Latest H-1B Visa Rule Explained: $100,000 Entry Fee, Exceptions, and Global Impact
The U.S. has done it again—just when you thought the immigration debate couldn’t get any louder, Washington dropped a bombshell. A brand-new $100,000 fee for H-1B visa applicants has stunned the global tech world, shaken Indian IT corridors, and thrown families into panic.
The drama unfolded over the weekend. On Saturday, the US government announced the new rule. A day earlier, Commerce Secretary Howard Lutnick sent shockwaves when he said the fee would be paid annually and would apply to new visas and renewals alike. That single statement sparked chaos—companies rushed to call lawyers, employees scrambled for answers, and social media exploded.
But then came the twist: official clarifications followed. The White House later said it’s a one-time fee, not annual, and it only applies to new H-1B petitions filed after September 21, 2025. Existing visa holders and renewals? Safe, for now.
Still, the damage was done—the uncertainty has already rattled markets and workers alike. Let’s break down what this all really means.
What Changed in the H-1B Visa Policy?
On September 19, 2025, a Presidential Proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers”introduced the $100,000 fee.
The fee was initially described by Commerce Secretary Lutnick as annual, covering both new and renewing applications.
But White House officials later clarified: the fee is one-time, only for new petitions, not for renewals or current H-1B holders.
It goes into effect at 12:01 a.m. ET on September 21, 2025, and is valid for one year, unless extended.
Who Is Affected by Trump’s $100,000 H-1B Fee?
New H-1B applicants from abroad: Only those filing new petitions after the rule’s effective date are required to pay this fee.
Not affected: Current H-1B visa holders (including those temporarily outside the U.S.) and renewals are exempt. They will not need to pay to re-enter, renew, or maintain status under existing terms.
Exempt timing: Petitions filed or approved before Sept 21, 2025, are unaffected
How Is the US Justifying the $100,000 H-1B Fee?
Signing the proclamation at the White House, US President Donald Trump said the “Incentive is to hire American workers.” According to the administration, the fee is meant to:
- Protect U.S. wages by discouraging companies from hiring lower-paid foreign workers.
- Prevent exploitation of the H-1B system, where overseas labor could undercut domestic talent.
- Force companies to rethink reliance on foreign talent and prioritize hiring locally.
Beyond the fee, this move is part of a broader push by the Trump administration to reform legal immigration, strengthen enforcement, and revise prevailing wage requirements, signaling a major shift in U.S. immigration priorities.
Impact on Indian IT Professionals
India accounted for about 71% of H-1B visa approvals in 2024, making Indians the biggest beneficiaries of the program.
In absolute numbers, there were ~399,395 H-1B visas approved in 2024, of which 71% went to Indian nationals.
There are an estimated 730,000 H-1B visa holders currently in the U.S., more than 70% from India, with almost 500,000 dependents (H-4 visas) in many cases.
Indian IT stocks reacted sharply: following the announcement, Indian IT companies’ stocks came under pressure, reflecting concern from investors over the potential drop in placements in the U.S.
Global Reactions to the H-1B Policy
The Indian government called the move capable of causing “humanitarian consequences”, especially for families of H-1B holders. Imagine planning your life around a job in the U.S., only to wake up and find out the cost of entry has suddenly skyrocketed. That’s the reality thousands of Indian professionals are now facing.
Indian trade body Nasscom was equally vocal. They called the one-day notice “abrupt” and warned that this could really shake up Indian IT firms that rely heavily on U.S. clients. Projects, staffing, budgets—all could be thrown into uncertainty.
Tech companies in the US (Microsoft, Amazon, etc.) and finance firms (Goldman Sachs, JPMorgan) reportedly sent advisories to H-1B employees to avoid traveling abroad or to return to the US, due to fear of being caught outside when the new rule kicks in.
What Applicants and Employers Should Do
Applicants and their employers need to check when the petition was filed; pre-Sept 21 applications are safe under clarified rules.
Employers may need to decide whether to absorb the $100,000 cost, limit new H-1B hiring, or rely on national interest exceptions.
Individuals holding valid H-1B visas should plan travel carefully, but clarifications suggest they are not asked to rush back.
Stay alert for formal guidance from USCIS, DHS, and other agencies; legal challenges are likely, so language and implementation details matter.
Flight Fares Make Headlines After H-1B Fee Announcement
The sudden announcement of a $100,000 fee for H-1B visa holders has created unprecedented disruption at India-U.S. airports. Social media has been flooded with posts from Indian travelers sharing concerns about the impact of the new rule on flights, bookings, and travel plans.
Some reports suggest that flight fares between India and the U.S. may have surged sharply. For instance, a one-way economy ticket from New Delhi to New York, previously around ₹37,000, was being shared online as nearly ₹1.05 lakh on Saturday afternoon. By evening, only a limited number of flights appeared available for travelers trying to fly before the September 21 deadline.
While these reports are not officially confirmed, the social media buzz highlights the anxiety and scramble among H-1B applicants.
The Indian government is closely monitoring developments and engaging with airlines and stakeholders to assess potential impacts. Travelers are being advised to review bookings carefully and stay updated on official announcements.
The Bigger Picture
Trump’s new H-1B fee has created shockwaves in the U.S. immigration system, stirring a debate between protecting local jobs and bringing in skilled workers from around the world.
The high cost puts the dreams of many students, professionals, and families at risk, making their plans to live and work in the U.S. uncertain. Companies also face new challenges, trying to decide if hiring talent from abroad is still possible.
Despite these difficulties, the H-1B program remains an important bridge, connecting talented people from around the world with opportunities in America.
Students, workers, and policymakers will be watching closely as the rules take effect, knowing that today’s changes could shape the future of jobs, immigration, and the American dream.
The stakes are high, the uncertainty is real, and the world is waiting to see what happens next.
Key Questions Around the H-1B Visa Rule
- Is the fee annual or one-time?
Clarified: the fee is a one-time payment attached to the petition, not a recurring (annual) charge. - Applied to renewals or current holders?
No. Current visa holders and renewals are explicitly exempt. - What about travel / re-entry?
Those with valid H-1B visas can leave and re-enter the U.S. as usual. You do not need to pay the new fee to regain entry. - What if my application was filed before the new fee takes effect?
If your petition was filed before September 21, 2025, it is safe. No additional fee applies. - Does this affect F-1 students looking to switch to H-1B?
Yes. If filing a new H-1B petition after Sept 21, students switching from F-1 status will need to pay the fee. - Will dependents (H-4 visa holders) be affected?
No. The $100,000 fee applies only to the principal H-1B applicant. H-4 dependents are exempt. - Can employers absorb the fee or pass it to employees?
Legally, employers can choose to pay. Many companies may negotiate who bears the cost, but this is expected to create tension in hiring decisions. - Could this fee change again?
Yes. Legal challenges and political shifts could alter or revoke the rule, so it’s wise to stay updated on official USCIS guidance. - Are premium processing and other existing H-1B fees still applicable?
Yes. Other standard USCIS filing fees and premium processing fees remain separate from the $100,000 charge.
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