New H-1B Visa Petitions Face $100,000 Fee Under Trump Proclamation

President Donald Trump has enacted a proclamation imposing a significant $100,000 fee on new H-1B visa applications, a move effective September 21, 2025. This substantial increase aims to overhaul the program for skilled foreign workers, though initial clarifications indicate the fee applies only to new petitions for individuals outside the U.S. The decision has sparked widespread discussion regarding its implications for American competitiveness and the tech industry.

The administration justified the fee by stating its intent to prioritize U.S.-born workers and address perceived abuses of the H-1B program. Commerce Secretary Howard Lutnick emphasized that companies would need to decide if a foreign worker is "valuable enough" to warrant the payment, suggesting a shift towards higher-skilled, higher-paid individuals. This aligns with broader efforts to ensure H-1B visas do not undercut American salaries.

The initial announcement caused considerable confusion and anxiety among current H-1B visa holders and employers. However, the White House quickly clarified that the $100,000 is a one-time fee per petition, not an annual charge, and does not apply to existing visa holders, renewals, or petitions filed before the effective date. This clarification aimed to ease concerns about immediate travel restrictions for those already in the U.S.

While major tech companies like Amazon and Microsoft advised employees to remain in the U.S. initially, the fee's impact is expected to vary. Small businesses and startups, which often rely on H-1B talent, may be disproportionately affected, potentially being "priced out," according to immigration attorneys. Conversely, large corporations with substantial financial resources are more likely to absorb the increased costs. The administration also proposed moving from a lottery system to one prioritizing higher-wage H-1B applications.

As "Deedy" noted on social media, the fee presents a balanced take with both positive and negative aspects. Critics argue it could hinder American competitiveness and innovation by limiting access to global talent, while proponents believe it will protect American jobs and ensure only the most valuable foreign workers are sponsored. Legal challenges are anticipated, and further procedural guidance on payment and exceptions is expected in the coming weeks.