Updated Immigration News: New H-1B Proclamation and $100,000 Fee Requirement

Dear Clients,

As many of you already know, on Friday, September 19, 2025, President Trump issued a surprise Presidential Proclamation restricting entry of certain H-1B nonimmigrant workers based on the “large-scale replacement of American workers” and “systemic abuse” of the H-1B program. The Proclamation, which has created significant chaos and confusion throughout the U.S. and abroad, directs the Department of Homeland Security (DHS) and the Department of State (DOS) to implement new conditions on H-1B petitions. It should be noted that the U.S. government issues 85,000 new H-1B visas each year and renews several hundred thousand annually. In 2022 there were over 440,000 H-1B petitions or renewals. In fiscal year 2024, 71% of the H-1B petitions approved by USCIS were on behalf of nationals of India.

Key Change:
Effective September 21, 2025, all new H-1B petitions must be accompanied (or supplemented) by a $100,000 payment – a one-time fee – not annual. DOS will be required to verify receipt of this payment at visa issuance, and DHS is instructed to withhold approval for out-of-country beneficiaries without it. Also, H-1B visa holders outside the U.S. won’t be charged to re-enter the country – the fee only applies to new visa applications and not current visa holders.

Who is NOT Affected (per the Sept. 20 USCIS Director’s Guidance and Sept. 21 FAQ):
• Petitions filed before September 21, 2025
• Current H-1B employees in the U.S.
• Extensions with the same employer
• Approved petitions and valid visa holders (no travel restrictions tied to the Proclamation)

What Remains Unclear:
• Whether amendments or changes of employer will trigger the new $100,000 payment
• The mechanics of payment (how, where, proof of payment, refunds on denials/withdrawals)
• Whether universities, nonprofits, and industries of national or public interest may be exempted (the Proclamation allows DHS to grant national-interest exceptions)
• Treatment of the FY2026 H-1B cap lottery filings

What to Expect:
• The Proclamation is effective for 12 months, but may be extended
• Federal litigation is definitely anticipated challenging this significant measure
• DHS is directed to pursue rulemaking to adjust the annual H-1B allocation to prioritize higher-paid and higher-skilled petitions
• The Department of Labor has been instructed to propose rules raising prevailing wage levels
• Increased DOL enforcement activity in the H-1B program is also likely.

Recommended Employer Actions For Now:
• Consider the need for international travel with legal advice, as visa issuance practices may shift rapidly.
• Stay tuned for further updates, as USCIS and DOS release guidance clarifying payment procedures and exemptions.

We will continue to monitor this situation closely and provide timely updates as the legal and regulatory landscape evolves. However, legal challenges are definitely expected in the near future.

Sincerely,

The NawLaw Team