The Trump administration’s new H-1B proclamation imposes a $100,000 application fee, increases wage requirements, and raises scrutiny on skilled worker visas.

President Donald Trump has issued a proclamation introducing a $100,000 application fee for H-1B visas, effective September 21, 2025, marking one of the most significant changes to the skilled worker program in decades. Alongside this, the Department of Labor (DOL) is instructed to raise prevailing wage levels to prevent H-1B workers from being employed at below-market salaries compared to U.S. workers. Together, these changes constitute a major overhaul of a visa program critical for hiring talent in technology, engineering, and healthcare.

Key Changes:

• $100,000 Fee: Employers must pay a one-time fee for each H-1B petition. It remains unclear whether this adds to or replaces existing fees.
• Higher Wage Standards: The DOL will increase salary requirements for H-1B workers, further raising costs for employers.
• Increased Scrutiny: The administration aims to protect U.S. workers and reduce misuse of the H-1B system.

Scope and Applicability:

• The fee applies to new H-1B petitions filed on behalf of foreign nationals outside the U.S.
• Current H-1B holders in the U.S. are largely unaffected.
• Guidance on whether the fee applies to extensions, amendments, or change-of-employer applications is still pending.

Implications for Employers:

• Companies may face substantial cost increases, potentially exceeding $1 million annually for organizations sponsoring multiple H-1B workers.
• HR and compliance teams will need to adjust budgets, wage packages, and filing processes.
• Labor gaps and reduced workforce diversity may occur, particularly affecting STEM sectors.
• Some businesses may turn to automation, offshoring, or domestic upskilling programs to fill talent gaps.

Impact on International Professionals:

• The $100,000 fee could make H-1B visas inaccessible for early-career workers or those in lower-salary roles.
• Students on OPT seeking H-1B transition may encounter a highly selective job market.

Broader Context:
While the administration argues that the policy will safeguard U.S. workers and raise wages, critics warn it could limit access to international talent, sideline startups, and reduce the U.S.’s global innovation leadership. Xiao Wang, CEO of Boundless, noted that these changes may weaken the U.S.’s appeal as a top destination for skilled professionals.

Alternatives and Strategic Approaches:
Companies are exploring alternative visa options, such as O-1 or EB-1A visas, which bypass the H-1B lottery and offer pathways to permanent residency, though they require greater initial investment.

Looking Ahead:
The new policy is expected to face legal challenges, as visa fee changes typically require formal legislative or rulemaking processes. If enacted, the $100,000 H-1B fee will significantly reshape U.S. employment immigration, affecting businesses, workers, and the country’s competitiveness in global talent markets.