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A $100,000 Visa Hike

On September 19, the Trump Administration announced that it would protect American jobs by suspending the entry of certain nonimmigrant alien workers, levying a $100,000 payment on certain H-1B workers, a huge increase from the previous fee of $215. The change takes effect at 12:01 a.m. ET on Sunday, 21 September, and is scheduled to expire after a year, though it could be extended.

The executive order created fear and confusion as H1B visa holders and future applicants from the Indian diaspora scrambled to clarify who was in the crosshairs of the new order, how, and when it would impact them. More than 70% of the most skilled visas issued by the H-1B program go to workers from India.

The fee hike would be required to accompany or supplement H-1B petitions for new applications by employers, aiming to restrict entry into the United States of certain H-1B aliens as nonimmigrant workers to curb abuses that displace U.S. workers.

A White House Statement

According to a statement released by the White House on September 20, the executive order restricts entry for aliens as nonimmigrants to perform services in specialty occupations in the H-1B program unless their petition is accompanied by a $100,000 payment.

It directs the Secretary of Homeland Security to restrict approvals for petitions from aliens that are currently outside the United States that are not accompanied by payment, and allows case-by-case exemptions if in the national interest.

The order requires employers to retain documentation of payment remittance, with the Secretary of State verifying payment during the petition process and the Departments of State and Homeland Security denying entry for non-payment for the relevant aliens and taking other relevant steps needed to implement the Proclamation.

It requires the Departments of Labor and Homeland Security to issue joint guidance for verification, enforcement, audits, and penalties.

The order directs the Secretary of Labor to initiate rulemaking to revise the prevailing wage levels for the H-1B program and directs the Secretary of Homeland Security to initiate rulemaking to prioritize high-skilled, high-paid H-1B workers.

Prioritizing American workers

The statement added that American workers are being replaced with lower-paid foreign labor, with the share of IT workers with H-1B visas rising from 32% in FY 2003 to over 65% in recent years. It claimed that American companies are laying off their American technology workers and seemingly replacing them with H-1B workers. According to the statement, one company was approved for 5,189 H-1B workers in FY 2025, while laying off roughly 16,000 U.S. employees this year.

As part of its program to prioritize American workers, the administration is imposing higher costs on companies seeking to use the H-1B program to address the program’s abuse and prevent wage undercutting.

Since the announcement, immigration lawyers and advocates have launched webinars and disseminated information to clarify who will be affected by the announcement and how. Companies have advised their H-1B employees not to travel outside the United States and to exercise caution when traveling internationally.

The Fee and the Facts

According to White House spokesperson Karoline Leavitt, the fee that takes effect on Sunday, September 21, will apply only to new H-1B applicants and will be levied per petition; it will not be applied to existing visa holders re-entering the country. On X, Leavitt clarified that this is NOT an annual fee but a one-time fee that applies only to the petition by a company to bring a skilled worker from another country into the United States.

She added that current H-1B visa holders who are currently outside of the country will not be charged $100,000 to re-enter the United States. The post clarified that H-1B visa holders can leave and re-enter the country as they normally would and that the new fee would only apply in the next H-1B lottery round and not to current visa holders or renewals.

“H-1B visa holders can leave and re-enter the country to the same extent as they normally would; whatever ability they have to do that is not impacted by yesterday’s proclamation,” wrote Leavitt. “This applies only to new visas, not renewals, and not current visa holders.”

Advice & Resources

In an email to India Currents, immigration attorney Sweta Khandelwal confirmed that the policy applies only to individuals outside the U.S. at the time of entry; current H-1B holders inside the U.S. are not directly covered, but international travel may be impacted and is not recommended for current H-1B workers.  The policy will remain in effect for 12 months (through September 21, 2026), unless it is extended.

She clarified that employers must document the $100,000 payment and provide proof during the petition process. The Departments of State and Homeland Security will coordinate to ensure that visas and entry are refused if the required payment is not made.

However, at this time, it’s not clear how the Department of State will accept the payment fee even if the employer is willing to pay the fee.

The Departments of Homeland Security, State, and Labor are expected to issue detailed guidance and initiate rulemaking on wage levels and prioritization standards. It is expected that this rule will be challenged as early as Monday, 22nd September 2025, added Khandelwal.

The Foundation for India and Indian Diasporic Studies (FIIDS) will host an online event with CPA and Attorney Neeraj Bhatia to discuss the changes and impact of the new visa fee on September 22, at 9 pm EST (6 pm PST).

To register for the session: http://tiny.cc/FIIDS-Online-RSVP