On September 19, 2025, President Trump signed the proclamation ‘Restriction on Entry of Certain Nonimmigrant Workers’, introducing a $100,000 supplemental fee on certain H-1B petitions. On September 21, the White House and Department of State released FAQs clarifying how the fee will apply, when it takes effect and what it does not affect. These clarifications resolved earlier confusion from initial reports and provide employers with a clearer framework for compliance.
This update explains the changes, sets out the exemptions, and highlights the practical and strategic steps employers should now be considering.
H-1B Visa Fee Change
Effective 12:01 a.m. EDT on September 21, 2025, employers filing new H-1B petitions for beneficiaries outside the United States must pay a one-time supplemental fee of $100,000. Petitions filed without proof of this payment will be denied, and affected workers will not be permitted entry in H-1B status. The measure applies to all new filings after the effective date, including petitions submitted through the 2026 H-1B lottery.
H1B renewals and extensions are not subject to the fee. The proclamation will remain in force for 12 months unless extended or amended by the administration.
Exemptions
The FAQs confirm that the new fee does not apply to all petitions. Petitions filed before 12:01 a.m. EDT on September 21, 2025, are unaffected, and beneficiaries of petitions that had already been approved as of that date remain outside the scope of the proclamation.
Existing holders of valid H-1B visas may also continue to use them to enter and re-enter the United States without payment of the fee.
The proclamation also provides for a discretionary national interest exemption, which may be granted by the Secretary of Homeland Security to individuals, companies, or industries deemed essential to the national interest. However, the government has indicated that such exemptions will be rare and should not be relied upon as a general option.
Clarifications on Travel
Earlier reports suggested that H-1B workers outside the United States would need to re-enter before the proclamation took effect. This interpretation has been corrected. The FAQs confirm that current H-1B visa holders are unaffected and may continue to travel to and from the United States provided their visas remain valid. The new fee applies only to petitions filed on or after September 21 for beneficiaries who do not already hold valid H-1B status or visas.
Practical Implications for Employers
The immediate impact of the proclamation is financial. Employers seeking to file new petitions for workers abroad must now factor in the $100,000 fee in addition to standard USCIS filing fees, fraud prevention fees and associated costs. This is a significant increase in the cost of sponsorship and will affect hiring budgets, recruitment strategies and workforce planning.
The FAQs also make clear that employers will need to retain proof of the supplemental payment, as USCIS and the Department of State will require documentation during adjudication and visa issuance.
While renewals and extensions for individuals already in lawful H-1B status remain outside the scope of the fee, the situation regarding amendments, including changes of employer, has not yet been resolved. Employers should remain cautious, prepare for possible additional costs, and monitor closely for further guidance.
Strategic Considerations
From a strategic perspective, the proclamation represents a broader policy effort to reshape the H-1B program toward higher-paid, higher-skilled positions. Employers should review their workforce plans to determine whether the supplemental cost is justified for upcoming hires.
For the 2026 lottery, companies must decide in advance whether they are prepared to absorb the additional financial burden for any petitions that are selected.
In parallel, employers may wish to explore alternative immigration strategies. Our US immigration attorneys are highly experienced in advising on US-bound talent mobility and can work with you to examine other routes to bring key personnel to the US. Options such as the O-1 visa for individuals of extraordinary ability, the L-1 visa for intracompany transferees, or permanent residency sponsorship may provide more cost-effective solutions for critical hires. Employers should also revisit travel policies to ensure H-1B workers maintain valid visas, as lapses could trigger new petitions subject to the supplemental fee. For companies operating in sectors such as healthcare, defense or advanced technology, there is also a need to document workforce requirements carefully in case national interest waivers become available.
Future Reforms
The FAQs also preview a set of future reforms that will affect the H-1B program beyond the supplemental fee. The Department of Labor has been tasked with initiating rulemaking to raise prevailing wage levels, a change that will increase the minimum salaries employers must offer to sponsored workers. At the same time, DHS has announced that future H-1B lotteries will prioritize higher-paid, highly skilled applicants. These developments underscore a broader policy direction that will reward employers sponsoring top-tier roles while creating barriers for those seeking to rely on lower-wage or entry-level H-1B workers. Employers should anticipate further reforms in the months ahead and begin adjusting recruitment and workforce strategies accordingly.
Enforcement
The proclamation directs DHS, USCIS, and the Department of State to ensure strict enforcement. Implementation guidance has already been issued to USCIS adjudicators, CBP officers, and consular posts. Petitions and visas will not be approved without proof of the supplemental payment, and compliance checks are expected to intensify. Employers should prepare for closer scrutiny of petitions and ensure that documentation is complete, accurate, and audit-ready.
Need Assistance?
The September 19 proclamation and September 21 FAQs mark the most significant cost increase in the history of the H-1B visa program. While current visa holders and petitions filed before the deadline remain unaffected, new filings for beneficiaries outside the United States now trigger a mandatory $100,000 supplemental fee. Employers should immediately review hiring plans, budget for the fee where applicable and explore alternative immigration strategies. We will continue to provide updates as guidance emerges on amendments, exemptions and further reforms. For tailored advice on workforce planning, compliance obligations, and risk management, please contact us directly.
Author
Founder & Principal Attorney Nita Nicole Upadhye is a recognized leader in the field of US business immigration law, (The Legal 500, Chambers & Partners, Who's Who Legal and AILA) and an experienced and trusted advisor to large multinational corporates through to SMEs. She provides strategic immigration advice and specialist application support to corporations and professionals, entrepreneurs, investors, artists, actors and athletes from across the globe to meet their US-bound talent mobility needs.
Nita is an active public speaker, thought leader, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals.