WASHINGTON D.C. – A drastic measure signed by President Donald Trump on September 19, 2025, has fundamentally reshaped the U.S. H-1B visa program, which serves as a vital pathway for tech companies to hire highly skilled foreign workers. The new policy, effective from September 21, 2025, requires companies to pay a one-time fee of $100,000 for every new H-1B visa petition.
This monumental fee increase—soaring from a previous range of a few thousand dollars—immediately sent a wave of confusion and alarm across the technology industry and among foreign professionals, particularly those from India, the program’s largest user base.
Clarification Eases Initial Panic
The proclamation, titled “Restriction on Entry of Certain Nonimmigrant Workers,” initially caused widespread panic because its language suggested that existing H-1B visa holders outside the U.S. might be barred from re-entry without paying the new fee.
However, within 24 hours of the announcement, the Department of Homeland Security (DHS) and U.S. Citizenship and Immigration Services (USCIS) issued critical clarifications:
- New Petitions Only: The $100,000 charge is a one-time fee that applies strictly to new H-1B petitions filed on or after September 21, 2025.
- Current Holders Unaffected: The rule does not apply to existing H-1B visa holders, renewals, or petitions filed before the deadline. Valid visa holders can travel in and out of the U.S. without being impacted.
Policy Aim and Industry Impact
The Trump administration justifies the move as an essential step to address alleged abuses of the H-1B program, which critics claim allows companies to undercut American wages. The new structure, they argue, will ensure that only the “highest-skilled, highest-paid workers” gain access.
In addition to the escalating fee, the DHS also announced plans to reform the H-1B lottery process itself, shifting to a “weighted” system that would prioritize applicants with the highest salary offers.
Despite the administration’s stated goals, economists and industry leaders warn that the astronomical cost could have severe negative consequences:
- Hardest Hit are Startups: The $100,000 fee is expected to be a prohibitive burden for startups and mid-sized companies, forcing them to abandon plans to recruit global talent.
- Risk of ‘Brain Drain’: Experts worry the policy will encourage highly educated workers in STEM (Science, Technology, Engineering, and Mathematics) fields to seek opportunities in competitor nations, slowing innovation and eroding U.S. technological competitiveness.
The measure, seen as a key step toward fulfilling President Trump’s campaign promise to prioritize American workers, is expected to face swift legal challenges.
