President Donald Trump has signed a proclamation introducing a $100,000 annual fee for H-1B visa applications, a significant increase from the previous $215 charge. This move is part of a broader immigration overhaul aimed at reducing legal immigration and prioritizing U.S.-born workers. The policy has sparked immediate concerns among businesses and foreign workers who rely on the H-1B program, particularly in the technology and healthcare sectors.
Key Details of the New Policy
The $100,000 fee will be imposed annually for each H-1B visa application or renewal. This substantial increase is expected to significantly reduce the number of applications, potentially falling below the current annual cap of 85,000 visas. Commerce Secretary Howard Lutnick stated that the high cost would encourage companies to focus on training domestic workers rather than relying on foreign labor. The policy also includes provisions to raise prevailing wage standards, aiming to ensure that H-1B workers are not paid below-market rates compared to U.S.-born workers.
AP News
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Exemptions and Immediate Impact
Certain industries will be exempt from the new fee. Specifically, applicants working in healthcare and engineering fields will not be subject to the $100,000 fee. This exemption aims to address critical labor shortages in these sectors.
The Times of India
The policy is set to take effect on September 21, 2025, at 12:01 a.m. ET. Companies have been advised to ensure that the new fee is paid for each H-1B petition to avoid delays or denials. Major tech firms, including Amazon, Microsoft, and JPMorgan, have issued internal communications urging H-1B visa holders to remain in the U.S. or return promptly to comply with the new regulations.
Business Insider
Industry Reactions and Legal Challenges
The announcement has been met with criticism from various sectors. The Indian IT industry body Nasscom expressed concerns that the abrupt implementation of the policy could disrupt global operations and hinder ongoing U.S.-based projects for Indian firms. They warned that the policy could have ripple effects on the U.S. innovation ecosystem and global job markets due to increased operating costs.
Reuters
Critics argue that the fee increase could disproportionately affect smaller companies and startups that rely on the H-1B program to access skilled talent. There are also concerns that the policy may lead to a brain drain, with foreign professionals seeking opportunities in countries with more favorable immigration policies.
Legal experts have questioned the authority of the executive branch to impose such a substantial fee without congressional approval. The American Immigration Council’s policy director, Aaron Reichlin-Melnick, noted that Congress has only authorized the government to set fees to recover the cost of adjudicating an application, not to generate revenue.
Reuters
Looking Ahead
As the policy takes effect, businesses and foreign workers will need to navigate the new landscape of H-1B visa applications. Companies may need to adjust their hiring strategies and consider alternative visa options to meet their staffing needs. The long-term impact of this policy on the U.S. labor market and innovation capacity remains to be seen, and it is expected to be a topic of ongoing debate and legal scrutiny.
For more information on the new H-1B visa fee policy and its implications, you can refer to the official announcement from the White House or consult with immigration law experts.