The White House confirmed that President Donald Trump’s recently announced $100,000 fee for H-1B visa applications would apply exclusively to new applicants, offering a measure of relief to existing visa holders. This clarification was crucial as the initial announcement had caused considerable alarm among current H-1B workers, who feared they might face this substantial charge upon re-entering the United States.
The news of this proclamation immediately sent shockwaves through the Indian H-1B community. Many workers swiftly headed to airports, hoping to re-enter the U.S. before the new measure could be implemented. Immigration attorneys were inundated with frantic calls from clients, all concerned about being denied entry or facing the daunting new fee, highlighting the significant uncertainty sparked by the announcement.
A senior administration official clarified that the “$100,000 fee is only for new H-1B applicants,” and “current H1B visa holders will not have to pay to return to the U.S.” While this assurance aims to alleviate immediate worries, it does little to address the broader uncertainties surrounding the future of skilled immigration policies.
President Trump formally signed this executive order on September 19, 2025. He asserted that the substantial $100,000 annual charge on new H-1B petitions would combat alleged abuses by outsourcing firms that often replace American workers with less expensive foreign labor. Furthermore, the order instructs federal agencies to increase prevailing wage standards and to give preference to highly skilled and highly paid applicants, aligning with the White House’s stated goal of prioritizing American workers.
Experts predict that Indian nationals, who have consistently constituted over 70% of H-1B visa approvals in recent years, will disproportionately bear the brunt of this new fee.
Although the exemption provided immediate relief for many existing visa holders, legal experts caution that prospective applicants and their dependents will likely encounter significant financial burdens and heightened scrutiny as government agencies begin to enforce the new regulations.
The White House cited examples of major tech and outsourcing companies that reportedly laid off thousands of American employees while simultaneously obtaining numerous approvals for foreign workers. For instance, one firm allegedly secured over 5,000 H-1B slots in fiscal year 2025 despite cutting approximately 15,000 jobs. Another company was approved for nearly 1,700 H-1B workers concurrently with laying off 2,400 U.S. employees in Oregon. A third reportedly reduced its American workforce by 27,000 since 2022, yet received more than 25,000 H-1B approvals during the same timeframe.
Administration officials also presented labor statistics, asserting that the H-1B program has adversely affected the U.S. job market. Data showed unemployment rates for recent computer science graduates at 6.1% and computer engineering graduates at 7.5%—figures significantly higher than those for biology or art history majors. Concurrently, the population of foreign STEM workers in the U.S. more than doubled between 2000 and 2019, while overall STEM employment expanded by a comparatively modest 44.5%.
During the announcement, Mr. Trump stated that the new fee was designed to “protect American workers” and guarantee that only “valuable people” are admitted into the country. He conveyed to reporters at the White House, “We need workers, we need great workers, and this pretty much ensures that’s what’s going to happen.”
Commerce Secretary Howard Lutnick contended that this policy would halt the trend of companies training lower-paid foreign workers at the expense of their American counterparts. “No more will these Big Tech companies or other large corporations train foreign workers,” Lutnick declared, adding, “Train Americans, stop bringing in people to take our jobs.”
Under the new proclamation, employers must submit proof of fee payment before any H-1B petitions can be approved. Both the Department of State and the Department of Homeland Security are tasked with ensuring compliance, with non-payment leading to denied entry. Limited exceptions may be considered for hires deemed essential to national interest.
The $100,000 fee covers the duration of a three-year visa, meaning companies could incur costs up to $200,000 for a single worker over a six-year period. Secretary Lutnick explained that the policy’s intent is to compel employers to critically assess whether a foreign employee’s value truly warrants such an expenditure, or if it would be more pragmatic to hire an American instead.
This order is slated to remain in effect for 12 months, subject to potential extension. It further mandates the Department of Labor to begin developing new rules aimed at revising prevailing wage levels, and instructs the Department of Homeland Security to re-evaluate admission priorities, favoring applicants who are “highest-skilled and highest-paid.”
Immigration lawyers have expressed concerns about potential confusion as government agencies prepare to issue implementation guidance. They predict that businesses will face difficult decisions, either absorbing these significant new costs or reducing their hiring of foreign workers. Advocacy organizations have warned that such policies could deter highly skilled graduates from seeking careers in the United States, while various business associations fear adverse effects on innovation.
Senior Administration officials reiterated that the new levy applies solely to new H-1B applications, explicitly excluding current visa holders who are re-entering the country. While this offers some immediate reassurance, it still leaves many questions unanswered regarding the long-term outlook for skilled immigration.