$100,000 H-1B Visa Fee? A New Proclamation is Shaking Up Immigration and the American Job Market
the staff of the Ridgewood blog
Ridgewood NJ, a new proclamation from the Trump administration is set to drastically change the H-1B visa program, introducing a hefty $100,000 fee for many companies hiring temporary foreign workers. The administration’s move is based on the argument that the H-1B program, originally created to bring in highly skilled, specialized workers, has been “deliberately exploited” to replace American workers with lower-paid labor.
The Rationale Behind the Policy Change
According to the proclamation, the H-1B program has been systemically abused, particularly by information technology (IT) firms. The document highlights several key concerns:
- Wage Suppression: Some employers allegedly use the program to hire foreign workers at a significant discount, with one study cited showing a 36% discount for “entry-level” H-1B positions.
- Replacement of American Workers: The proclamation cites instances where companies have laid off thousands of American employees while simultaneously hiring thousands of H-1B workers. One example notes a software company that was approved for over 5,000 H-1B workers in FY 2025 while laying off over 15,000 employees around the same time.
- Impact on STEM Graduates: The document claims the abuse of the H-1B program has harmed recent American college graduates, noting that computer science and computer engineering majors have faced some of the highest unemployment rates in the country.
- National Security Concerns: The administration also views the H-1B program’s misuse as a national security threat. It cites investigations into H-1B-reliant outsourcing companies for activities like visa fraud and money laundering.
How the New Fee Will Work
Effective September 21, 2025, the new rules restrict the entry of H-1B specialty workers unless their petition is accompanied by a $100,000 payment. This restriction is set to last for 12 months unless it is extended.
The proclamation outlines a few key points about the new policy:
- Who is Affected: The new fee primarily applies to employers hiring H-1B workers who are currently outside the United States.
- Exceptions: The Secretary of Homeland Security has the discretion to waive the fee for an individual, company, or entire industry if it is deemed to be in the “national interest” and does not pose a threat to national security.
- Additional Rules: The proclamation also directs the Department of Labor to begin a rulemaking process to revise prevailing wage levels for H-1B workers and the Department of Homeland Security to prioritize the admission of high-skilled and high-paid aliens.
This move marks a significant shift in U.S. immigration policy and is likely to generate widespread discussion and debate across the tech industry, higher education, and political circles.
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