.S. workers.
Political and Economic Motivations Behind the Proposal
President Trump and his economic advisors have argued that increasing H-1B costs will incentivize companies to invest more heavily in training American workers. This aligns with the administration’s broader goals of reshaping trade, manufacturing, and labor policy around national self-sufficiency.
Arguments for Protecting U.S. Workers
Supporters of the policy suggest that high fees could curb what they perceive as overuse of the H-1B system by large technology companies. They believe that pricing adjustments could restore opportunities to U.S. workers in competitive fields. However, critics counter that these assumptions overlook the economic realities of specialized labor shortages, particularly in engineering and computer science.
Industry Pushback and Public Reaction
Industry groups, universities, and organizations such as the American Immigration Council have expressed strong opposition to the proposal. They argue that the fee would suppress innovation and discourage international collaboration. Many warn that talented foreign graduates—especially in science and technology—could redirect their careers to countries like Canada or the United Kingdom, weakening the United States’ competitive position in global markets.
How the $100,000 H-1B Fee Could Affect U.S. Employers
The proposed $100,000 H-1B filing fee would have a sweeping effect on employers of all sizes. Beyond the immediate financial burden, it could change how businesses recruit, budget, and manage global talent. Employers that rely heavily on international professionals—especially those in science, technology, and healthcare—would need to rethink their workforce strategies.
Impact on Startups and Small Businesses
Smaller companies often depend on the H-1B program to fill specialized roles when domestic candidates are unavailable. A six-figure filing fee would make participation financially impossible for many of these organizations. Without access to this talent, startups could face slower product development, reduced competitiveness, and delayed innovation.
Changing Hiring and Retention Strategies
Larger corporations may continue using the H-1B program but with stricter internal selection criteria. Many would prioritize only the most essential roles for sponsorship, narrowing opportunities for qualified foreign professionals. Human resources teams would likely shift toward remote international arrangements or offshoring to maintain access to global talent without incurring such high costs.
Compliance Risks for Employers
Even without new fees, compliance remains one of the most demanding aspects of the H-1B process. Employers must maintain detailed records, comply with wage requirements, and be ready for Department of Labor audits. A fee of this scale could increase pressure to perfect every filing, since a single error would carry extraordinary financial consequences.
Financial Implications for Corporate Planning
Adding a $100,000 expense per worker would significantly alter how companies forecast budgets for recruitment and legal compliance. Employers could redirect resources away from professional development or technology investment to cover visa expenses. Some may even reconsider expanding operations in the United States, which could affect long-term economic growth.
Long-Term Labor Market Effects
If implemented, the policy could disrupt entire sectors of the U.S. economy. Industries such as information technology and engineering rely heavily on foreign professionals to meet project demands. Restricting that flow could slow innovation, reduce productivity, and push major companies to move operations abroad to countries with more accessible immigration systems.
Will Foreign Talent Look Elsewhere? The Risk of Global “Brain Drain”
International professionals considering careers in the United States follow policy developments closely. A sharp increase in H-1B costs could signal that the U.S. is closing its doors to global talent, prompting workers to seek opportunities in countries that actively recruit high-skilled immigrants.
Rising Competition From Canada, the United Kingdom, and Australia
Countries such as Canada, the United Kingdom, and Australia have streamlined visa programs for professionals in technology and research. These nations offer faster processing, predictable costs, and clearer pathways to permanent residence. If the U.S. raises barriers through high fees, many skilled workers will likely choose these alternatives instead.
The Dilemma for International Students and STEM Graduates
Thousands of international students complete degrees at U.S. universities each year under F-1 visas. Many rely on the H-1B program to continue working after graduation. An increase in filing costs could discourage these graduates from pursuing careers in the United States, leading to talent loss in science, engineering, and technology fields that depend on their expertise.
Consequences for Innovation and Research
The H-1B visa program has fueled research partnerships and global collaboration across universities, laboratories, and private companies. Limiting access to foreign talent could slow progress in emerging sectors such as artificial intelligence, biomedical engineering, and renewable energy. Reduced participation from international researchers could affect both innovation and the broader economy.
The Potential Decline of the U.S. as a Destination for Talent
For decades, the United States has been the world’s leading destination for skilled workers. A $100,000 filing fee would challenge that reputation, suggesting to global professionals that opportunities elsewhere are more attainable. Over time, this shift could reduce the diversity, innovation, and global competitiveness that have defined the American workforce.
Legal Challenges and the Future of the H-1B Program
The proposed fee will almost certainly face legal challenges if it moves forward. Immigration law is governed by complex administrative procedures, and any new rule must meet strict standards for fairness and justification.
Potential Constitutional and Administrative Law Obstacles
Under the Administrative Procedure Act, federal agencies must demonstrate that new regulations serve a legitimate purpose and follow a transparent rulemaking process. Opponents could argue that the $100,000 fee is arbitrary and imposes unreasonable financial barriers that exceed congressional intent for the H-1B program.
The Role of Business and Advocacy Groups in Opposition
Organizations such as the American Immigration Council, technology associations, and university coalitions are expected to challenge the proposal. These groups often argue that access to international talent strengthens U.S. industries and helps fill essential gaps in science and engineering. Their involvement could influence how courts and policymakers assess the rule’s validity.
How the Courts Could Influence Implementation
Even if finalized, the proposal could be delayed or blocked through litigation. Courts may issue injunctions if the rule is found to conflict with existing statutes or to have been enacted without sufficient evidence or public comment. Legal outcomes will likely determine how quickly—or whether—the policy takes effect.
Broader Implications for Future Immigration Reform
This debate underscores the broader tension between economic protectionism and global integration. The outcome of this proposal could shape future legislation governing skilled immigration, potentially affecting how the U.S. approaches work visas, green card caps, and labor certification in the years ahead.
What Employers Should Do Now
Employers should begin evaluating how potential policy changes could affect workforce planning. Staying proactive allows businesses to prepare for new costs and maintain access to international professionals if the fee structure changes.
Evaluating Workforce Impact and Budget Scenarios
Companies should assess how a $100,000 filing fee would alter budgets and hiring strategies. Financial modeling can help determine whether future sponsorships remain viable or if alternative hiring structures are needed.
Exploring Alternative Visa Categories
Employers may wish to explore other immigration categories, such as the L-1 visa for intracompany transferees, the O-1 visa for individuals with extraordinary ability, or TN status for Canadian and Mexican professionals under trade agreements. These categories could provide flexibility if the H-1B becomes financially restrictive.
Strengthening Compliance and Documentation Processes
Maintaining complete and accurate documentation is more important than ever. Employers should review their compliance procedures for Labor Condition Applications, USCIS filings, and Department of Labor audits to minimize delays and potential penalties.
Need H-1B Visa Help? Contact Pollak PLLC Today
Employers and professionals navigating these proposed policy changes deserve clear answers and practical guidance. Pollak PLLC assists clients nationwide with H-1B petitions, extensions, and compliance reviews. We monitor every policy development to ensure our clients remain informed and prepared for future immigration shifts.
If you need to understand how this proposed fee or other immigration updates could affect your company or your career, contact Pollak PLLC to schedule a consultation. Our team of Dallas and Fort Lauderdale immigration lawyers will provide the strategic support and personalized service you need to move forward confidently.
