Trump’s $100,000 H-1B Visa Fee: What It Means for Employers, Workers, and Immigration Policy
President Trump’s September 2025 executive order introduced a $100,000 annual fee for every new H-1B visa application. Effective September 21, 2025, this change reshapes the H-1B visa program and signals a sharp shift in U.S. immigration law. Importantly, the fee applies only to new H-1B petitions filed for workers outside the United States, not to existing visa holders or renewal applications. Employers, particularly in the tech industry, now face drastically higher sponsorship costs. The order also directs agencies to raise prevailing wages, authorizes “national interest” exemptions, and introduces premium pathways such as $1–5 million ‘gold card’ and ‘platinum card’ visas. Supporters argue this will force companies to hire U.S. workers first; critics warn it will drive talent abroad, disrupt innovation, and invite lawsuits challenging the president’s authority. With India accounting for more than 70% of H-1B approvals, Indian tech firms and professionals will be disproportionately affected. Whether temporary or permanent, the policy is the most significant change to the H-1B system in decades.
Understanding the $100,000 H-1B Fee
The new fee applies only to new H-1B applications, not renewals or extensions. Employers—not employees—must pay, as U.S. law prohibits passing mandatory H-1B costs to workers.
Federal officials have clarified that workers abroad should not rush to the U.S. to avoid the fee. Only petitions filed after September 21, 2025, are covered.
Additional Policy Changes
The proclamation includes more than just the fee:
Prevailing Wage Increases: The Department of Labor must raise wage requirements, reducing incentives for employers to hire foreign workers at below-market salaries.
National Interest Exemptions: DHS may grant case-by-case waivers if a hire advances U.S. economic or security goals. These exemptions are expected to be rare.
Review Window: The policy is effective for 12 months, with the possibility of extension or modification by federal agencies.
Employer Impact: Tech Giants and Beyond
Major corporations like Amazon, Apple, Microsoft, and Google are likely to remain in the H-1B space but at dramatically higher costs. Sponsoring thousands of workers could now add billions to annual budgets.
For smaller IT firms and outsourcing companies, the fee could be prohibitive. These businesses, long reliant on H-1B workers to meet client demands, may no longer find the program viable.
International Consequences
Indian nationals account for about 71% of H-1B approvals. Indian IT professionals and firms will bear the brunt of the policy. Industry leaders in India have warned of reduced access to the U.S. market, while U.S.-India business ties may face strain.
Other countries that send H-1B workers—including China, the Philippines, and Canada—will also see restricted opportunities.
Premium Visa Alternatives
Alongside the fee, the administration unveiled new high-cost visas:
Gold Card Visa: $1 million for individuals or $2 million for companies; expedited processing and possible path to citizenship.
Platinum Card Visa: $5 million; additional tax benefits and extended stays.
These visas are aimed at high net-worth individuals and corporations, not the majority of skilled workers.
Legal and Policy Challenges
Immigration attorneys have already signaled potential lawsuits. Critics argue the $100,000 fee exceeds executive authority and bypasses Congress, which traditionally sets immigration fees and caps. Others highlight potential equal protection claims, given the disproportionate impact on Indian workers.
Economically, the move reflects a protectionist turn in U.S. immigration law. Proponents claim it will safeguard U.S. jobs; critics fear it will undermine competitiveness and innovation.
What Employers Should Do Now
Employers navigating the new H-1B visa rules should:
Consult immigration counsel to evaluate whether sponsorship remains feasible under the new costs.
Reassess hiring strategies, particularly for roles historically filled with H-1B workers.
Explore national interest exemptions, especially for positions tied to innovation, national security, or public welfare.
Monitor litigation and policy updates, as lawsuits could delay or strike down parts of the order.
Frequently Asked Questions (FAQ)
Does the $100,000 fee apply to renewals or extensions?
No. It applies only to new H-1B applications filed after September 21, 2025.
Who pays the new fee—the employer or the employee?
Employers must pay. Federal law prohibits shifting these mandatory fees to employees.
What is the “national interest” exemption?
A case-by-case waiver DHS may grant for critical hires that serve U.S. economic or security interests.
How does this affect smaller firms?
For staffing and outsourcing companies, the fee may make H-1B sponsorship financially impossible.
Could this policy be challenged in court?
Yes. Immigration lawyers are preparing challenges, arguing the fee exceeds presidential authority.
Final Takeaway
The $100,000 annual H-1B fee is more than a cost increase—it’s a structural shift in U.S. immigration law. Employers must carefully weigh sponsorship decisions against the steep price tag. Foreign professionals, particularly in India, face sharply reduced opportunities. With lawsuits looming and federal agencies set to review the rule within 12 months, the future of the H-1B program remains uncertain.