Loune-Djenia Askew, Esq.
Oct 1, 2025
On September 21, 2025, the Trump administration launched a dramatic overhaul of the H-1B visa program: a new one-time $100,000 fee for each new H-1B petition.
On September 21, 2025, the Trump administration launched a dramatic overhaul of the H-1B visa program: a new one-time $100,000 fee for each new H-1B petition. This represents a seismic shift from the existing framework, where employers typically paid anywhere from $2,000 to $5,000 (depending on size and other factors) to sponsor an H-1B worker. The implications for businesses, foreign workers, and U.S. competitiveness could be profound.
What the H-1B Visa Is and Who Uses It
The H-1B visa is a nonimmigrant classification that allows U.S. employers to hire foreign professionals to fill “specialty occupations”—jobs that typically require at least a bachelor’s degree or its equivalent. Common roles include software developers, engineers, researchers, data scientists, architects, and other technically demanding positions.
The visa is initially granted for up to three years and can be extended for another three, making the total potential duration six years (with some exceptions).
Congress sets a cap on how many new H-1Bs are issued each year. The statutorily fixed limit is 65,000, plus an additional 20,000 for foreign professionals holding U.S. master’s degrees or higher.
As of recent data, the bulk (around 65 %) of H-1B roles are in computer-related occupations.
What’s New: The $100,000 Fee
Under the new policy, any employer filing a new H-1B petition must include a $100,000 payment along with the application.
This new fee is in addition to existing fees and obligations under the H-1B program.
The rule went into effect at 12:01 a.m. Eastern time on September 21, 2025. It does not apply to ongoing visa holders renewing or extending their status, nor to visas already issued before that date.
Why the administration argues this is needed
The White House frames the fee as a mechanism to curb abuses of the H-1B system—particularly by outsourcing firms and companies using the program to suppress wages. The proclamation expressly states that employers have leveraged the program to replace American workers with foreign labor undercutting wages, especially in IT sectors.
Fallout & Reactions
India, which accounts for the majority of H-1B visas granted, responded quickly. Its foreign affairs ministry warned that the fee could cause disruptions for families, with ripple effects on bilateral relations.
Big tech, finance, and consulting firms that have long depended on H-1B talent are bracing for the impact. JPMorgan economists predict that the new fee might reduce the number of monthly visa approvals by around 5,500.
Meanwhile, the American Medical Association has petitioned for doctors, residents, and fellows to be exempted on humanitarian and public health grounds, arguing that many underserved areas depend on foreign-trained physicians.
What about U.S. workers?
One of the administration’s stated goals is to “protect American workers” from wage suppression and unfair competition. However, many economists and labor market analysts argue that H-1B workers generally complement—not displace—American labor. Historically, in fields with heavy H-1B usage, low unemployment has reflected high demand for specialized labor that domestic sources couldn’t fully supply.
Many also point out that the $100,000 surcharge could discourage firms from sponsoring foreign talent, which may slow innovation, reduce global competitiveness, and push companies to relocate talent-hiring efforts abroad.
What This Means for Employers and Visa Applicants
Cost shock: For many companies, a sudden six- or seven-figure charge per new hire is a prohibitive barrier.
Uncertainty for startups and midsize firms: Larger corporations might absorb the cost more easily, but smaller firms could find the fee fatal to growth plans.
Complications for planning: Employers will need to evaluate whether their intended hires are eligible for waivers, whether the expense is justified, or whether alternatives—like sponsoring workers in other countries or increasing domestic recruitment—are better paths.
Travel and extensions gray zones: While the administration clarified the fee doesn’t apply to existing H-1B holders or their renewals, legal experts caution that grey areas remain—particularly for those with pending petitions, those who travel outside the U.S., or those seeking changes of employer.
Waiver process ambiguity: Guidance has not fully clarified how “national interest” waivers will be administered, leaving employers and legal teams guessing.
For more information, contact our office at Askew & Associates, P.A. by calling 954-546-2699.
Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns.