New $100,000 H-1B Visa Fee: Updates, FAQs & Consequences – Full analysis by VisaNation

Further to our previous H-1B Proclamation update, President Trump signed a proclamation on September 19, 2025, introducing a new $100,000 H-1B visa fee requirement. On September 20th, USCIS published a new memorandum clarifying much of the uncertainty surrounding the fee and its impact.

Nonetheless, many questions remain, leaving many H-1B employers and employees uncertain of the future.

What the H-1B Proclamation Requires

The new rule titled “Restriction on Entry of Certain Nonimmigrant Workers” requires that any new H-1B petition filed on or after 12:01 a.m. EDT on September 21, 2025, must include a $100,000 payment to be processed.

Guidance has not yet been offered as to how this payment should be made and how it will be processed.

This fee applies to both cap-subject filings, such as the upcoming 2026 H-1B lottery, and also to any other new H-1B petitions submitted after the effective date.

Universities and nonprofit research organizations require guidance on whether they are subject to this new fee.

Clearing up H-1B Proclamation Confusion

• The rollout does not impact current H-1B holders.
• The $100,000 fee is a one-time charge per petition, not an annual payment. This was clarified by White House Press Secretary Karoline Leavitt.
• No guidance on whether the $100,000 is refundable if a petition is denied or withdrawn.
• The proclamation references exceptions in the “national interest,” but agencies have not yet defined how these would be requested or adjudicated.

Implications for Employers, Employees & Students

The implications of the new H-1B proclamation are significant. VisaNation managing attorney Shilpa Malik states: “The White House’s new rule, adding a massive $100,000 fee on H-1B visas, is a fundamental reshaping of the H-1B landscape.

While big corporations can simply shrug it off and add it to their payroll costs, this poses a potential dead-end for smaller companies, startups, and non-profits. These updates make H-1B program a a “pay-to-play” system, where only the wealthiest corporations can bring in top talent.

The new policy also directs the Department of Labor (DOL) to raise prevailing wage levels, increasing the cost of a visa petition but also the ongoing operational cost of employing a foreign worker.

All of these changes could be a major blow to U.S. universities. For many international students, the dream of working in the U.S. is what makes a costly American degree worth it. Now that a clear path is blocked by a huge financial hurdle, talented students may seek education in places like Canada or Germany instead.

Ultimately, this new policy could hurt the U.S. both in the tech industry and in higher education, and with the likelihood of lawsuits, the final outcome is still a big question mark.”

Impacts on the H-1B Lottery

The immediate question on everyone’s mind is whether this will make the upcoming H-1B lottery less competitive. While news is still coming in since the initial proclamation, our current assessment is that this fee will make the lottery less competitive, but in a nuanced way.

This fee, while eye-catching, is unlikely to dissuade large tech employers and multi-billion-dollar corporations from pursuing the H-1B program.

Their demand for specialized foreign talent remains steadfast, particularly in critical fields like AI, biotechnology, and semiconductor design.

For such organizations, we anticipate that the additional cost will likely be absorbed as part of their ongoing investment in specialized talent acquisition.

In contrast, we believe small and mid-sized companies, startups, and consulting firms will be affected more severely. For them, the new fee is not just a line item, but a factor that will make H-1B sponsorship economically unviable for all but the most essential roles.

This will reduce the overall number of registrations and petitions, making the process more selective and less of a numbers game. Should this prove true, it may result in a reduction in overall petition volume and could, in turn, shift the competitive dynamics of the lottery process.

What Decline is Expected?

Last year’s lottery (FY 2026) saw roughly 343,981 eligible registrations, a dramatic drop from the 758,994 in FY 2024 due to new anti-fraud measures. This new $100,000 fee, which applies to the petition, not the initial registration, will be a far more powerful deterrent.

Given the exorbitant new cost, we anticipate an even more substantial decline in registrations than what we saw last year. A drop of up to 50% is a realistic expectation, especially among smaller employers who often submit high volumes of applications.

It is critical to note, however, that the fee is applied at the petition stage. This means companies can still register at minimal cost, but will be forced to think twice before following through with a full petition.

The likely outcome is fewer speculative filings, but not the disappearance of demand from employers who truly need the workers.

Alternatives: L-1 and O-1 Visas

As employers reassess their strategies, the L-1 and O-1 visa categories will absolutely look more attractive. The new H-1B fee effectively makes these alternatives more financially viable for a wider range of companies and employees.

• L-1 Visas (Intracompany Transferee): This visa allows for the transfer of a manager, executive, or employee with specialized knowledge from a foreign office to a U.S. office. For multinational companies, the L-1 offers a predictable pathway and bypasses the lottery altogether.
• O-1 Visas (Extraordinary Ability): This visa is for individuals with extraordinary ability or achievement. The lack of a cap or lottery makes it a highly compelling option for top-tier talent. However, both categories come with limitations:

The L-1 requires a qualifying relationship with a foreign office and at least one year of prior employment abroad, which limits its use for new hires.

The O-1 has high evidentiary thresholds, meaning it is only accessible to a very specific pool of candidates. While they will not be a perfect substitute for the H-1B, they will become more actively pursued, and employers may invest more in preparing candidates for these alternative pathways.

Bottom Line: The U.S. Risks Its Competitive Edge

This proclamation fundamentally changes the character of the H-1B program. With this new cost barrier, the U.S. is effectively signaling that access to high-skilled immigration is a privilege reserved for only the largest and best-resourced employers.

This risks excluding startups and small to mid-sized firms, who often drive the innovation and job creation that the H-1B program was originally designed to support.

The real story here is not just about numbers; it’s about whether the U.S. will continue to compete for global talent across all sectors of its economy, or whether it will cede ground to other countries with more accessible, less politicized immigration pathways.

Important Reminder: Circumstances Are Subject to Change

This proclamation is a dramatic step and has left many questions unanswered. It is an evolving situation that is likely to be litigated in court, and its final impact remains to be seen.

The proclamation itself doesn’t explicitly exempt certain employers, such as non-profits and universities (which are typically cap-exempt), or smaller employers who already receive certain fee exemptions.

It does, however, allow for case-by-case exemptions if it is determined to be in the national interest of the United States. The lack of clarity on these key issues has created significant uncertainty, and we anticipate that future guidance or court challenges will shape the outcome of this new policy.