BREAKING: Trump Imposes $100,000 H-1B Visa Fee, U.S Entry Ban Effective 21st September 2025

President Donald Trump has enacted a sweeping proclamation that will fundamentally alter the H-1B visa program, effective September 21, 2025, at 12:01 AM EDT. The new mandate introduces an unprecedented $100,000 annual fee per visa and an immediate entry ban for non-compliant H-1B holders, marking one of the most significant overhauls to U.S. skilled worker immigration in recent history.

Also Read: If Trump doesn’t allow Indian students, US varsities will come to India: CM Revanth Reddy

Proclamation Details and Implementation

The presidential proclamation, titled “Restriction on Entry of Certain Nonimmigrant Workers,” establishes strict new conditions for H-1B employees entering or remaining in the United States. Entry will be denied unless the employer has paid the exorbitant $100,000 fee. These restrictions apply broadly to:

• New H-1B petitions: All applications submitted after September 21, 2025, will be subject to the fee.
• Visa renewals: Existing H-1B holders seeking extensions must also pay the annual fee.
• Re-entry: H-1B visa holders currently outside the U.S. will be unable to re-enter without prior payment of the fee.

This fee represents a staggering increase from the current administrative costs, which typically range from $1,000 to $1,500. Over a standard six-year H-1B period, employers could face total costs exceeding $600,000 per employee.

Immediate Impact and Travel Warnings

The announcement has triggered urgent responses from major corporations. Microsoft has already advised its H-1B and H-4 visa employees to return to the U.S. before the September 21 deadline, strongly recommending they remain in the country “for the foreseeable future.”

Immigration law firms like Fragomen have echoed these warnings, advising that “H-1B nonimmigrants with plans to travel outside the United States and reenter on or after September 21 should put their plans on hold” due to the immediate financial barrier.

Justification: National Security and Program Abuse

The Trump administration frames the H-1B changes as a measure to combat national security threats and address alleged program abuse. The proclamation states, “The abuse of the H-1B program is also a national security threat. Domestic law enforcement agencies have identified and investigated H-1B-reliant outsourcing companies for engaging in visa fraud, conspiracy to launder money… and other illicit activities.”

The administration asserts that “the large-scale replacement of American workers through systemic abuse of the program has undermined both American economic and national security.” Officials cited a significant increase in foreign STEM workers in the U.S., which more than doubled from 1.2 million to 2.5 million between 2000 and 2019, while overall STEM employment saw a comparatively smaller increase of 44.5%.

Devastating Impact on Key Industries

Technology Sector in Crisis

The policy is poised to profoundly impact the U.S. technology industry, where IT workers constitute over 65% of H-1B recipients, a substantial rise from 32% in 2003. Major tech giants face immense new costs:

• Amazon: With over 10,000 H-1B visa holders, potential annual costs could exceed $1 billion.
• Microsoft: Over 5,000 visa holders could incur annual fees upwards of $500 million.
• Meta, Apple, and Google: Each with thousands of H-1B employees, face similar multi-million dollar expenditures.

Indian IT Companies Brace for Impact

Indian IT companies, accounting for approximately 13% of all H-1B visas in FY2025, are particularly vulnerable.

• Tata Consultancy Services (TCS): Second only to Amazon in H-1B beneficiaries with over 5,500.
• Infosys: Over 2,000 visa holders.
• Wipro & HCL America: Each with more than 1,500 visa holders.

Following the announcement, stock markets reacted swiftly, with Infosys ADRs falling 3.41% and Wipro ADRs dropping 2.10%.

Legal Challenges Looming

Immigration attorneys are preparing for immediate legal battles, describing the fee structure as “akin to a ransom demand.” Bloomberg Law reports anticipate that “Trump’s $100,000 H-1B Fee Invites Immediate Legal Challenges,” with lawyers arguing the proclamation “flouts clear requirements of federal immigration law.”

The American Immigration Lawyers Association and various tech industry groups are expected to file emergency injunctions. The tight implementation timeline, with restrictions beginning in less than 48 hours, underscores the urgency of these anticipated legal actions.

Broader Economic and Sectoral Risks

Healthcare and Education Threatened

Beyond technology, critical sectors like healthcare and education, which rely heavily on H-1B visas for specialized talent, are also at severe risk:

• Healthcare: Medical professionals, researchers, and specialists could face severe shortages, impacting hospitals and research institutions.
• Higher Education: Universities depend on H-1B visas for faculty and research; the fee increase could lead to canceled projects and reduced global competitiveness.

Exceptions and Undefined Criteria

The proclamation includes provisions for case-by-case exceptions if hiring is deemed “in the national interest and does not pose a threat to U.S. security or welfare.” The Department of Homeland Security can grant these exceptions for individuals, specific companies, or entire critical industries. However, the lack of defined criteria for these exceptions introduces significant uncertainty for employers.

Revenue Generation and Program Viability

Commerce Secretary Howard Lutnick stated that “all big companies” support the new plan, though no major tech companies have publicly endorsed it. The administration intends to use the generated revenue to fund new detention centers, hire more immigration agents, and continue border wall construction.

Industry analysts warn that this policy “will effectively end the H-1B program completely,” as even highly compensated professionals may not justify an additional $100,000 government fee. The National Venture Capital Association highlights that startups securing H-1B visas have a 3.5 percentage point higher survival rate, indicating potential negative economic consequences. Research also suggests that firms denied H-1B visas face increased operational challenges and reduced innovation, potentially undermining U.S. competitiveness in critical technology sectors like AI, semiconductors, and biotechnology.

Global Talent Migration Risk

This policy may also accelerate a “brain drain,” with skilled workers potentially migrating to countries like Canada, Germany, and Australia, which offer more accessible pathways for skilled professionals. This shift could weaken the U.S.’s position in global technology leadership.

The proclamation represents the most dramatic restriction on skilled immigration in decades, with its immediate implementation expected to trigger widespread legal challenges and reshape the landscape for skilled workers and industries across the United States.