Trump to add $100,000 fee for H-1B visas under new proposal

President Trump has ordered a sweeping change to the H‑1B visa program: employers will now have to pay a US$100,000 annual fee for each H‑1B visa application or renewal. The rule takes effect at 12:01 a.m. Eastern Time on September 21, 2025, and is set to last for twelve months unless extended.

The administration says the fee is intended to ensure that only highly skilled, high‐wage foreign workers come into the U.S. under the H‑1B program—curbing what it views as abuses, such as companies using H‑1B workers in entry‑level roles or paying them less than U.S. counterparts. It also directs that visa petitions not accompanied by the new fee will be rejected for specialty occupation workers currently outside the U.S., unless the case is flagged as in the national interest. 

The fee increase is dramatic—previous fees were often under US$5,000. In addition to the fee hike, the proclamation orders a revision of prevailing wage standards and aims to prioritize applicants who are highly paid or possess rare skill sets. 

Potential effects and reactions:

• The tech sector, especially companies and sectors that rely heavily on H‑1B visas (such as outsourcing firms and STEM‑focused employers), are likely to face significantly higher costs. 

• U.S. healthcare, especially hospitals relying on H‑1B visas for international medical residents and doctors, may face challenges. The new fee could make hiring foreign medical trainees prohibitively expensive. 

• The majority of H‑1B visa holders are from India (about 70%) and the policy is seen to disproportionately affect Indian professionals and Indian IT firms. 

• Some Indian observers believe the policy could backfire for the U.S., leading to talent staying abroad or returning home—potentially boosting growth in tech hubs like Bengaluru, Hyderabad, Pune, and Gurgaon. 

• Critics warn the fee could stifle innovation in the U.S., discourage global talent mobility, raise costs for businesses, and possibly lead companies to locate more work outside the U.S.

Source: CBS NEWS