The $100,000 H-1B: An Analysis
On September 19, 2025, the White House issued a proclamation that could reshape how American companies hire foreign professionals. Beginning at 12:01 AM Eastern Daylight Time on Sunday, September 21, 2025, any U.S. employer who wants to bring in an H-1B worker from outside the country must pay a $100,000 fee. If that fee is not paid, the petition will be denied, and the worker will not be allowed to enter the United States. The policy is scheduled to last for one year, though it may be extended.
What the H-1B Program Is and Why This Matters
The H-1B visa is the main way U.S. employers hire foreign workers in specialized fields such as technology, engineering, healthcare, and research. Each year, thousands of foreign graduates, engineers, and scientists enter the lottery and, if selected, are sponsored by U.S. employers.
Until now, the government fees and compliance costs were steep but manageable. They usually added up to thousands of dollars, not hundreds of thousands. By attaching a $100,000 per year payment (for three years) to every worker recruited from abroad, the government has introduced a barrier unlike anything the H-1B program has ever seen.
Who Is Affected and Who Is Not
The proclamation applies only to workers entering the U.S. from abroad.
F-1 graduates already in the U.S.: Students finishing their degrees or working on Optional Practical Training (OPT) can still move into H-1B status without triggering the $100,000 payment, so long as they do not leave and re-enter the country.
Current H-1B workers in the U.S.: Those who extend their visas or change employers without leaving the country are not subject to the new fee.
Workers abroad: This is where the rule hits hardest. If a company wants to bring in someone from overseas, whether a new recruit or even a returning employee who left the U.S., they face the $100,000 per year price tag unless an exception applies.
This distinction gives F-1 graduates inside the U.S. an advantage. Employers may prioritize them over equally qualified candidates abroad.
Plenty of Confusion, a Bit of Clarity
In subsequent clarifications on September 20, 2025, approximately 24 hours after the proclamation was first announced, USCIS, CBP, and the White House Press Secretary, Karoline Leavitt, all underscored the same bottom line: the $100,000 requirement applies only to new H-1B petitions filed on or after September 21, 2025. Current H-1B visa holders, whether inside the United States or traveling abroad, are not impacted by this proclamation, nor are previously approved petitions. In other words, the new fee is a one-time charge on future petitions and does not alter the travel or work authorization rights of existing H-1B workers. Guidance on this proclamation continues to develop, and interpretations are likely to evolve.
The National Interest Exception: A Wild Card
The proclamation gives the Secretary of Homeland Security broad authority to exempt certain workers, companies, or even entire industries from the $100,000 requirement if their admission is judged to be in the “national interest.”
That phrase is not defined in the proclamation, which means the real test will come from how the agencies interpret it. Based on past practice with other immigration programs, here are some candidates who may be eligible for an exception:
- Healthcare workers in shortage areas
- Defense and cybersecurity roles
- Advanced STEM talent in fields like AI and semiconductors
- Critical infrastructure workers
- Researchers and postdoctoral fellows at universities
Employers seeking exceptions will need to prepare detailed evidence showing why a hire is critical to the U.S. economy, security, or welfare. But outcomes could vary depending on agency guidance, political priorities, subjective interpretation of criteria, and persuasiveness of the employer’s documentation.
Does This Really Benefit the U.S. Worker?
The central question is whether raising the cost of hiring foreign workers will actually help American workers. The answer is complicated.
The case for the policy is straightforward: if it becomes more expensive to hire from abroad, employers may be pushed to look harder for U.S. talent first. That could mean better job opportunities for recent American graduates, higher wages in fields like technology, and fewer instances of foreign workers being used to undercut local pay.
The case against the policy is also strong: many employers turn to the H-1B program precisely because they cannot find enough qualified candidates in the U.S. If they are blocked from hiring the workers they need, they may move operations overseas, slow down projects, or outsource work. That could hurt, not help, American workers by reducing the number of jobs available in the U.S. economy.
In short, the policy may create short-term breathing room for some U.S. workers in crowded job markets, but it could also stunt long-term growth and competitiveness. Much depends on how industries adapt and how exceptions are applied.
How This Plays Out in Real Life
Imagine two hires. A university in California wants to sponsor a graduating F-1 student already in the U.S. That case proceeds normally, without the $100,000 fee.
At the same time, the university identifies a postdoctoral researcher in Germany who specializes in semiconductor physics. To bring that candidate in, the school must either pay $100,000 or request a national interest exception, arguing that the research supports U.S. competitiveness and security. Whether that argument succeeds will depend on DHS guidance that does not yet exist.
This uncertainty puts employers in a bind: either pay up, delay hiring, or gamble on whether an exception will be granted.
Legal Challenges to the H-1B Fee
The legality of a $100,000 annual H-1B fee would be heavily contested. Potential arguments include:
Executive overreach: Only Congress can levy taxes; opponents would frame this fee as an unauthorized tax.
Administrative Procedure Act (APA): Critics may argue the measure was issued without proper rulemaking, notice, or comment.
Non-delegation concerns: Courts may question whether the executive can exercise this discretion absent clear statutory authority.
According to Reuters reporting, Aaron Reichlin-Melnick of the American Immigration Council has already questioned the legality, stating: “Congress has only authorized the government to set fees to recover the cost of adjudicating an application.”
Litigation is virtually certain, and courts could quickly stay implementation. Employers should prepare contingency plans for both enforcement and injunction scenarios.
What Employers and Workers Should Do Now
Many employers have already notified its employees to rush back to the U.S. on Saturday, September 20th, before the proclamation takes effect just past midnight.
