Trump Administration Implements $100,000 Fee on H-1B Visas: A Seismic Shift in Immigration Policy
The proclamation argues that the H-1B visa program, originally intended to fill gaps with highly skilled foreign workers, has been widely abused by companies—especially in IT—to replace American workers with cheaper labor. This practice has suppressed wages, worsened unemployment among U.S. tech graduates, and forced laid-off Americans to train their replacements. The misuse of H-1B visas is framed as both an economic and national security threat.
President Donald Trump signed a sweeping proclamation on September 19, 2025, that fundamentally restructures the H-1B visa program by imposing a staggering $100,000 fee on applications. This dramatic policy shift represents one of the most significant changes to skilled worker immigration in decades, with far-reaching implications for American workers, technology companies, and the broader economy.
The Policy at a Glance
The proclamation requires a $100,000 fee for H-1B visa applications and asserts that abuse of the H-1B pathway has displaced US workers. The restriction takes effect at 12:01 a.m. Eastern Daylight Time on September 21, 2025, and is set to expire after 12 months unless extended.
Under the new rules, H-1B petitions for workers currently outside the United States must be accompanied by the substantial fee, with limited exceptions available at the discretion of the Department of Homeland Security for cases deemed to be in the national interest.
The Problem: Systematic Abuse of H-1B Visas
The Trump administration's proclamation paints a stark picture of how the H-1B program has strayed from its original purpose. Originally designed to bring temporary, high-skilled workers to supplement the American workforce, the program has been "deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor."
The Numbers Tell the Story
The data presented in the proclamation reveals the scope of this transformation:
Foreign STEM worker population more than doubled from 1.2 million in 2000 to almost 2.5 million in 2019
Computer and math occupations saw foreign worker representation grow from 17.7% to 26.1% during the same period
IT workers now dominate H-1B applications, growing from 32% in FY 2003 to over 65% in recent years
Significant wage disparities exist, with one study showing H-1B workers earning 36% less than traditional full-time workers
Real-World Impact on American Workers
Perhaps most troubling are the specific examples of major technology companies simultaneously laying off American workers while hiring thousands of H-1B workers:
One software company approved for over 5,000 H-1B workers in FY 2025 while announcing layoffs totaling more than 15,000 employees
An IT firm approved for nearly 1,700 H-1B workers while laying off 2,400 American workers in Oregon
A major company reduced its American workforce by approximately 27,000 since 2022 while being approved for over 25,000 H-1B workers
The human cost extends beyond mere statistics. American IT workers have reportedly been forced to train their foreign replacements and sign nondisclosure agreements as a condition of receiving severance packages—a practice that underscores how far the program has drifted from its intended purpose.
Economic and National Security Concerns
Labor Market Displacement
The proclamation cites alarming unemployment trends among recent computer science graduates. Despite the narrative of a tech worker shortage, Federal Reserve Bank of New York data shows computer science and computer engineering majors face unemployment rates of 6.1% and 7.5% respectively—more than double the rates of biology and art history graduates.
Unemployment in computer occupations has jumped from 1.98% in 2019 to 3.02% in 2025, coinciding with the massive influx of H-1B workers.
Wage Suppression Effects
A 2017 study revealed the broader economic impact: without the importation of foreign workers into computer science fields, American computer scientists would have seen wages 2.6% to 5.1% higher and employment 6.1% to 10.8% higher by 2001. This wage suppression effect ripples throughout the entire industry, making STEM careers less attractive to American students and workers.
National Security Implications
The administration argues that H-1B abuse poses genuine national security risks in two key ways:
Direct security threats: Law enforcement agencies have investigated H-1B-reliant outsourcing companies for visa fraud, money laundering, and other criminal activities
Strategic workforce concerns: By discouraging Americans from pursuing STEM careers, the program undermines long-term American technological leadership
Industry Response and Market Impact
The technology sector, which relies heavily on skilled workers from India and China, is expected to face a significant blow from these changes. The $100,000 fee represents a substantial cost increase that will likely force companies to reassess their hiring strategies and potentially prioritize domestic talent.
For context, current H-1B application fees range from approximately $1,500 to $5,000 depending on company size and other factors. The new $100,000 fee represents a 20-fold to 67-fold increase—a cost barrier that few companies will absorb lightly.
What This Means Going Forward
Immediate Effects
Companies must now weigh the substantial financial cost against the perceived value of each H-1B hire. This is likely to:
Dramatically reduce overall H-1B applications
Force employers to offer more competitive wages to attract domestic talent
Encourage investment in American worker training and development
Lead to more strategic, selective use of the H-1B program for truly exceptional talent
Policy Implementation
The proclamation includes several implementation mechanisms:
Coordinated enforcement between the Departments of Homeland Security and State
Documentation requirements for employers to prove fee payment
Future review process within 30 days of the next H-1B lottery
Additional rulemaking to revise prevailing wage levels and prioritize high-skilled, high-paid workers
Exceptions and Flexibility
The policy includes provisions for the Secretary of Homeland Security to exempt individuals, companies, or entire industries if their employment is deemed in the national interest and poses no security threat. This suggests the administration recognizes the need for some flexibility while maintaining the overall restrictive framework.
