Breaking News: $100,000 H-1B Visa Fee Announced – What Employers and Applicants Need to Know
President Trump has signed a proclamation that introduces a staggering $100,000 fee for all new H-1B petitions, effective September 21, 2025, at 12:01 a.m. EDT. This update has caused widespread concern across employers, employees, and international students planning to pursue U.S. opportunities.
While large corporations may be able to absorb the additional cost, this development poses a substantial challenge for startups, small to mid-sized businesses, nonprofits, and universities. Many fear this could deter global talent, including international graduates on F-1 visas, from seeking careers in the United States—weakening innovation hubs, higher education, and the broader U.S. economy.
At Green Card Link, its immigration attorneys are closely monitoring these changes and can help you explore alternatives and strategies to safeguard your hiring plans or career path.
What is the Freedom of Information Act (FOIA)?
- Applies to all new H-1B petitions filed on or after September 21, 2025.
- Impacts both cap-subject cases (including the FY 2026 lottery) and new H-1B petitions outside the lottery.
- Exemptions for nonprofits and universities remain unclear, creating significant uncertainty.
- Current H-1B visa holders are not affected and can travel freely.
- The $100,000 is a one-time petition fee, not an annual charge.
- No guidance has been issued regarding refunds for denied or withdrawn petitions.
- National interest exceptions may be available, but USCIS has yet to define how these will be applied.
Impact on Employers and Employees
This proclamation could reshape the H-1B visa landscape. While multinational corporations may absorb the cost, smaller companies and nonprofits face barriers that may make sponsorship financially impossible.
The Department of Labor is also expected to raise prevailing wage requirements, further increasing the cost of employing foreign workers. Together, these measures risk creating a “pay-to-play” system where only the wealthiest organizations can bring in skilled international talent.
For international students, the change creates additional challenges. Many pursue U.S. degrees with the expectation of transitioning to H-1B employment. With this steep fee in place, students may choose countries such as Canada or Germany for more affordable opportunities.
Effects on the H-1B Lottery
- The H-1B lottery may see reduced participation, particularly from smaller employers.
- FY 2026 already saw a drop in registrations due to anti-fraud measures (343,981 compared to 758,994 in FY 2024).
- With the new fee, a further decline of up to 50% in filings is possible.
- Larger employers in industries such as AI, biotech, and semiconductor design will likely continue filing, absorbing the cost as part of talent acquisition budgets.
- Smaller employers may drastically reduce filings, reshaping the competitive dynamics of the lottery.
Exploring Alternatives: L-1 and O-1 Visas
As H-1B sponsorship becomes more costly, alternative visa options may gain popularity:
- L-1 Visa (Intracompany Transfer): For executives, managers, or specialized employees transferring from a foreign office. Reliable for multinational companies but limited for startups without a foreign presence.
- O-1 Visa (Individuals of Extraordinary Ability): No lottery, but requires extensive documentation of extraordinary skills or achievements. Best suited for high-achieving professionals in science, technology, business, arts, or athletics.
Although these categories cannot fully replace the H-1B program, they offer viable options for certain employers and employees.
The Bigger Picture: U.S. Competitiveness at Risk
The new proclamation threatens to limit access to the very talent pool that drives U.S. innovation and global competitiveness. Startups and small businesses—key drivers of job creation and technological breakthroughs—may no longer have the resources to participate.
This could ultimately shift talent migration to other countries, undermining the U.S.’s leadership in technology, higher education, and research.
What You Should Do Now
- Employers should review hiring strategies immediately and prepare contingency plans.
- Employees and international students should monitor USCIS announcements and stay informed about alternative visa pathways.
- Both employers and foreign workers should consider case-by-case legal strategies to explore possible exemptions or alternative petitions.
At Green Card Link, its immigration attorneys are prepared to help you navigate this uncertain environment, assess your options, and develop strategies tailored to your situation.
✅ Get Professional Guidance Today
The immigration landscape is changing rapidly. Contact Green Card Link to speak with experienced immigration attorneys who can help you understand the implications of this new rule and protect your immigration goals.