Trump Administration Imposes $100,000 H-1B Visa Fee
President Donald Trump revolutionised skilled worker immigration to the United States on September 19, 2025. He signed a proclamation called “Restriction on Entry of Certain Nonimmigrant Workers.” The executive order sets a massive $100,000 (INR 8438045.08) fee on certain H-1B visa petitions. This stands as one of the most important changes to the visa programme since it began. The administration claims this proclamation will tackle alleged abuses of the H-1B system that “undermined both our economic and national security.”
When does the new fee take effect?
The new $100,000 H-1B visa fee started at 12:01 a.m. eastern daylight time on September 21, 2025. Employers and future visa applicants barely had time to prepare. The restriction will end after 12 months unless extended. All the same, the Department of Homeland Security and Department of State must tell the President within 30 days after the next H-1B lottery if extending the restriction benefits the United States.
Which petitions are subject to the new cost?
The proclamation’s original language created widespread confusion about affected H-1B applications. The U.S. Citizenship and Immigration Services (USCIS) later clarified that the fee applies only to new H-1B visa petitions submitted after the effective date. The fee doesn’t apply to:
- Previously issued H-1B visas
- Any petitions submitted prior to the September 21 deadline
- H-1B extensions with the same employer
The White House stated the fee will first affect H-1B lottery cases submitted in 2026. Questions still remain about whether other types of petitions will need the $100,000 fee, such as H-1B change of employer applications or amendments filed after September 21.
The proclamation also lets the Secretary of Homeland Security waive the fee if you have individuals, companies, or entire industries deemed in the national interest without posing security threats.
How does this compare to previous H-1B fees?
Previous costs were nowhere near the new $100,000 fee. Employers paid between $2,000 to $5,000 (approximately INR 168760.90 to INR 421902.25) per petition before this proclamation. The amount varied based on the employer’s size and processing needs. The core fees typically had:
- A $215 (INR 18141.80) registration fee
- A base petition fee of $460-$780 (INR 38815.01-INR 65816.75)
- A $500 (INR 42190.23) anti-fraud fee
- An extra $4,000 (INR 337521.80) fee for larger employers with over 50% of staff on H-1B or L-1 visas
- Optional premium processing at $2,805 (INR 236687.16) to speed up approvals
Immigration attorneys suggest courts might strike down this fee increase—about 20 times higher than before—as “excessive.” Federal law only allows agencies to charge enough to cover reasonable costs.
The administration also directed the Department of Labour to revise prevailing wage levels. The Department of Homeland Security must now prioritise high-skilled, high-paid workers in the H-1B programme.
USCIS Alters H-1B Lottery to Prioritise High-Wage Jobs
The Trump administration showed plans to completely change how H-1B visa candidates are selected, along with the hefty new fee. The Department of Homeland Security (DHS) released a proposal on September 23, 2025. This proposal would replace the current random lottery with a system that gives preference to higher-paid foreign workers. This change marks the second major overhaul to the H-1B programme within a week.
What is the new weighted lottery system?
The proposed rule brings in a “weighted selection” process for H-1B visa applications. This happens at the time just needs exceed the annual statutory limit of 85,000 visas. The new approach favours registrations offering higher wages, unlike the current system where all eligible applications have equal odds of selection.
The weighted lottery system gives different chances to each wage level:
- Level IV (highest wage): Four chances in the lottery
- Level III: Three chances
- Level II: Two chances
- Level I (entry level): One chance
This system changes selection probabilities significantly. All applicants currently have a 29.59% chance of selection. Level IV workers would see their selection probability rise to 61.16% after implementation. Level I workers’ chances would drop to just 15.29%. Level III workers would get a 45.87% selection probability. Level II workers would see a small increase to 30.58%.
How are wage levels categorised?
The Department of Labour’s Occupational Employment and Wage Statistics system forms the basis for wage levels that determine lottery chances. Jobs are divided into four tiers based on experience, education, and supervisory responsibilities.
Level I positions need routine tasks, limited judgement, and close supervision. Level II roles require good occupational understanding and moderately complex tasks. Level III positions need strong expertise, specialised skills, and often include supervisory duties. Level IV marks fully competent professionals who plan work independently and solve complex problems with advanced techniques.
Employers must pick the highest wage level matching their offered salary for each H-1B candidate. On top of that, USCIS would assign the candidate to the lowest wage level among all submissions if multiple employers submit registrations for the same candidate at different wage levels.
Why is the change being implemented?
The administration believes this reform will ensure the H-1B programme “is used to hire only the best of the best temporary foreign workers”. Official statements highlight the need to protect American workers from unfair wage competition. The government expects total wages paid to H-1B workers to increase by $500 million in fiscal year 2026. This would grow to $2 billion by fiscal 2029-2035.
Critics say this approach hurts international students and entry-level professionals unfairly. Recent applicant analysis shows that 53% of international students were paid at Level I and 37% at Level II. A survey revealed that 53% of international student respondents would not have enrolled at U.S. universities if H-1B access depended on wage levels.
The DHS welcomes public comments for 30 days starting September 25. Implementation could target the 2026 lottery cycle.
Policy Exemptions and Validity Rules Explained
Recent headlines about major changes to the H-1B programme have sparked interest. Both employers and visa applicants need to know the details about exemptions and validity rules. These rules decide who can avoid paying hefty fees and determine how long workers can stay legally in the United States.
Who is exempt from the $100,000 fee?
The proclamation applies to new H-1B petitions broadly, but several key exemptions exist. USCIS has made it clear that these groups don’t need to pay the $100,000 fee:
- Beneficiaries of H-1B petitions filed prior to September 21, 2025
- Current H-1B visa holders with approved petitions
- H-1B extensions of stay with the same employer
The proclamation also includes a national interest exception process. The Secretary of Homeland Security can exempt people, companies, or entire industries that serve national interest without threatening U.S. security or welfare. No specific industries or roles have received this exemption yet.
What are the new rules for owners of petitioning companies?
Companies where an H-1B applicant owns more than 50% or has majority voting rights can qualify as employers. These companies can petition for the owner’s H-1B status. The “beneficiary owners” must spend most of their time on specialty occupation duties. They can only handle non-specialty tasks that directly relate to running the company.
Unlike standard H-1B petitions, beneficiary owners get shorter validity periods. Their first petition and initial extension last only 18 months each instead of three years. Department of Labour rules about Labour Condition Applications still apply, including proper wage determinations.
How long is the H-1B visa valid under the new policy?
H-1B holders can stay up to three years at first. They can extend their stay for three more years, allowing a total stay of six years. Some people can stay longer than six years, especially those with approved immigrant petitions who can’t move forward because visa numbers aren’t available.
Employers must file extension petitions before the current visa expires. Workers can keep working up to 240 days after their visa expires while USCIS processes the extension. H-4 dependents stay in valid status during this 240-day period if they file their extension before their current H-4 status ends.
Employers and Workers Brace for Economic Impact
The Trump administration’s recent overhaul of the H-1B visa programme represents one of the biggest immigration policy changes in decades. Two major changes stand out: the extraordinary $100,000 fee requirement and the weighted lottery system that favours higher-paid workers. These modifications have changed how companies recruit skilled foreign workers.
Companies used to pay between $2,000-$5,000 per petition. The twentyfold increase has turned the H-1B programme from an available talent acquisition pathway into an exclusive option that wealthy corporations can afford. The lottery system’s wage-level weighting puts entry-level professionals at a disadvantage, especially recent international graduates from American universities.
Your organisation’s immigration strategy needs a clear understanding of these new rules if you employ H-1B workers or plan to hire foreign talent. The fee applies to new petitions submitted after September 21, 2025. Exemptions exist for extensions with the same employer and certain national interest cases. The timing of applications and understanding eligibility criteria have become crucial.
These changes aim to protect American workers and increase H-1B beneficiaries’ wages, and they will alter the skilled immigration map. Evidence shows that international student enrollment at American universities might decline. Students might question the value of U.S. education without clear paths to post-graduation employment.
The Trump administration’s focus remains on restrictive immigration policies. Time will tell if these changes achieve their goals or push talent toward more welcoming countries. Employers and prospective visa applicants must direct their way through these new requirements. They should prepare for more changes as the policy continues to evolve.
Key Takeaways
The Trump administration has dramatically transformed the H-1B visa landscape with unprecedented changes that will reshape skilled immigration to the United States.
- Massive fee increase: H-1B visa costs have jumped from $2,000-$5,000 to $100,000, effective September 21, 2025, applying only to new petitions.
- Lottery system overhaul: A new weighted selection process favours higher-paid workers, with Level IV earners getting 61% selection odds versus 15% for entry-level positions.
- Limited exemptions available: Extensions with the same employer and pre-September 21 applications are exempt, plus national interest waivers at government discretion.
- International students face barriers: 53% of international students previously qualified at Level I wages, making post-graduation employment significantly more challenging.
- Corporate strategy shift required: Only wealthy corporations can afford the new fees, fundamentally changing how companies approach foreign talent recruitment.
These sweeping changes represent the most significant H-1B programme modifications in decades, potentially driving skilled talent to more welcoming countries whilst dramatically reducing accessibility for entry-level professionals and smaller employers.
FAQ:
Q1. What is the new fee for H-1B visa applications?
The new fee for H-1B visa applications is $100,000, which is a significant increase from the previous cost of $2,000 to $5,000. This fee applies to new petitions submitted after 21 September 2025.
Q2. Who is exempt from paying the new $100,000 H-1B visa fee?
Exemptions from the new fee include H-1B extensions with the same employer, petitions filed before 21 September 2025, and previously approved H-1B visas. There are also provisions for national interest exemptions at the discretion of the Secretary of Homeland Security.
Q3. How has the H-1B visa lottery system changed?
The lottery system now uses a weighted selection process that favours higher-paid workers. Applicants are categorised into four wage levels, with Level IV (highest wage) having the best odds of selection at 61.16%, while Level I (entry-level) has only a 15.29% chance.
Q4. How long is an H-1B visa valid under the new policy?
H-1B visas are generally valid for an initial period of up to three years, which can be extended for an additional three years, allowing a maximum stay of six years. Some exceptions may allow for extensions beyond the six-year limit.
Q5. How might these changes affect international students and entry-level professionals?
The new policy could significantly impact international students and entry-level professionals. With the weighted lottery system favouring higher-paid workers, recent graduates who typically qualify for Level I wages may find it much more challenging to secure H-1B visas, potentially leading to a decline in international student enrolment at US universities.