The New H-1B Visa Rule Explained: What’s Changing?

On September 19, 2025, President Donald J. Trump signed a proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers.” (USCIS) This has introduced a new policy specifically targeting H-1B visa petitions.

Here are the headline changes:

  • A fee of US$100,000 must accompany any new H-1B petition submitted after 12:01 a.m. Eastern Daylight Time on September 21, 2025.
  • This applies to the 2026 H-1B lottery and any other new H-1B petitions filed after the deadline.
  • The rule does not apply to:
    1. Any previously issued H-1B visas.
    2. Petitions submitted before the 12:01 a.m. deadline on September 21, 2025.
    3. Renewals of existing H-1B status. The standard renewal processes and associated fees remain unchanged.
  • Also, this proclamation is the first of several reform steps. USCIS, the Department of Homeland Security (DHS), and the Department of Labor are working on additional rules to:
    • Raise and revise prevailing wage levels.
    • Prioritize high-skilled, high-paid applicants in the lottery.

Why This Matters

These changes are meant to “curb abuses and protect American workers,” according to USCIS. (USCIS) The effect is that only the more financially lucrative or higher wage offers (likely more specialized roles or senior levels) will realistically be able to participate in the lottery, since the entry cost is now much higher for the employer. It could also shift hiring strategies, salary negotiations, and how employers plan for H-1B hires.

Frequently Asked Questions (FAQs)

Below are some FAQs based on USCIS’s publication, plus some implications and strategy tips.

QuestionAnswer / Clarification
1. Does this $100,000 fee apply to all H-1B petitions?No. It applies only to new H-1B petitions filed after the specified deadline (after 12:01 a.m. EDT on Sept 21, 2025). It does not apply to renewals or petitions submitted before that deadline.
2. What counts as a “new” H-1B petition?USCIS uses “new” to mean petitions that are not renewals — i.e., for a beneficiary who either did not previously hold valid H-1B status, or whose current H-1B expired and is not being extended under existing status via the renewal rules. It includes lottery petitions and first-time petitions after the deadline.
3. If someone already has an H-1B, are they affected?Those with valid, existing H-1B status (or those whose petitions were filed before the deadline) are not affected. Their renewals also follow the prior fee structure.
4. What about the H-1B lottery for fiscal year 2026?The lottery for 2026 is subject to the new fee. Any lottery petition submitted after 12:01 a.m. on Sept 21, 2025 must include the US$100,000 payment.
5. Does this fee replace any existing fees?No — it is in addition to the other fees required by USCIS, etc., for filing a new H-1B petition. It’s a one-time surcharge for new petitions filed after the deadline.
6. Are there any exemptions?The announcement does not indicate that renewals are subject, or that past petitions are affected. It also does not exempt specific industries or types of H-1Bs in this published text. Unless further guidance is issued, new petitions are subject across the board.
7. What about prevailing wages and high-skill prioritization?USCIS / DHS / Department of Labor are working on separate rulemakings to revise prevailing wage levels (raising them) and to give priority in the lottery to those with higher wages / more specialized roles. These are future reforms; the $100,000 fee is immediate for new petitions.
8. When will the new fee begin to be enforced?Starting at 12:01 a.m. EDT on September 21, 2025 for new petitions.
9. If a petition is submitted just before the deadline but USCIS doesn’t receive it until later, is that okay?Documents submitted before the cutoff (i.e. filed with USCIS before 12:01 a.m. on the 21st) should avoid the fee. However, “filed” is a legal/practical term, so exact timing, postal/receipt dates matter. Employers should ensure timely filing and proof of submission.
10. Are there any travel or visa issuance effects?No. USCIS says the rule does not prevent current H-1B holders from traveling in and out of the U.S., and doesn’t affect previously issued H-1B visas.

Implications & What Employers / Applicants Should Do

Here are some strategic considerations, risks, and suggestions:

  1. Cost & Budgeting
    Employers planning to file H-1B petitions must budget an extra $100,000 for new hires under H-1B (beyond standard fees). This may disincentivize smaller companies or those with tight margins from sponsoring new H-1Bs.
  2. Selecting Candidates
    Employers may prioritize hiring higher-wage, higher‐skilled candidates, or only offer H-1B status to those whose positions justify the cost. Lower‐wage roles that previously may have been under H-1B might become less viable.
  3. Filing Before the Deadline
    If possible, employers hoping to avoid the new fee should submit new petitions before 12:01 a.m. EDT on September 21, 2025.
  4. Reassessing Use of Renewals vs New Petitions
    In some cases, an employer or worker might try to renew an existing H-1B, or transfer, to avoid a “new” petition designation. Legal advice will be important here.
  5. Legal & Compliance Risk
    Because of tight timing and the cost, mistakes in submission timing, or miscategorizing whether a petition is “new” vs “renewal,” can have serious financial implications.
  6. Competing in the Lottery
    Because of the intention to prioritize high salaries etc., there may be political or regulatory pressure on USCIS/DOL to define clear wage thresholds. Applicants/employers should stay apprised of further rulemakings.

Possible Concerns / Criticisms

  • Affordability & Access: The $100,000 price tag may create a barrier for startups, nonprofits, small firms, or individuals in less lucrative sectors.
  • Labor Market Distortions: Some argue this favors large corporations or elite tech companies, disadvantaging mid-level or entry expert roles.
  • Legal Challenges: The proclamation and implementation may face lawsuits, especially with respect to equal protection, administrative law, or impact on industries with fewer resources.
  • Uncertainty: Because further reforms are pending (prevailing wage changes, lottery prioritization, etc.), there’s a risk of shifting requirements making planning difficult.

Key Takeaways

  • If you or your employer wants to file a new H-1B petition, expect a US$100,000 surcharge, effective after September 21, 2025 cutoff.
  • Renewals and existing H-1B holders are not affected by that surcharge.
  • Timing is crucial: filing before the deadline avoids the fee.
  • Future reforms are likely to raise wage requirements and give priority to high-paid beneficiaries.

Agora Team
Agora Team
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