On September 19, 2025, the White House dropped a policy shift that has significant ramifications for global employers. In a surprise presidential proclamation, the U.S. announced a new one-time $100,000 filing fee for new H‑1B visa petitions providing barely 48 hours’ notice before implementation. The change took effect at 12:01 a.m. ET on September 21 and applies to all new H‑1B applications filed from that point forward.
For U.S. companies and global employers alike, the impact is immediate. The H‑1B visa has long been a cornerstone for attracting high-skilled foreign talent, especially in tech, finance, engineering, and healthcare. Factoring in a six-figure fee for foreign talent materially changes the economics.
Market and corporate response.
Global markets reacted quickly to the announcement, with the sharpest drop felt in India, where the economy is heavily dependent on exporting tech talent to the United States. Major IT firms and outsourcing companies—some of the largest H-1B users—face potential financial impacts in the billions.
While the immediate volatility was concentrated in South Asia, the broader effect will be felt among large U.S. employers in tech and related industries. The fee transforms H-1B sponsorship into a high-cost commitment, forcing companies to reevaluate whether to proceed with new hires under this route.
Who’s affected, and who isn’t.
The fee applies only to new H‑1B petitions. That’s an important distinction. The additional cost doesn’t apply to existing H-1B visa holders or to renewal applicants. Nor does it apply retroactively to petitions filed before the effective date and time.
There was widespread confusion initially around whether existing H‑1B holders would need to pay the fee when re-entering the U.S. after international travel. The administration has since clarified: No, re-entry isn’t subject to the new charge. But for any employer preparing to file a new petition—even if the candidate is already in the U.S.—that $100,000 payment is now part of the process.
The employer perspective.
The immediate question for HR leaders and global mobility managers is obvious: Can you absorb the cost?
At $100,000 per filing, the new fee makes sponsoring an H‑1B visa worker a significantly higher-stakes decision. The upfront cost may make employers more selective in who they sponsor—or even steer them toward alternate visa routes altogether.
Beyond the fee itself, the proclamation also instructs the Department of Labor to revise prevailing wage levels. Though details haven’t yet been released, employers should prepare for an upward shift in required salary levels, raising the overall cost of sponsorship further.
The policy also references potential national interest exceptions, but as of now, there’s little detail on how these will be defined or applied. It’s possible that certain high-demand roles or industries may see exemptions, but employers should proceed on the assumption that the $100,000 fee will apply in most cases.
The financial burden will not be confined to the largest corporates. Small and medium-sized businesses, mid-tier companies, universities, and cap-exempt institutions are likely to feel the greatest strain. For these employers, the fee could make sponsorship financially unfeasible, leading to international hiring freezes or the winding down of programs that rely on foreign talent.
Applicant uncertainty
For individuals, the announcement has created deep anxiety. Candidates with pending petitions are left wondering whether employers will absorb the fee, pass it on to employees, or implement clawback provisions. The uncertainty is especially acute for early-career professionals, for whom the additional cost could act as a barrier to pursuing opportunities in the U.S.
Strategic implications for global talent planning.
This is more than just a budget issue—it’s a mobility and workforce planning issue.
Companies that rely heavily on foreign talent, particularly in STEM fields, are likely to face increased friction in their U.S. hiring strategies. Early-career hires, lower-compensated roles, and shorter-term assignments may no longer be financially justifiable through H‑1B. In response, some employers may look toward alternative U.S. visa categories such as O‑1 (extraordinary ability) or permanent residency routes for highly skilled workers.
Others may rethink their global talent footprint altogether, opting to hire talent remotely or relocate roles to other jurisdictions with more predictable and cost-effective immigration frameworks.
The $100,000 fee may reshape the H-1B program for years to come.
- Barrier for smaller firms: The cost will disproportionately impact smaller employers, limiting their ability to compete for global talent.
- Shift in hiring strategies: Some companies may pivot toward domestic hiring or increased offshoring of roles.
- Increased demand for alternatives: Expect greater use of L-1 intra-company transfers and O-1 visas for specialized workers, as employers seek cost-effective solutions.
- Global redistribution of talent: Reduced inflows to the U.S. may redirect skilled professionals to countries with more open frameworks, such as Canada’s Global Talent Stream, the UK’s Global Business Mobility routes, or the EU’s Blue Card scheme.
- Potential legal challenges: Business lobbies, including the U.S. Chamber of Commerce, are expected to challenge the order, arguing it exceeds presidential authority under INA 212(f).
What should employers do now?
Petitions filed before the cutoff time avoided the new fee—but those windows are now closed. Going forward:
- Budget realistically for the $100,000 fee on all new H‑1B filings.
- Reassess roles under consideration for H‑1B sponsorship. Higher compensation, seniority, or strategic value may become key criteria.
- Monitor developments around national interest exceptions and prevailing wage updates, which could significantly alter case-by-case strategy.
- Consult immigration counsel early in the decision-making process to explore alternatives and avoid missteps in filing or eligibility assessments.
A policy with a global ripple effect.
The order underscores a strong “America First” stance, framing labor protection in the starkest terms: global talent now carries a $100,000 price tag. In comparison, even the historically high immigration fees in markets such as the UK appear modest.
The measure includes a 12-month sunset clause, theoretically allowing Congress time to act. In practice, it means ongoing volatility and uncertainty until further guidance is issued. For employers, the need for consultative immigration support has never been greater, both to navigate alternatives and to remain compliant in a rapidly shifting landscape.
This policy shift is one of the most dramatic cost changes to U.S. employment-based immigration in recent memory. Whether it achieves its intended policy goals remains to be seen, but the impact on employers is immediate and significant.
For companies managing cross-border talent, the takeaway is clear: U.S. immigration just got more expensive—and more complex. Strategic planning, compliance alignment, and cost forecasting will need to evolve quickly. For tailored guidance on navigating changes affecting your U.S. immigration program, or to explore alternatives to the H-1B, contact Newland Chase to speak with our global immigration experts.
This immigration update is for informational purposes only and is not a substitute for legal or scenario-specific advice. Furthermore, it is important to note that immigration announcements are subject to sudden and unexpected changes. Readers are encouraged to reach out to Newland Chase for any case- or company-specific assessments.
