US President Donald Trump stunned the world once again with a new steep fee on the H-1B visa. The new rule, which charges $100,000 per visa, is regarded as a big setback to the international IT community, with a major hit for Indian engineers and technology specialists. The action has caused a lot of confusion, and here’s the explanation of the new regulation and its effects.
Comprehending The New $100,000 Fee
From September 21, 2025, US businesses need to remit a fee of $100,000 per H-1B application for foreign employee entry or re-entry into the country. The fee does not depend on whether the employee is a new addition, re-entering after travel, or switching employers. Employees cannot return to the US until the company has paid the fee.
The policy announcement is not a congressional bill; it already is an active US policy by presidential proclamation. It will continue to exist until repealed or amended by Congress or a succeeding administration.
Key Questions About The Policy
Is the $100,000 an annual fee? The proclamation only refers to it as a “payment,” without specifying if it’s a one-time or an annual charge. This implies it applies to every new entry or re-entry into the US. It remains unclear if it will be an annual fee for existing employees who do not travel.
What if an employee goes abroad? If an H-1B worker departs the United States after September 21, he or she will not be able to re-enter until the company pays the extra $100,000 fee. This has caused several tech firms like Microsoft to instruct workers to cancel travel plans.
Who will employers pay for? Employers will only pay the premium for their most highly qualified, senior, or project-critical staff. This will cause a massive crisis for mid-level and entry-level employees.
What then of H-4 dependents? While H-4 dependents (children and spouses) are not mentioned in the proclamation, families are being told by companies to stay in the US or go back home if they happen to be outside. The fear is that the new policy will inadvertently impact the status of a dependent.
What if the employee gets fired? The 60-day window for acquiring a new job still exists. The $100,000 fee, however, would be an enormous deterrent for any new business and would make it nearly impossible for laid-off workers, particularly junior workers, to gain new jobs.
Is this the death of the Green Card for H-1B holders? Officially, no, but the way has become less certain. With greater PERM labor scrutiny and already lengthy Green Card queues, the path to permanent residency is now harder.
Policy Rationale And ‘Project Firewall’
Trump has said that the new policy is a means to prevent abuse of the H-1B visas and make employers hire American citizens first. The new initiative by the administration, or ‘Project Firewall,’ will audit firms that abuse the visa program by sharing information among government agencies and charging penalties.
The policy will hit Indian tech workers most critically, who account for more than 70% of all H-1B visa recipients. Indian IT firms such as Infosys and TCS, as well as American tech firms such as Google and Microsoft, are all likely to suffer from recruitment problems.
Is The Rule Reversible?
Yes. The regulation has a provision for a 30-day mandatory review after the next H-1B lottery. The Secretary of Labor and other authorities may advise the president to continue, amend, or revoke the regulation. Nonetheless, until it is formally repealed, the $100,000 charge stands.
