Why the Fee Was Introduced
Trump justified the unprecedented fee on national security and economic grounds. He argued that the H-1B program—established in 1990 to allow U.S. employers to fill specialized roles—has been misused to replace American workers with cheaper foreign labor.
The administration claims IT firms have manipulated the visa system.
Commerce Secretary Howard Lutnick said companies should “train one of the recent graduates from one of the great universities across our land.”
The intent: discourage overuse of the program and push employers to hire and train U.S. citizens.
How the Fee Will Work and Who Is Affected
Employers must remit $100,000 with each petition or renewal.
DHS will deny petitions without proof of payment, and the State Department will refuse entry to foreign workers.
Applies to petitions filed or pending on/after September 21, 2025.
Exemptions may be granted if deemed in the national interest.
Rule is effective for 12 months, with possible extensions.
Impact on Tech and STEM Industries
The U.S. tech sector—already dependent on foreign workers—faces the sharpest impact.
Over 71% of H-1B visas go to Indian citizens, with another 12% to Chinese nationals.
Amazon, Microsoft, and Meta each received more than 5,000 H-1B approvals in the first half of 2025.
Companies issued urgent travel advisories for employees abroad to return before the deadline.
Industry voices raised concerns:
Menlo Ventures’ Deedy Das warned the policy would deter talent and harm innovation.
Analysts predict start-ups may offshore work to avoid the steep cost.
NDTV noted the move could cripple the U.S. tech sector’s competitiveness.
Reactions and Criticism
Immigration advocates and labor experts widely condemned the proclamation.
Boundless Immigration called the H-1B a “luxury work permit” accessible only to wealthy corporations.
Fragomen Law Firm highlighted that the rule may face legal challenges, since Congress authorized only cost-recovery fees—not punitive charges.
Labor groups warned that outsourcing and automation may accelerate.
Other Immigration Changes: Gold Card and Wage Reforms
Alongside the H-1B fee, Trump announced new measures:
Gold Card Residency: $1M fee for individuals, $2M for companies.
Prevailing Wage Reforms: higher salary requirements for H-1B workers.
DHS instructed to prioritize highly paid, highly skilled professionals.
What H-1B Workers and Employers Should Do Now
Return to the U.S. before Sept. 21 to avoid being stranded abroad.
Employers must budget for higher immigration costs.
Consider alternatives like offshoring, automation, or workforce restructuring.
Looking Ahead
The $100,000 H-1B fee is one of the most sweeping immigration reforms in decades. Supporters argue it will curb misuse, while opponents warn it risks driving away global talent and hurting U.S. competitiveness. With legal battles looming, the future of skilled immigration remains highly uncertain
