The $100K H-1B Fee: How the New Rule Is Reshaping the Visa Program

The Presidential Proclamation signed on September 19, 2025 reshaped the H-1B program by introducing a flat fee of $100,000 per new petition. The measure took effect at 12:01 a.m. EDT on September 21, 2025, and applies to both cap-subject petitions and new cap-exempt filings. On September 20, 2025, U.S. Citizenship and Immigration Services (USCIS) issued a memorandum clarifying some questions, but key points remain unresolved.

The impact goes far beyond an additional line in a budget. Large corporations may absorb the fee; for startups, universities, nonprofits, and small and midsize businesses, it may make H-1B hiring economically unfeasible. As of April 2026, the rule continues to be the subject of litigation and regulatory review.

What the Proclamation Requires

The text, titled Restriction on Entry of Certain Nonimmigrant Workers, requires that every new H-1B petition filed after 12:01 a.m. EDT on September 21, 2025 include a payment of $100,000 to be processed. The fee is a one-time charge per petition, not annual — a clarification confirmed by the White House press secretary.

The rule applies to:

• Cap-subject petitions, including the FY 2027 H-1B lottery
• New cap-exempt petitions filed after the effective date
• Employers of any size, unless granted a national-interest exemption on a case-by-case basis

The proclamation does not affect current H-1B holders, extensions, or employer transfers. As of April 2026, there is no clear guidance on whether the fee is refundable if a petition is denied or withdrawn.

Who Pays the Fee

The fee must be paid by the sponsoring employer. U.S. labor regulations prohibit passing this cost on to the H-1B worker, under penalty of violating the obligations of the Labor Condition Application filed with the Department of Labor (DOL).

Universities, public hospitals, and nonprofit research organizations — categories historically exempt from the cap — are awaiting specific USCIS guidance on whether they are also subject to the new fee. The proclamation provides for national-interest exceptions, but the application procedure has not yet been formalized in regulation.

Impact on the H-1B Lottery

The FY 2026 lottery received approximately 343,981 eligible registrations, a significant drop from the 758,994 in FY 2024 — a reflection of the anti-fraud measures USCIS implemented in the previous cycle. The new fee, applied at the petition stage (not during initial registration), is likely to deepen that decline.

Industry estimates project an additional reduction of up to 50% in registrations for the FY 2027 lottery, particularly among small employers that historically submit high volumes of applications. Since initial registration still carries a nominal cost, companies may still register, but will think twice before advancing to a full $100,000 petition.

The likely effect is fewer speculative petitions and greater selectivity: employers will tend to prioritize strategic profiles such as AI engineers, biotech researchers, and semiconductor specialists, rather than submitting dozens of candidates to dilute lottery risk.

Prevailing Wage Increases

The policy also directs the Department of Labor to raise the prevailing wage levels used to validate H-1B, PERM, EB-2, and EB-3 petitions. This increases not only the filing cost, but the permanent operational cost of employing a foreign worker.

Combined with the $100,000 fee, higher prevailing wages change the financial equation for international hiring. Companies will need to justify significantly greater per-hire costs internally, which tends to concentrate the program around critical, well-compensated roles.

Alternatives: L-1 and O-1 Take Center Stage

With the H-1B becoming more expensive, the L-1 and O-1 visas are returning to the center of corporate mobility planning.

L-1: Intracompany Transfer

The L-1 allows the transfer of managers, executives (L-1A), or employees with specialized knowledge (L-1B) from a foreign affiliate to a U.S. office. Key advantages:

• Not subject to the lottery or an annual cap
• Predictable pathway for multinational companies
• L-1A can serve as a natural bridge to the EB-1C green card, with no PERM requirement

Limitations: requires a qualifying relationship with a foreign office and at least one year of prior overseas employment within the last three years. It does not apply to new hires.

O-1: Extraordinary Ability

The O-1 is for individuals with extraordinary ability in science, arts, education, business, or athletics (O-1A), or in the arts and entertainment industry (O-1B). It has no cap and no lottery.

The bar is high: applicants must demonstrate sustained recognition through awards, publications, citations, judging roles, above-average compensation, and original contributions to their field. It serves a narrow profile, but eliminates the H-1B’s waiting line and financial ceiling.

Risks for Universities and Startups

The most critical secondary effect falls on the innovation ecosystem. American universities partly sell the promise of post-graduation employment as a justification for the high cost of higher education. If the H-1B pathway becomes financially blocked for most employers, international students may shift to programs in Canada, Germany, the United Kingdom, and Australia — countries with more predictable post-graduation pathways.

Startups and midsize companies face the sharpest dilemma. In many cases, the fee equals the annual salary of a mid-level engineer. For early-stage companies, the cost becomes prohibitive, shifting the competition for talent toward players with greater financial capacity.

Litigation and Regulatory Landscape

The proclamation faces active legal challenges as of April 2026. Core arguments include:

• Executive overreach into matters governed by the Immigration and Nationality Act
• Conflict with the fee regime established by USCIS through formal rulemaking
• Failure to comply with notice-and-comment requirements under the Administrative Procedure Act

Preliminary injunctions from federal courts may suspend or limit enforcement of the fee while the merits are decided. Employers and applicants should monitor USCIS bulletins and federal circuit court decisions before making long-term strategic decisions.

What to Do Now

For employers that rely on the H-1B, the recommendation is to triple down on planning:

• Map current talent with eligibility for L-1, O-1, or EB-1 and initiate parallel processes
• Evaluate hiring professionals already in H-1B status (extensions and transfers are not subject to the new fee)
• Strengthen documentation for national-interest exception requests, especially in critical areas such as healthcare, defense, and digital infrastructure
• Track the FY 2027 calendar with a realistic read on post-fee odds

For foreign professionals, it is worth reviewing your profile against O-1 criteria and considering alternative pathways such as the EB-2 NIW, which requires no job offer or sponsor. The reshaping of the H-1B redesigns the professional gateway into the United States — and alternatives that were once secondary have moved to the center of the planning process.

Victoria Harper

Editor-in-Chief

Meet the author

Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.