The New $100,000 H-1B Fee: What You Need to Know

What’s the change

On September 19, 2025, President Trump signed a proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers” that imposes a $100,000 supplemental fee tied to H-1B visa petitions.

The fee is meant to be paid by the employer on petitions submitted for foreign nationals who are outside the U.S..

Alongside the fee, the directive also orders changes like raising prevailing wage levels by the Department of Labor.

When does it go into effect

The proclamation goes into effect at 12:01 a.m. Eastern Daylight Time (EDT) on September 21, 2025 and is set to expire on September 21, 2026, unless extended.

Who is exempt / not (or likely not) affected

Here are the major categories of people or situations that have been clarified or seem to be exempt:

Current H-1B visa holders (inside or outside U.S.) with valid visas – Exempt. The fee does not apply to people who already hold a valid H-1B visa.

Employers/petitions filed before the effective date (before 12:01 a.m. EDT on Sept 21, 2025) – Exempt. Petitions filed prior to that time are not subject to the new fee

Renewal of an existing H-1B petition / extension for someone already inside U.S. Likely exempt, per White House clarification: the fee is for new applicants, not renewals.

H-1B beneficiaries already approved and having valid visas. Exempt. They do not need to pay the fee to re-enter.

People outside U.S. who have not had a valid H-1B petition filed before September 21, 2025. Affected. For those people, new petitions filed before Sept 21, 202 will require the supplemental fee.

H-1B cap-exempt employers/national interest roles – Not clearly exempt under all language; there is some suggestion that “national interest” may be used as an exemption in certain cases. But exact definition, criteria, and whether it applies broadly are still unclear

Who this affects

Employers who sponsor new H-1B petitions for workers outside the U.S. once the law is in effect and whose petitions are filed after the deadline. The supplemental $100,000 payment must be included, or those petitions may be denied.

Individuals outside the U.S. planning to enter on a new H-1B who don’t yet have valid petitions filed. These people may be blocked unless the fee is paid.

Companies in industries that rely heavily on foreign skilled labor, especially tech firms with many H-1Bs, who will see a much higher cost for new hires via H-1B from abroad.

What’s still uncertain / contentious

Whether the fee is one-time (just at entry / new petition) or recurring (annually) for people who stay on H-1B for multiple years. The White House has clarified that it’s a one-time fee per petition, not annual.

How “outside the U.S.” is defined exactly: what counts as “outside” — for someone with a valid H-1B visa but abroad for stamping or travel, etc.

Clarifying how change‐of‐employer petitions, amendments, or extensions inside the U.S. are treated if someone later needs to travel abroad (visa stamping). The language so far seems to suggest those inside the U.S. with valid status and petitions filed before the effective date are okay, but travel abroad ­may trigger complications.

What “national interest” exemptions will look like in practice (industries, types of roles, criteria).

Legal challenges: as with many executive actions that change visas or impose new fees, there will likely be court challenges. Whether this proclamation and its implementation survive scrutiny is open.

Implications & Why it matters

Cost increase: For employers bringing in skilled foreign workers from abroad via H-1B, this represents a major additional expense.

Talent sourcing shift: This may disincentivize hiring from abroad; companies may prefer people already in country or look to alternative visa paths.

Travel uncertainty: H-1B holders abroad may try to re-enter before the deadline or avoid travel because of risk.

Effects on visa lottery (FY 2026 and beyond): Since this applies to new petitions, it’s expected to significantly affect the H-1B lottery cycle starting after September 21.

Conclusion

The bottom line is: as of Sept 21, 2025, a new $100,000 fee will be required on new H-1B petitions for persons outside the U.S.; however, renewals, current visa holders, and petitions filed before that date are not subject to the fee. There remains a lot of ambiguity in how “outside the U.S.,” “new applicant,” and “petition filed date” will be interpreted in practice. Entities affected should pay close attention, possibly seek legal counsel, and plan around these changes (especially regarding travel, filings, and hiring foreign nationals).