The Broader Immigration Context
This H-1B reform represents part of the Trump administration's broader approach to immigration policy, emphasizing the protection of American workers and wages. The policy reflects a fundamental philosophical shift from viewing immigration primarily through the lens of economic growth to prioritizing the interests of domestic workers.
The administration's argument is straightforward: if companies truly need the world's best talent, they should be willing to pay premium prices for it. The $100,000 fee serves as both a revenue generator and a market signal that foreign workers should supplement, not replace, American talent.
Looking Ahead
The 12-month timeline for this restriction provides a natural checkpoint for evaluating its effectiveness. Key metrics to watch include:
Changes in H-1B application volumes
Wage trends in affected industries
American worker employment rates in STEM fields
Company responses and hiring pattern adjustments
Whether this policy achieves its stated goals of protecting American workers while maintaining access to top global talent will depend largely on how companies adapt their hiring strategies and whether domestic workforce development keeps pace with industry needs.
The H-1B fee increase represents more than just an immigration policy change—it's a fundamental recalibration of how America approaches skilled worker immigration in the 21st century. As companies adjust to this new reality, the true test will be whether this approach successfully balances protecting American workers with maintaining the country's competitive edge in the global talent market.
This policy takes effect on September 21, 2025, and will remain in place for 12 months unless extended following a comprehensive review by relevant federal agencies.
Frequently Asked Questions
What is the H-1B visa program?
The H-1B visa program allows U.S. employers to temporarily employ foreign workers in specialty occupations that require specialized knowledge and a bachelor's degree or higher. Common fields include technology, engineering, healthcare, and finance.
When does the $100,000 fee requirement take effect?
The new fee requirement takes effect at 12:01 a.m. Eastern Daylight Time on September 21, 2025, and will remain in place for 12 months unless extended.
Who must pay the $100,000 fee?
Employers must pay the fee when filing H-1B petitions for workers who are currently outside the United States. The fee applies to each individual petition filed.
Are there any exceptions to the fee requirement?
Yes, the Secretary of Homeland Security can exempt individuals, companies, or entire industries if their employment is deemed in the national interest and poses no security threat to the United States.
Does this affect H-1B workers already in the United States?
No, the restriction applies only to new H-1B applicants who are currently outside the United States. Workers already in the U.S. on H-1B visas are not affected by this proclamation.
How does this compare to current H-1B fees?
Current H-1B application fees range from approximately $1,500 to $5,000 depending on company size and other factors. The new $100,000 fee represents a 20-fold to 67-fold increase.
Can the fee be waived or reduced?
The proclamation does not provide for fee waivers or reductions, except for the national interest exceptions granted at the Secretary of Homeland Security's discretion.
What happens to H-1B applications already in process?
The restriction applies only to aliens who enter or attempt to enter the United States after the effective date. Applications already approved before September 21, 2025, should not be affected.
Will this affect the annual H-1B lottery?
The proclamation doesn't eliminate the lottery system, but it's expected to dramatically reduce the number of applications due to the high fee, potentially making the lottery less competitive.
How long will this policy remain in effect?
The restriction is set to expire 12 months after the effective date (September 21, 2026) unless extended. Federal agencies will conduct a review within 30 days of the next H-1B lottery to make recommendations about extension.
What about other types of visas (L-1, O-1, etc.)?
This proclamation specifically targets H-1B visas only. Other visa categories are not affected by this particular policy change.
Can companies pass this cost to the workers?
Under current immigration law, employers generally cannot require employees to pay visa-related fees. The $100,000 fee must be paid by the sponsoring employer.
What documentation do employers need to provide?
Employers must obtain and retain documentation showing that the $100,000 payment has been made before filing the H-1B petition. The Department of State will verify receipt of payment during the visa process.
Will this affect visa renewals and extensions?
The proclamation focuses on new entries to the United States. H-1B renewals and extensions for workers already in the U.S. appear to be outside the scope of this restriction.
What is the stated goal of this policy?
According to the proclamation, the goal is to address systematic abuse of the H-1B program, protect American workers from wage suppression and job displacement, and ensure the program serves its original purpose of bringing truly high-skilled workers when Americans are unavailable.
Could this policy be challenged in court?
Like many immigration policies, this proclamation could face legal challenges. However, presidents have broad authority under immigration law to restrict entry of foreign nationals, particularly under sections 212(f) and 215(a) of the Immigration and Nationality Act.
How might this affect the tech industry specifically?
The tech industry, which relies heavily on H-1B workers (over 65% of recent H-1B approvals), will likely face the most significant impact. Companies may need to invest more in domestic talent development, offer higher wages to attract American workers, or absorb the substantial fee cost for critical hires.
What happens after the 12-month period?
Within 30 days of the next H-1B lottery, federal agencies will jointly recommend to the President whether to extend, modify, or end the restriction based on its effectiveness and impact on American interests.