The President Donald Trump signed a presidential proclamation on the 19th of September 2025 that enacted a radical modification of the H-1B visa program which will take effect on September 21 2025. The executive order will impose an imposing application fee of $100,000 on all new H-1B visa applications submitted by workers from outside within the United States. It also increases the standards of prevailing wages for H-1B employees, with the aim to stop underpayment and prioritize highly skilled, well-paying applicants. This massive overhaul is one of the biggest changes in the skill-based worker programme in a long time and has profound impacts on U.S. employers, immigrants as well as the overall technology sector.
The main elements of the proclamation and the related clarifications are:
- The fee of $100,000 is applicable only to H-1B visa applications filed by foreign nationals living outside of within the U.S., effective September 21, 2025.
- Current H-1B visa holders in or outside of the U.S. are exempt from the fee and continue to travel without restriction within and out of the United States without having to pay the new fee.
- The fee is currently not able to apply to extensions, amendments or petitions to change employers, however additional guidance is anticipated.
- The Department of Labor will raise the wage prevailing for H-1B employees, and increase the requirements for salary that employers have to comply with.
- The policy seeks to safeguard American workers by preventing abuse of the H-1B system and also reducing the use of under-market wages for hiring.
The announcement sparked immediate concern and fear among skilled foreign workers, particularly within the Indian IT sector that accounts for more than 70% of all H-1B beneficiaries. Many foreign workers rushed back to U.S. before the fee rule was implemented in order to avoid being refused from entering the country or facing new fees. Immigration lawyers and employers are seeking clarifications and the courts might be considering legal challenges to the scope of the proclamation and its the enforcement.
The White House and related agencies stressed that the $100,000 fee is a one-time fee and is not applicable annually or to visa holders who are currently in the country however there are still questions regarding how it is going to be carried out and if it will apply to future visa applications. The guideline advises employers to be wary and encourages H-1B employees who are living in U.S. U.S. to postpone international travel until more clear implementation guidelines become available. These new regulations will stay in effect for a year and are subject to change or extension.
Detailed Breakdown of the H-1B Visa Changes
New $100,000 Application Fee
The headline-grabbing part of the proclamation’s new provisions is the imposing of a fee of $100,000 for H-1B visa petitions submitted by beneficiaries located outside of the U.S. This is unprecedented, as prior fees were much smaller ($2,000 to $5,000). The payment must be made with the petition in order to be eligible for visas. Failure to pay could result in a refusal of visas as well as entry clearance.
The fee is intended to serve as a deterrent to companies who rely on foreign labor to fill roles that are filled by American workers, thereby reducing the perception of abuse or overuse that is associated with the H-1B Visa.
Wage Level Adjustments
The proclamation also instructs that the Department of Labor to adjust wages for H-1B visa holders and ensure that they are paid at or higher than market standards across the U.S. This is aimed at reducing the cost of living and safeguard the rights of workers in the U.S.
Impact on Workers and Employers
- Workers from outside of the U.S. who do not have petitions submitted with the fee of $100,000 are not allowed to be admitted to the United States on H-1B status.
- Anyone currently in within the U.S. with valid H-1B visas are allowed to travel and re-enter without having to pay the new fee.
- Employers should consider the significant cost associated with future hires who want to apply for H-1B visas.
- The Indian IT sector, which is heavily dependent on H-1B visas is in the midst of major disruptions, requiring reconsideration of models for staffing as well as U.S. project deployment strategies.
Cautionary Advice to H-1B Holders
Immigration authorities suggest that H-1B holders who are currently living in U.S.A. U.S. avoid international travel until further clarity is provided. Anyone who is outside of the country should attempt to return before the fee enforcement process begins to avoid being stuck or having to face costly hurdles.
Industry and Political Reactions
The decision has been praised by hardline immigration advocates who claim it will benefit American jobs and wards off abuse by the system of visas. However, a lot of tech firms such as giants like Amazon, Google, Apple and Meta are concerned about the difficulties of attracting qualified foreign workers in the new regulations. Legal experts anticipate opposition to the declaration due to its ambiguity as well as fears of negative economic consequences.
Conclusion
The H-1B visa program, which is crucial to U.S. technology and other specialties, is going through an extensive overhaul of the regulations that will take effect September 21st 2025. The new $100k fee for new applicants coming from outside the U.S along with wage hikes and increased scrutiny, mark an important shift that is aimed at safeguarding American workers but could cause confusion and disruption to global mobility of talent as well as business processes. Employers, workers and immigration advocates must be on the lookout for further guidelines as agencies announce details on the rules of implementation and as potential legal developments take place.
This comprehensive coverage includes the most recent H-1B visa news, as on September 21, 2025. This coverage provides an in-depth knowledge of the recently implemented changes and the immediate consequences.