Employers should also immediately review their hiring pipelines and separate cases into three groups: those already in the U.S. (such as F-1 graduates), those abroad with a strong national interest argument, and those abroad without one. For the second group, begin documenting why the hire matters for public health, national security, or innovation.
Foreign workers inside the U.S. should recognize their relative advantage. For now, employers are far more likely to pursue H-1B sponsorship for them than for equally qualified candidates abroad. Workers abroad, by contrast, may find their opportunities sharply curtailed unless their role clearly ties to the national interest.
Looking Ahead
This proclamation is one of the most dramatic shifts in employment-based immigration in decades. Supporters see it as a way to protect American workers and force companies to prioritize higher wages and domestic talent. Critics see it as a blunt instrument that disadvantages startups, risks brain drain, and drives companies to move jobs overseas.
For F-1 graduates and current H-1B workers already here, the door remains open, and is perhaps even wider now. For candidates abroad, entry may hinge on a $100,000 fee yearly fee or on convincing the government that their role is essential to the nation.
The broader question, whether this really benefits the American workforce, remains unanswered. It may protect some jobs in the short run, but if employers respond by offshoring work or slowing growth, U.S. workers could feel the consequences too.
For now, one thing is certain: hiring foreign professionals has become more expensive, more complex, and more dependent on government discretion than ever before.
Frequently Asked Questions About the $100,000 H-1B Visa Fee
Does the $100,000 H-1B fee apply to renewals?
The White House has described the fee as annual, but whether it attaches at renewal or extension will depend on DHS guidance. Update (09/20/2025): No. The $100,000 fee applies only to new H-1B petitions filed on or after September 21, 2025; renewals and extensions for existing visa holders are not subject to this fee. (USCIS memo; Press Secretary statement)
Are F-1 students in the U.S. required to pay the fee when changing to H-1B?
Current reporting suggests in-country changes of status may not trigger the fee, but this is not yet confirmed. Update (09/20/2025): Yes, the fee applies to new H-1B petitions regardless of whether they are filed from within the U.S. or through consular processing abroad. (USCIS memo)
Does the proclamation affect current H-1B workers already in the U.S.?
Extensions and employer changes may be exempt, but final rules are pending. Update (09/20/2025): No. Current H-1B workers, including those with valid visas and approved petitions, are not affected by the proclamation and do not owe the fee. (USCIS memo; Press Secretary statement)
What is the “national interest” exception?
It allows DHS to exempt workers whose admission is deemed vital to U.S. security, health, or competitiveness. Specific criteria are not yet defined.
How can employers improve their chances of obtaining an exception?
By preparing detailed evidence of economic or strategic importance, though ultimate outcomes will depend on DHS decisions.
Could the $100,000 fee face legal challenges?
Yes. Courts are likely to see challenges based on executive overreach and APA violations.
Will the $100,000 fee be tax-deductible for employers?
Most visa-related expenses are treated as business costs, so this fee would likely be deductible. Still, companies should confirm with their tax advisors.
How would the government collect the fee? Is it a lump sum payment?
The collection mechanism remains unclear. The most likely option is payment at the time of petition filing, but DHS must provide guidance.
How does this fee affect workers who travel abroad for a short period, then return to the U.S.?
Unless agency guidance provides an exception, re-entry could trigger the $100,000 fee. This is a key point of uncertainty awaiting clarification. Update (09/20/2025): It does not. H-1B visa holders can continue to travel and reenter the U.S. as they normally would, without triggering the $100,000 fee. (CBP memo; Press Secretary statement)
Is there any special consideration for small businesses or nonprofits?
No such exceptions have been announced. Past fee structures did include small-employer variants, but so far this proposal applies equally to all employers.
When does the $100,000 fee take effect?
Implementation begins at 12:01 AM on Sunday, September 21, 2025, but legal challenges may delay enforcement. Monitor USCIS and the Federal Register for updates.
Do large tech companies support this fee?
According to Commerce Secretary Howard Lutnick, “all the big companies are on board.” Yet Reuters reported that many declined to comment publicly, suggesting muted or mixed support.
What about other visa categories—are they affected?
The announcement specifically targets H-1B visas. A separate “$1 million gold card” for permanent residency was also floated, but other temporary categories (L-1, O-1, TN) appear unaffected.
Can companies pass the cost to employees?
Under current rules, H-1B visa fees must be paid by the employer, not the worker. The $100,000 fee would almost certainly follow this principle.
How does this compare to other countries’ visa fees?
Globally, this fee would be unprecedented. Canada’s work permit fees are under $500, while the UK’s skilled worker visa runs about $3,000–$4,000.
Will this affect companies’ stock prices?
Yes. Early market reaction showed IT services firms heavily reliant on H-1Bs (e.g., Cognizant, Infosys, Wipro) dropping 2–5% after the announcement.
What happens to pending H-1B applications?
The treatment of pending applications is unclear. Employers should consult counsel to determine if new fees will retroactively apply. Update (09/20/2025): The fee does not apply to petitions filed before 12:01 AM ET on September 21, 2025; it applies only prospectively to new petitions filed after that time. (USCIS memo)
Are startups and small companies exempt from the fee?
No exceptions have been announced. The fee would hit startups disproportionately compared to Fortune 500 companies.
How quickly can legal challenges stop this policy?
Immigration lawyers predict immediate lawsuits seeking injunctions. Courts’ willingness to block implementation will depend on legal arguments and venue.
Why is this happening now?
The administration points to statistics showing the number of foreign STEM workers more than doubled from 2000 to 2019, while overall STEM job growth was 44.5%. The fee is framed as protecting American workers from wage suppression.
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