President Donald Trump announced that his administration will impose a $100,000 fee on new H-1B visa petitions. The new fee went into effect as of September 21, 2025, and will greatly impact employers’ ability to secure the highly educated foreign workers who come to the United States on the H-1B visa.
Employers will now be required to pay a one-time $100,000 fee per new petition. Previously, it cost employers between $2,000 to $5,000 per petition, depending on the size of the employer.
What is the H-1B visa?
The H-1B visa category allows employers to petition for highly educated foreign professionals to temporarily work in “specialty occupations.” These jobs require at least a bachelor’s degree or the equivalent and include positions like civil engineers, software developers, and researchers. Typically, the initial duration of an H-1B visa classification is three years but may be extended up to six.
Since creating the visa program in 1990, Congress has limited the number of H-1Bs made available each year. The current annual statutory cap is 65,000 visas, with 20,000 additional visas for foreign professionals who graduate with a master’s degree or doctorate from a U.S. institution of higher learning.
Who are H-1B workers?
H-1B workers are often in the mathematics, engineering, technology, and medical science fields, ranging from software engineers and doctors to architects and financial analysts. The majority, however, (nearly 65%) had computer-related jobs as of 2023 data.
Over 70% of H-1B visa holders are Indian citizens. Though the move could lead to issues for U.S. businesses with Indian ties, the impact extends beyond the financial.
India’s Ministry of External Affairs issued a response to President Trump’s new fee, stating that the measure will likely have “humanitarian consequences by way of the disruption caused for families.” The statement went on to say that the Indian government “hopes that these disruptions can be addressed suitably by the U.S. authorities.”
In the immediate aftermath of the fee announcement, families were left behind as H-1B visa holders scrambled to reach the United States before the fee went into effect, fearing they would be locked out of the country. Though the White House later clarified that the fee would not apply to existing visa holders, confusion had already gripped visa holders, their families, and the companies that employ them.
Some have canceled their plans to return to their home countries, believing that even a vacation is too risky right now.
How will U.S companies be impacted?
Some of the largest tech companies and top banks in the U.S. will be hit particularly hard by the change.
Amazon was the biggest sponsor of H-1B workers for fiscal year 2025, employing over 10,000 people with the visa, followed by other household names like Microsoft, Meta, Apple, Google, Cognizant Technology Solutions, JPMorgan Chase, and Walmart.
Economists are already sounding the alarm that the astronomical fee will likely hurt the U.S. economy, resulting in a “brain drain” of qualified workers moving to other countries and slower economic growth overall.
Do H-1B workers take jobs from Americans?
No, they do not take jobs from U.S. workers. Before an employer can file a petition with USCIS, they must take specific steps to ensure that hiring an H-1B worker will not harm U.S. workers.
Employers first must attest, on a labor condition application certified by the Department of Labor, that employment of the foreign worker will not adversely affect the wages and working conditions of similarly employed U.S. workers. They also must provide existing workers with notice that they plan to hire an H-1B worker.
In fact, studies have found that H-1B workers complement and strengthen employment opportunities for native-born workers in the United States. That’s why unemployment rates are relatively low in occupations that hire large numbers of H-1B workers.
Low unemployment rates in the occupations typically requested for H-1B workers from 2004 through 2023 (even during the COVID-19 pandemic) show that demand for labor exceeded the supply.
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