New H-1B Visa Fee: Who's Affected, Company Reactions, and Legal Hurdles

                 In a new initiative to reshape the U.S. legal immigration process, the Trump administration has introduced a policy designed to encourage companies to hire domestically. The core of this change is a dramatic increase in the annual application fee for the H-1B visa, which is now set at $100,000.

Prioritizing American Workers

Administration officials argue that this substantial fee will compel companies to prioritize hiring American citizens. At a signing event, Commerce Secretary Howard Lutnick explained that businesses must now evaluate if a foreign applicant is valuable enough to justify the $100,000 government fee. "The company needs to decide," Lutnick stated, whether to make the payment, or they should head home and go hire an American." He added that the goal of this immigration policy is to "Hire Americans and make sure the people coming in are the top, top people."

President Trump echoed this sentiment, stating that the fee would help ensure that America gets "great workers."

Potential Industry Impact

This policy could, however, create significant challenges for U.S. industries that depend on skilled foreign workers to fill critical roles. The H-1B visa program currently allows 85,000 visas to be issued annually. Of these, 20,000 are specifically reserved for individuals who have earned advanced degrees from American universities. The steep new fee may be a major blow to companies that rely on this program to access global talent.

Clarifications for Current Visa Holders

According to White House press secretary Karoline Leavitt, the new fee is a one-time charge that applies only to new petitions. Current visa holders are exempt from this fee, including those who are traveling internationally. Leavitt specifically clarified that any current H-1B holder who is outside the United States will not be charged the $100,000 fee to reenter.

This clarification came after some initial confusion prompted major tech companies like Google and Meta to advise their visa-holding employees to reconsider international travel plans and return to the U.S. if necessary.

Who the Fee Affects

The policy exclusively targets new H-1B applications. The rule went into effect on Sunday, September 21, 2025, and is scheduled to expire on September 21, 2026, unless the administration extends it.

Impact by Occupation

An analysis of approved H-1B petitions shows a heavy concentration in a few key professional fields:

• Computer-related occupations accounted for the vast majority, representing 64% of all approvals.

• Architecture, engineering, and surveying was the next largest category, making up 10% of the total.

• Education-related jobs followed, with 6% of approved petitions.

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Impact by Industry Sector

When categorized by industry, the data shows a similar trend:

• The professional, scientific, and technical services industry was the top employer category, accounting for 48% of approved H-1B visas.

• The manufacturing industry was the second-largest, at 11%.

• The single largest detailed sector was

  custom computer programming services, which made up 25% of all approved petitions.

Corporate Impact: A Tale of Two Tiers

The policy will likely create a divide between large corporations and smaller businesses.

Major tech companies are the primary sponsors of H-1B visas.

Amazon is the largest, with over 9,000 approved petitions in fiscal year 2024. Other top sponsors include Google (5,364), Meta (4,844), Microsoft (4,725), and Apple (3,873). With a combined market capitalization of roughly $11.1 trillion, these giants are better positioned to absorb the new cost.

In contrast, small businesses and startups will likely find the $100,000 fee prohibitive, potentially limiting their ability to hire specialized foreign talent.

The Labor Market Ripple Effect

The policy could reshape the job market for different groups of workers.

While the median annual salary for an approved H-1B petition is $120,000, the high fee could discourage companies from sponsoring foreign-born workers for entry-level positions, as the cost would be a significant burden for lower-wage roles.

This could create more opportunities for recent U.S. college graduates, especially those in computer science and tech who are currently facing a difficult job market marked by layoffs. However, limiting H-1B visas does not guarantee that Americans will be hired for these roles. Historical precedent, such as the immigration slowdown during the pandemic, led to record-high job openings and a worker shortage. Economists at the time warned that such shortages could not be resolved without increasing immigration. As the U.S. Chamber of Commerce noted in 2021, businesses were forced to "turn down work because they simply can’t find the workers to do it".

Company Strategies and Legal Questions

Faced with these new restrictions, companies may shift their hiring strategies. While they will likely continue offering high salaries to attract top-tier foreign talent, they might also move hiring initiatives to other countries like

India, China, and Canada.

The policy itself faces significant legal challenges. According to Aaron Reichlin-Melnick, a senior fellow at the American Immigration Council, the president has "literally zero legal authority to impose a $100,000 fee on visas". He argues that Congress has only granted the executive branch the power to charge fees that cover the cost of processing an application, not to create a financial barrier.