H1B $100K Fee Trump EO Explained: Renewals?Effective Date? Lawsuits? FAQs

On Friday, September 19th, 2025, President Trump signed a Proclamation, similar to an Executive Order(EO), that imposes a $100,000 fee for H1B visa applicants trying to enter the US from abroad. There was a press briefing from White House before that, which had some generic statements that were confusing, but with the actual proclamation text out, we have more clarity.

In this article, we will look at the background on why this proclamation or Executive Order(EO) was signed by the president, who it impacts, when it will take effect, how long it will last, what is unclear, what to expect in terms of lawsuits, and common FAQs.

Background: Abuse of the H1B Program, Loss of American Jobs

The proclamation by President Trump provides detailed information about the original goals of the H1B program and how companies have exploited it, with its impact on American workers. Below are some of the key statistics they provide on how the H1B program was abused and its impact on Americans:

• The proclamation states that mainly Information Technology(IT) firms have abused the H1B program. The share of IT workers in the H1B program went up from 32 percent in Fiscal Year 2003 to about an average of 65 percent in the last 5 years.
• It says, as per a study by the Federal Reserve Bank of New York, college grads between the ages of 22 and 27 in Computer Science & Computer Engineering related majors had the highest unemployment rates of 6.1 percent and 7.5 percent. The current US unemployment rate in August 2025 was 4.3 percent.
• It says the recent unemployment data for computer occupations went up from 1.98% in 2019 to about 3.02% in 2025.
• The proclamation also says that many American Tech Companies have done thousands of layoffs of their American workers, but at the same time, have hired many H1B workers. They do not explicitly give the names of companies. Some examples they provide are a company that laid off 15,000 employees, but hired 5,000 H1B workers. Since 2022, another company has laid off 27,000 American workers, but has over 25,000 approvals of H1B workers.
• It says that a high number of relatively low-wage H1B workers impacts American workers’ jobs and their wages, violating the integrity of the H1B program.
• The proclamation gives many other stats around wages, employment growth, the impact of jobs in science, technology, engineering, and math (STEM) fields, supporting the abuse of the H1B program, and how it is impacting Americans.

According to the proclamation, considering all these key statistics surrounding the H1B program and its abuse, the president has decided to restrict the entry of H1B workers into the United States by imposing an additional fee of $100,000.

Let’s dive into the details in the next sections

President’s Authority for Proclamation: 212(f), 215(a) of INA

As per the proclamation, President Trump is using his authority under the following:

• Section 212(f) of the Immigration and Nationality Act (INA), which is 8 U.S.C. 1182(f)
• Section 215(a) of the Immigration and Nationality Act (INA), which is 8 U.S.C. 1185(a)

Section 212(f) and 215(a) give the US President broad powers to suspend the entry of non-US citizens into the US and control their entry and exit to the US. This is mainly used during a national emergency or when the President believes there is a national threat that is not in the interest of the United States (US). In fact, INA 212(f) was used for travel bans during the COVID-19 pandemic.

The proclamation says that unrestricted entry of H1B workers to the US harms American workers and undercuts their wages, and is not in the interest of the United States. Also, abuse of the H1B program is a national security threat due to fraud, money laundering, and conspiracy.

Below are the screenshots of the actual text of the INA sections that the President uses.

Now that we have an understanding of the background and the president’s authority, let’s dive into the details of the actual restrictions from the proclamation.

$100,000 Additional Fee for New H1B Applicants

According to the proclamation by President Trump, the entry of H-1B visa applicants into the US at a port of entry (POE) is restricted. Below are the conditions of entry for H1B Visa holders:

• Only those H1B visa holders who have paid $100,000, unless they fall under the exceptions for national interest, are allowed to enter the US starting from the effective date of the proclamation, which is 12:01 EST on September 21, 2025.
• USCIS will not make any decisions on petitions submitted for H1B Applicants who are outside the US, unless they pay the $100K additional fee.
• Companies, before filing an H1B petition for anyone outside of the US, must make a payment of $100,000 to the US Government and submit the documentation to USCIS. If they do not submit the proof of payment, USCIS will not approve the H1B petition for such applicants.
• USCIS and the US Department of State, which controls entry at the US ports of entry, will coordinate and deny entry for H1B applicants whose employer has not made the $100K payment.
• There is no specific mention of H1B cap-exempt vs. cap-subject petitions, like Universities or non-profit research institutions, in the proclamation, so it applies to all types of H1B visa holders

