The government enacted a new H-1B application fee in a bid to encourage the hiring of American workers effective September 21, 2025. Employers petitioning for H-1B specialty occupation workers who reside outside the United States must pay an additional $100,000 fee per petition unless given an exemption by the Department of Homeland Security.
The government cites widespread abuse of the H-1B program by outsourcing firms and technology companies, alleging that systemic misuse has displaced American workers, depressed wages, and created national security risks. The new application fee will impose higher costs on companies seeking to use H-1B workers.
The new restriction applies for 12 months and might be extended. Employers must document proof of payment and submit it to both the Department of State (DOS) and the DHS. Both departments must approve the receipt before granting an H-1B visa.
H-1B workers already in the United States won’t be affected by the policy change, but it places significant new financial burdens on employers seeking foreign workers from abroad. The proclamation also directs the Department of Labor (DOL) and the DHS to initiate rule-makings to revise prevailing wage levels and prioritize higher-paid, higher-skilled H-1B petitions.
The move has sparked immediate concern among U.S. employers and foreign professionals, as it could significantly disrupt global hiring practices, complicate international transfers, and increase costs for multinational firms. This isn’t the first time the government has changed the rules around the H-1B. In August 2025, the Office of Information and Regulatory Affairs (OIRA) approved replacing the current H-1B lottery with a wage-based selection system.
Client FAQ on H-1B Proclamation
- What is the effective date of this new rule?
The proclamation takes effect on September 21, 2025, at 12:01 a.m. EDT and will last for 12 months, unless extended. - Does this affect H-1B employees already in the United States?
No. The restriction applies only to individuals seeking to enter or re-enter the United States after the effective date. Current H-1B workers lawfully present in the U.S. are not subject to the $100,000 fee for extensions, amendments, or transfers filed while they remain in the country. - Who must pay the $100,000 fee, and to whom is it paid?
The employer/petitioner must make the payment to the U.S. Government. Employers must retain proof of payment, and the Department of State will verify it before issuing a visa. - Will the $100,000 fee apply to H-1B visa stamping?
Yes. If the worker is abroad and requires visa stamping on an approved H-1B petition, the employer will need to pay the additional fee for the visa to be issued. - Are H-1B transfers, amendments, or extensions affected?
If the worker remains inside the U.S., these filings should not require the $100,000 payment. However, if the worker travels abroad and seeks re-entry, the employer would need to pay the fee. - How does this impact cap-exempt petitions (universities, nonprofits, research institutions)?
The proclamation does not specifically exempt cap-exempt employers. Unless the Secretary of Homeland Security grants an exemption under the “national interest” clause. If not, these employers will also be subject to the $100,000 requirement for workers entering the U.S. from abroad. - What about workers who previously held H-1B status and still have unused time left?
If they are abroad and the employer wishes to bring them back, the $100,000 fee will apply because it constitutes a new entry into the United States.
- What should employers and employees do now?
- Review any upcoming travel plans for H-1B workers.
- Consider filing extensions, amendments, or transfers while workers remain in the U.S.
- Plan budgets accordingly for the possibility of significant new fees.
- Monitor DHS and DOL rule-makings on prevailing wages and prioritization of high-paid, high-skilled petitions.
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