Trump\’s Executive Order Imposes Steep $100K Fee on H1-B Visas and Reforms Wage Rules

What is this Trump Executive Order About?

This executive order, issued by Donald J. Trump, is a proclamation aimed at significantly restructuring the H1-B nonimmigrant visa program. The core argument presented is that the H1-B program has been \”deliberately exploited\” to replace American workers with lower-paid, lower-skilled labor, rather than supplementing high-skilled functions as originally intended. The proclamation asserts that this alleged abuse has undermined economic and national security, particularly impacting American workers in STEM fields and leading to an \”artificially suppressed\” wage market.

The order seeks to combat these perceived abuses by making it considerably more expensive for companies to hire H1-B workers and by initiating a review of prevailing wage levels and admission priorities.

What Has Changed?

The most immediate and impactful change introduced by this proclamation is a $100,000 fee that must accompany or supplement H1-B visa petitions for workers outside the United States. This restriction on entry begins at 12:01 a.m. EDT on September 21, 2025, and is set to expire in 12 months unless extended.

Beyond the fee, the order also mandates:

• Restriction on Entry: H1-B nonimmigrants currently outside the U.S. whose petitions are not accompanied by the $100,000 payment will face restricted entry for 12 months.

• National Interest Exception: The Secretary of Homeland Security has the discretion to waive the fee if hiring H1-B workers is deemed in the national interest and poses no threat to security or welfare. This could apply to individual aliens, all aliens working for a company, or even an entire industry.

• Preventing B Visa Misuse: The Secretary of State is instructed to issue guidance to prevent the misuse of B visas by H1-B beneficiaries with employment start dates before October 1, 2026.

• Prevailing Wage Review: The Secretary of Labor is directed to initiate rulemaking to revise prevailing wage levels to align with the proclamation\’s policy goals.

• Prioritizing High-Skilled/High-Paid: The Secretary of Homeland Security is to initiate rulemaking to prioritize the admission of high-skilled and high-paid nonimmigrants.

• Compliance and Enforcement: Employers must obtain and retain documentation of the $100,000 payment, and both the Department of Homeland Security and the Department of State will verify payment and deny entry if it hasn\’t been made.

Effect on US Employers:

• Massive Cost Increase: The most significant effect is the substantial increase in the cost of hiring foreign talent. For companies relying heavily on H1-B visas, especially those in IT outsourcing, this $100,000 fee per employee will dramatically inflate operational expenses.

• Shift in Hiring Strategy: Employers will be strongly incentivized to prioritize hiring American workers or invest in training domestic talent to avoid the steep fee.

• Reduced Competitiveness for Certain Firms: Companies that have historically relied on H1-B workers for cost savings may find their business model unsustainable or less competitive.

• Potential Talent Shortages (Short-term): While the intent is to protect American jobs, some specialized roles might face temporary talent shortages if companies are unwilling or unable to pay the fee for critical skills not readily available domestically.

• Administrative Burden: Employers will have additional compliance requirements to document and ensure the $100,000 payment.

• Uncertainty for Future Planning: The 12-month duration of the restriction, with the possibility of extension, introduces uncertainty for long-term workforce planning.

• Focus on \”Best of the Best\”: The higher cost might force companies to reserve H1-B applications for only the most exceptionally skilled and high-paid individuals, aligning with the stated goal of using the program for workers unavailable in the U.S.

Effect on H1-B Workers:

• Decreased Demand and Opportunity: The $100,000 fee will undoubtedly reduce the number of H1-B visas employers are willing to sponsor, significantly decreasing job opportunities for foreign workers.

• Higher Bar for Entry: Only those with highly specialized, critical skills and potentially higher salary expectations might be considered by employers willing to absorb the cost.

• Increased Scrutiny: H1-B applicants and their roles will likely face greater scrutiny to justify the significant investment.

• Uncertainty for Those Outside the U.S.: H1-B workers currently outside the U.S. will be directly impacted by the $100,000 fee for their petitions, creating immediate barriers to entry.

• Potential for \”Brain Drain\”: Highly skilled foreign professionals might increasingly look to other countries for employment opportunities if the U.S. H1-B program becomes too costly and restrictive.

• Wage Adjustments: While the fee is on the employer, the broader policy goal of revising prevailing wages and prioritizing high-paid aliens could lead to higher wage expectations for successful H1-B candidates in the future, if the program adapts to focus on truly high-skilled and high-wage roles.

Is the $100K fee $100K per employee?

Yes, the language in Section 1(a), \”aliens whose petitions are accompanied or supplemented by a payment of a 100,000 fee is per H1-B employee/petition.