President Trump’s Proclamation Imposing $100,000 Annual Fee on H-1B Visas: Key Implications for Employers and Employees

By: Cristina Perez, Esq. and Daniel E. Kelly, Esq.

On September 19, 2025, President Trump issued a proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers” (“Proclamation”) restricting the entry of anyone seeking to enter the U.S. in H-1B status without payment of a new $100,000.00 fee. The Proclamation became effective at 12:01 a.m. EDT Sunday, September 21, 2025, and is set to expire after one year.

This unprecedented measure is arguably aimed at addressing perceived abuses in the H-1B program and protecting and prioritizing American workers by introducing a significant new cost to U.S. employers seeking to sponsor H-1B workers from abroad. While the full scope of the Proclamation is still under review, initial details suggest broad impacts on U.S. employers in several industries, particularly those reliant on international talent.

Due to the Proclamation’s substantial ambiguity, the federal government and the White House have issued memoranda clarifying, among other points, that the Proclamation applies only to petitions filed after 12:01 am EDT on September 21,2025. Specifically, they clarify:

“[t]his Proclamation only applies to petitions that have not yet been filed.”

While we wait for details regarding implementation and expect further clarifications, this alert summarizes the key provisions, affected parties, immediate implications, and recommended next steps. Our team is actively tracking developments closely, including further clarifications from U.S. Citizenship and Immigration Services (USCIS), implementation guidance and/or potential legal challenges.

Key Provisions of the Proclamation

  • Effective Date: September 21, 2025, at 12:01 a.m. EDT.
  • Duration: 12 months (but subject to extension).
  • Fee Requirement:
    • A one-time $100,000 fee is required for each new H-1B visa petition submitted after its effective date, for workers who are currently outside the U.S.
    • Applies to future petitions, including those that will be filed under the upcoming H-1B lottery and any other H-1B petitions submitted after the effective date.
    • No payment instructions have been issued.

Impact on H-1B Categories

New H-1B Petitions

  • The fee applies to all new H-1B applications filed on or after September 21, 2025.
  • Employers must pay the $100,000 per visa holder, in addition to existing USCIS filing fees..

Current H-1B Holders

  • The Proclamation does not appear to apply to:
    • H-1B workers already in the U.S. with approved H-1B petitions as of September 19, 2025.
    • Petitions filed before the effective date.
    • Individuals with a valid H-1B visa.
  • Exemptions appear to include:
    • Extensions of stay inside the U.S., change of employer, change of status, amended petitions (if the beneficiary remains in lawful H-1B status).
  • Traveling:
    • Existing H-1B visa holders should not have their travel to and from U.S. affected.
    • Re-entry after international travel could trigger the fee if tied to “new petition.”
    • Status of visa-exempt professionals (i.e., Canadians) remain unclear.

Implementation

  • By March 2026, the Secretary of State, the Attorney General, the Secretary of Labor, and the Secretary of Homeland Secretary shall jointly submit a recommendation to the President as to whether renewing or extending the restriction on reentry is in the best interest of the U.S.
  • The Secretary of State will issue guidance to prevent the misuse of B visas by individuals attempting to bypass the new fee.
  • The Secretary of Labor shall initiate rulemaking to revise the prevailing wage levels and to prioritize the admission of high-skilled and high-paid nonimmigrants.

Exceptions to the $100,000 Fee

  • DHS may grant exceptions for an individual, a company, or an industry, if:
    • It serves the national interest of the U.S. and
    • Poses no threat to U.S. security or welfare.
  • No guidance has yet been provided to apply for a national interest exception.
  • Cap-exempt H-1B workers (i.e., universities, non-profits) outside of the U.S. are not explicitly addressed in the Proclamation.

Industries at Risk

  • Arguably, Tech and IT consulting firms face the heaviest burden due to their reliance on H-1B labor.
  • Startups, healthcare, education and research institutions may find the $100,000 fee prohibitive, exacerbating talent shortages.

Recommended Actions

For H-1B Professionals with Valid Petition and Visa

  • Return to the U.S. as soon as possible if currently abroad.
  • Avoid international travel until implementation is further clarified.
  • If abroad with:
    • An approved petition and a valid H-1B visa: enter the U.S. as soon as possible.
    • An approved petition but no visa: it is recommended to schedule a consular appointment for H-1B visa issuance at a U.S. consulate as soon as possible.

For Employers

  • Audit Your H-1B Portfolio:
    • Identify pending and planned petitions subject to the new fee.
    • File eligible cases before any anticipated USCIS enforcement guidance tightens.
  • Explore Alternatives:
    • Consider accelerating green card processes (e.g., EB-2/EB-3).
    • Evaluate other non-immigrant visa options, if applicable.
  • Plan Financially:
    • Consider Future H-1B cost projections and factor the $100,000 fee into 2026 hiring budgets.
    • Anticipate additional legal and administrative fees.
  • Stay Updated:
    • Monitor USCIS, DOL, and DHS
    • Contact our office with questions.

Cristina Perez is a Partner in Leech Tishman’s Immigration and Labor & Employment Practice Groups and is based out of the firm’s Los Angeles office. She can be reached at cperez@leechtishman.com.

Daniel E. Kelly is an attorney in Leech Tishman’s Immigration Group, Litigation Practice Group, and White Collar Defense Group. He is based in the firm’s New York office. He can be reached at dkelly@leechtishman.com.