$100,000 H-1B Fee Shock: How the New Proclamation Changes Hiring Foreign Workers

1. What Is the $100,000 H-1B Proclamation?

The Proclamation, issued on September 19, 2025 (with an effective date of September 21, 2025), established a one-time, supplemental payment of $100,000 that the petitioning U.S. employer must pay for certain H-1B petitions.

• Goal: The stated goal of the Proclamation was to address alleged exploitation of the H-1B program, protect U.S. workers, and favor higher-skilled/higher-paid foreign professionals.

• Payment Requirement: The $100,000 payment must be made before the H-1B petition is filed with U.S. Citizenship and Immigration Services (USCIS) via the U.S. Treasury's website, Pay.gov. The petition must include proof of payment or an approved exception, or it will be denied

2. Who Is Affected?

• New H-1B Applicants: The rule would primarily apply to those filing initial H-1B petitions (including those selected in the lottery). It is generally not intended to apply retroactively to those already in H-1B status seeking renewal, change of employer, or extension.

• Employers: Particularly those in industries with lower prevailing wages, such as:

• Early-stage startups and tech companies.

• Universities and non-profit research organizations (though they may have exemptions).

• Consulting, marketing, and business services firms.

• Companies in lower-cost geographic regions (outside major coastal tech hubs).

3. Who/What Is NOT Subject to the $100,000 Payment?

This is the important thing to know. The proclamation is going to have some exceptions:

• Current H-1B Workers: Those already in H-1B status seeking to renew, transfer (change jobs), or extend their status.

• People who work at colleges and universities and other related non profit organizations: Companies like universities, hospitals where doctors teach and groups that do research with them usually pay their workers less money than other companies.. These places are very important for research in the United States. Workers at colleges and universities and other related non profit organizations are probably going to be treated and might not have to follow the same rules, as other workers.

• Certain "National Interest" Roles: As detailed below.

• Potential Grandfathering: Any petition filed before a specific effective date is likely exempt.

4. Not Subject to the $100,000 Payment

These things usually do not get affected:

• H-1B extensions filed inside the U.S.

• Change of status from F-1 to H-1B within the U.S.

• People who already have a H-1B visa are the ones we are talking about. The H-1B visa is something these employees already have. They do not need to get a H-1B visa because the one they have is still valid. The H-1B visa that these employees hold is the thing here.

• Petitions filed before the proclamation’s effective date

• Amendments that do not involve new entry from abroad

5. Exceptions & National Interest Waivers

The proclamation is expected to allow waivers of the $100,000 requirement for roles deemed critical to U.S. national interest. Definitions will be precise, but may include:

• Medical Professionals: Physicians, especially in underserved areas or research specialties.

• Critical Technology Workers: Those working on federally funded research or in fields critical to national security (e.g., AI, quantum computing, cybersecurity).

• Individuals with Extraordinary Ability: Those who can demonstrate sustained national or international acclaim (similar to O-1 visa standards).

6. What Employers Should Do

Employers should:

• We need to check if the people we will hire soon need to come from outside the United States. We have to see if these upcoming hires require us to look for people outside the United States to fill these positions. The upcoming hires are the ones we are talking about here. We want to know if we need to get them from, outside the United States.

• Budget carefully for potential additional costs

• Prioritize in-country candidates when possible

• Strengthen wage levels and job justifications

• Work closely with immigration counsel before filing

• Strategic planning is now more important than ever.

7. What H-1B Beneficiaries Need to Know

Timing is Critical: If you are a prospective first-time H-1B applicant, this raises the stakes significantly. Your employer must be willing and able to meet the high salary floor.

• Location & Job Title Matter Less: The national floor reduces the advantage of being in a low-cost area. Your specialized skills and the employer's ability to pay become paramount.

• Negotiation Leverage: If you possess rare, in-demand skills, you may have more leverage to negotiate a salary that meets the threshold. Be prepared to articulate your unique value.

• Have a Plan B: Discuss alternative visa options (see above) with your employer or immigration attorney. Consider whether your profile might qualify for a national interest waiver.

8. Broader Context

The one hundred thousand dollar H-1B discussion is part of a change, in United States immigration policy including:

• Increased scrutiny of work visas

• Emphasis on wage-based selection

• Tighter compliance checks

• Reduced flexibility for mass hiring models

These changes signal a move toward quality over quantity in H-1B approvals.

TIPS

For people who hire employees: when you need to pay a fee for an H-1B visa you should always use the form that is called "H-1B VISA PAYMENT TO REMOVE RESTRICTION". This is important because you have to show proof that you paid the fee when you submit the I-129 petition for the H-1B visa. Make sure you include the proof of payment for the H-1B visa, with the I-129 petition.

For Beneficiaries: If you are subject to the fee, remember that the payment is the responsibility of the petitioning U.S. employer. Good Luck