New $100,000 Fee on H-1B Visas Following Trump Order

President Donald Trump has signed a proclamation imposing a $100,000 annual fee on companies sponsoring H-1B visa workers. The order was issued from the White House on September 19, 2025. This move aims to drastically reshape the high-skilled immigration program.

Administration officials state the fee is designed to prioritize American hiring. It specifically targets the use of the visa for entry-level positions. The policy is expected to generate significant revenue while altering corporate hiring strategies.

Immediate Impact on Tech and Business Sectors

The H-1B program grants 65,000 visas each year. An additional 20,000 are reserved for holders of U.S. master’s degrees or higher. Sponsoring companies already pay thousands in existing filing and legal costs.

This new six-figure fee multiplies the total cost per employee exponentially. According to Reuters, this will heavily impact technology firms, finance companies, and consulting giants. These industries traditionally sponsor large numbers of foreign talent for specialized roles.

Startups and smaller enterprises may be priced out entirely. The additional financial liability could force them to offshore development teams or delay expansion plans requiring niche skills.

Legal Challenges and Market Reactions

Immigration attorneys immediately questioned the fee’s legality. A key issue is whether the executive branch can impose a charge far exceeding processing costs without new legislation from Congress. Legal challenges focusing on statutory authority are widely anticipated.

Financial markets reacted swiftly. Shares in IT consulting and outsourcing firms dipped on the news. Investors worry the policy will accelerate the relocation of high-value projects to countries with more favorable visa policies, such as Canada.

Supporters argue the fee will ensure the H-1B program is used only for truly specialized, high-wage roles that cannot be filled domestically. They see it as a necessary correction to protect American workers.

Uncertainty for Foreign Workers and Graduates

The tech sector sponsors the most H-1B workers, but healthcare and academia are also affected. Government data shows a majority of beneficiaries are from India, with China second. The fee’s impact will be keenly felt in major U.S. tech hubs.

The timing creates immense uncertainty for thousands of foreign students on F-1 visas. Many were counting on H-1B status after their Optional Practical Training (OPT) periods. University advisors are now guiding students to consider opportunities outside the U.S.

The proclamation was paired with a new “gold card” permanent residency program for ultra-high-net-worth investors. This contrast highlights the administration’s preference for immigration based on financial capital.

This new $100,000 H-1B visa fee represents the most significant change to the program in decades. Its implementation will redefine the cost of global talent recruitment in the United States, with profound consequences for the economy and international workers.

Info at your fingertips

What is the new H-1B visa fee?

The Trump administration has instituted a new $100,000 annual fee for companies that sponsor foreign workers on H-1B visas. This charge is in addition to all existing application and legal costs.

When does the $100,000 fee start?

The proclamation is effective for new and pending cases. Officials indicated it could be enforced starting September 21, 2025, though legal challenges may delay full implementation.

Which companies are most affected?

Technology firms that hire large numbers of foreign engineers and analysts are most impacted. Consulting, finance, and healthcare companies that use the H-1B program will also face significantly higher costs.

What are the alternatives to the H-1B visa?

Companies may pursue other visas like the O-1 for individuals with extraordinary ability or the L-1 for intracompany transfers. Many are also considering expanding operations in countries with more accessible work visa programs.

Could this fee be challenged in court?

Yes. Legal experts anticipate swift challenges arguing the executive branch overstepped its authority by setting a fee not directly tied to processing costs, a power typically reserved for Congress.

Trusted Sources: Reuters, Associated Press, The Wall Street Journal.
Disclaimer: This article reports on a governmental proclamation. Policy details are subject to change pending legal review and official implementation guidance from U.S. Citizenship and Immigration Services (USCIS).