Close
Updated:

A Price Tag on H-1B Visas: Breaking Down Trump’s Major Proclamation

 

Few immigration programs spark as much debate as the H-1B, and now it is back in the spotlight. The Trump administration’s latest move has the potential to reshape how employers recruit and retain technical talent, with ripple effects across workforce planning.


TL;DR: On September 19, 2025, President Trump signed a proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers” targeting the H-1B program. It requires a $100,000 payment to accompany any new H-1B petition filed after September 21, 2025, at 12:01 a.m. EDT, including the 2026 lottery. USCIS guidance and the USCIS FAQ confirm that this does not apply to petitions filed before that time, to renewals, or to current H-1B visa holders’ ability to travel. Expect additional rulemaking and potential legal challenges.


What the Proclamation Does

On September 19, 2025, President Trump signed a proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers.” The order targets the H-1B program, which the administration says has been misused to undercut American workers, and introduces sweeping new requirements for employers.

Most significantly, the proclamation imposes a $100,000 payment for each new H-1B petition filed after 12:01 a.m. EDT on September 21, 2025. Petitions without the payment will be denied, and corresponding visa stamps will not be issued.

Key details include:

  • Cost and Timing: A $100,000 payment must accompany any new H-1B petition filed after Sept. 21, 2025, 12:01 a.m. EDT. This includes the 2026 lottery. The restriction lasts for 12 months unless extended.
  • Scope and Exceptions: Does not apply to petitions filed before the effective time, previously issued H-1B visas, or renewals. The $100,000 is a one-time fee on new petitions. The Department of Homeland Security may also grant national-interest exemptions for individuals, companies, or even entire industries if their employment is deemed in the national interest and not a security risk.
  • Compliance and Enforcement: The Department of Homeland Security and the Department of State are coordinating implementation. USCIS has issued guidance, U.S. Customs and Border Protection has issued guidance, and the State Department has instructed consular posts consistent with those materials.
  • Related Rulemaking: The Department of Labor will propose higher prevailing wage levels, while the Department of Homeland Security will propose prioritizing high-skill, high-pay workers in the H-1B lottery. Additional reforms are under consideration.
  • Travel: Current H-1B visa holders may continue to travel. USCIS’s memo and FAQ confirm no change to travel for existing visa holders.

How USCIS Narrowed the Scope

When the proclamation was first issued on September 19, employers faced significant uncertainty. Our Client Alert, published the next day, reflected that moment in time by taking a conservative view of potential risks while noting that the situation was “evolving.”

Indeed, by the evening of September 20, USCIS released a memorandum providing much-needed clarity:

  • The proclamation applies only to petitions filed after September 21, 2025.

  • It does not affect current H-1B visa holders’ ability to travel.

And on September 21, USCIS published an FAQ, reinforcing and expanding on that guidance. The FAQ confirmed that:

  • The $100,000 requirement applies to any new petition, including the 2026 lottery.

  • The new fee is one-time only and does not apply to renewals.

  • Current visa holders may continue to travel without restriction.

Taken together, the memo and FAQ narrowed the scope considerably. As Sanford Posner observed on LinkedIn, the key takeaway is that the new rules are forward-looking, while employees currently in H-1B status remain unaffected.


What Employers Should Do

Our Pierson Ferdinand Immigration Practice Group highlighted several immediate considerations in its Client Alert:

  • Budgeting: Employers need to factor the $100,000 per-worker fee into any new filings after September 21, 2025, including the 2026 lottery.
  • Travel: While USCIS clarified that current H-1B visa holders can travel without restriction, employers should still monitor evolving guidance for employees abroad.
  • Exceptions: National-interest waivers may be available, though standards are undefined and will likely be applied sparingly.
  • Litigation watch: Challenges to the proclamation are expected, and outcomes could alter how (or if) the restrictions are enforced.

Pierson Ferdinand Insights

Our Immigration Practice Group is closely monitoring this rapidly evolving situation. As noted in the Client Alert, the proclamation “raises more questions than it directly answers,” and further developments — from litigation to new rulemaking — are likely.

For ongoing updates and deeper analysis, connect with our immigration partners:

Contact the team at immigration@pierferd.com with questions.

Or perhaps, we should have a Zoom for readers of the blog. What you do you think? Email me and let me know.