White House has provided clarification on the recently introduced $100,000 H-1B visa fee. President Trump has signed a proclamation to significantly reform the foreign work permit program, introducing a $100,000 fee for H-1B visa petitions effective September 21, 2025. Every US employer hiring a foreign worker must pay a $100,000 H-1B fee to the US government.
However, this $100,000 H-1B fee applies only to new visas, excluding renewals and current visa holders. Also, this is a one-time fee applicable only to the petition, not an annual fee.
H-1B visa holders currently outside the U.S. will not face a $100,000 charge for re-entry. Their ability to leave and re-enter the country remains unchanged, unaffected by the recent proclamation.
It will first apply in the upcoming lottery cycle in 2026. On July 18, 2025, USCIS informed that they have received enough petitions to reach the congressionally mandated 65,000 H-1B visa regular cap and the 20,000 H-1B visa U.S. advanced degree exemption, known as the master’s cap, for fiscal year 2026.
H-1B Visa Season FY 2027
$100,000 H-1B fee will be applied for the first time in the H-1B visa season FY 2027.
The FY 2027 H-1B cap process is set to introduce a new wage-based selection system, moving away from the traditional lottery. This change, planned for March 2026, aims to favor high-paying, skilled jobs and may significantly impact the H-1B program, although it remains open to public consultation and legal challenges.
Legal Challenges
However, this is a proclamation, not an executive order, which may have legal implications.
Executive Orders are generally directed to Government officials and external agencies and have the force of law if the topic of the Executive order is “founded on the authority of the President derived from the Constitution or statute.
However, Proclamations typically deal with the activities of private individuals and do not have the force and effect of law, unless the President is given the authority over private individuals by the Constitution or a federal statute.
Already, there are ongoing discussions about the potential legal challenges to the $100,000 H-1B fee and whether it will hold up in court if contested.
Emily Neumann, Immigration Attorney, in an X post says, “If this were to actually come to fruition, it would almost certainly face lawsuits. A fee of that magnitude could be enjoined (blocked) if plaintiffs (employers, visa applicants, industry groups) show the fee is ultra vires (beyond legal authority) or violates administrative law or due process. There would likely be no justification for the increase other than Stephen Miller’s long-standing crusade to dismantle legal immigration pathways.”
New H-1B Petitions
Effective September 21, 2025, all new H-1B visa holders not in the U.S. must ensure their employer has paid the $100,000 fee to enter America.
The Secretary of Homeland Security will restrict decisions on petitions not accompanied by a $100,000 payment for H-1B specialty occupation workers who are currently outside the United States for 12 months following the effective date of this proclamation of September 21, 2025.
This H-1B $100,000 fee is a temporary measure and its restriction will expire 12 months after September 21, 2025, unless extended by the Trump administration.
In the meantime, foreign workers may resort to taking B visas, which are business visas to visit the US. In order to prevent misuse of B visas by foreign beneficiaries of approved H-1B petitions that have an employment start date beginning before October 1, 2026, the Secretary of State has been asked to issue proper guidance.
Exceptions
However, there are a few exceptions to the $100,000 H-1B fee rule. The new $100,000 H-1B fee will not apply to those who are already in the US.
Further, the new $100,000 H-1B fee will not impact all sectors and industries. The new $100,000 H-1B fee will not apply in the hiring of foreign workers to be employed as H-1B specialty occupation workers if they are in the national interest and do not pose a threat to the security or welfare of the United States.
This exemption allows companies considerable opportunity to present their arguments to the Trump administration.
However, the road to exemption may not be simple and easy.
Trump has simultaneously launched a ‘Trump Corporate Gold Card’ on the same day that the $100,000 H-1B fee was introduced.
Trump Corporate Gold Card will be issued to a corporate sponsor for one or more of the sponsor’s employees.
To apply, the corporate sponsor must pay a nonrefundable processing fee per employee. Corporate sponsors may apply for multiple employees at once.
The advantage of the Trump Corporate Gold Card is that corporate sponsors may cease sponsoring one employee and use the gift contribution tied to the prior application as a basis for sponsoring a new employee without a new $2 million gift.
Impact of $100,000 H-1B Fee
The average H-1B salary for foreign workers in the US is $120,000. The new $100,000 H-1B fee is likely to impact the smaller US companies, but the impact could be less for big companies that hire foreign workers by paying $400,000 to $500,000. The big tech companies may still see a hit on their margins unless they choose to opt for other ways of recruiting foreign labour.
Why $100,000 H-1B fee
U.S. Department of Labor calls the imposition of $100,000 H-1B fee ‘Project Firewall’, a plan to ensure high-skilled jobs go to Americans First.
The H-1B nonimmigrant visa program was created to bring temporary workers into the United States to perform additive, high-skilled functions, but it has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor, says Trump’s statement.
Employers are misusing H-1B regulations to suppress wages, negatively affecting American workers and hindering the recruitment and retention of highly skilled temporary workers, particularly in STEM fields, according to Trump.
The abuse of the H-1B visa program has made it even more challenging for college graduates trying to find IT jobs, allowing employers to hire foreign workers at a significant discount to American workers.
Therefore, Trump’s proclamation order aims to impose higher costs on companies seeking to use the H-1B program in order to address the abuse of that program while still permitting companies to hire the best of the best temporary foreign workers.