Below is the screenshot of the key piece of text from the proclamation that talks about $100,000 fee:

H1B $100K Fee not applicable for Applicants inside the USA

The Proclamation clearly outlines that the additional fee payment of $100,000 is only applicable for applicants who are applying for H1B petitions, when they are outside of the US, or who are trying to enter the US on an H1B Visa after the effective date of the proclamation. If the H1B Applicant is inside the US, then the new $100K fee does not apply to them.

Below is the screenshot of the actual language that clearly outlines who it applies to

Not applicable for H1B renewals, Transfers, COS for Applicants inside the US

Based on the language of the proclamation, it is very clear that the new $100,000 fee does not apply to H1B applicants, who are living in the US and applying for renewals, like H1B extensions or amendments.

Also, we can safely assume that it does not apply to H1B transfers or other visa holders who are planning to do a Change of Status(COS) to an H1B Visa while living in the US. This includes F1 Students or H4 visa holders, and others who applied for an H1B visa for the first time or second time and are doing a Change of Status to an H1B Visa.

National Interest Exceptions for certain H1B Visa holders

The Secretary of Homeland Security, based on discretion, can give exceptions to certain H1B holders, whose employment is of US national interest.

If the Secretary of Homeland Security grants them an exception, the restrictions in the proclamation will not apply to such applicants, who work in a company or industry that does not pose a threat to the security of the United States and of national interest.

There is no clear guidance provided in the proclamation on how to determine an applicant, company, or Industry as being of national interest. In the past, during the COVID-19 pandemic era, there was guidance given by the US Department of State. You can read more at National Interest Exceptions for US Visa Process.

Change H1B Prevailing Wage levels, H1B Lottery.

The proclamation directs the US Department of Labor to start a federal rulemaking process to revise the H1B prevailing wage levels to be in line with the proclamation’s goals. Currently, there are four H-1 B prevailing wage levels that encompass the below-listed percentiles for wages. You can check H1B Prevailing Wage Levels by SOC Code.

In the past, the Trump Administration, during its first term, tried to change the prevailing wage levels, which never made it. You can read more at H1B Prevailing Wage Changes Final Rule from 2021

Additionally, the proclamation instructs the Department of Homeland Security (DHS) to conduct rulemaking to prioritize the admission of H1B workers who are expected to be highly paid. Essentially, this translates to the implementation of weighted selection for the H-1 B Lottery process, which has already been cleared by the Office of Management and Budget (OMB) and is awaiting publication in the Federal Register for public comment.

Guidance to avoid misuse of B1/B2 Visa by H1B Visa holders

The proclamation also has a clause that clearly states that the US Department of State will give necessary guidance for anyone who has an H1B Visa petition approved, not to misuse the B1/B2 visa, if they have one. Essentially, they are saying that anyone with a B1/B2 visa should not try to enter the US and then apply for a Change of Status to H1B.

They also want people with approved H1B petitions not to use B1/B2 as a temporary measure to get their work done in the US for 6 months, as they cannot enter on an H1B Visa. So, if you plan to travel to the US on a B1/B2 visa with an approved H1B visa petition, you must be cautious, as this can raise a flag at the port of entry, even if you have no intention of doing so.

H1B $100K Fee for Returning H1B Visa Holders is Not Clear

What is not clear from the proclamation is whether the $100K additioanl fee applies to returning H1B Visa holders, if they already have a valid H1B Visa stamp.

The scenario is that if you are in the US working on an H1B Visa and have a valid visa. Now, if you plan to exit the US and try to re-enter the US at a port of entry with a valid H1B Visa, then we do not know if you would need to pay the $100,000 fee. We need to wait for additional clarification from the US Department of State on this. Hence, if you have a travel plan to enter the US, beware of the situation and plan accordingly.

Effective Date, Expiration of Proclamation

Below are the details of the effective date and expiration:

• Effective Date: September 21st, 2025, 12:01 EST.
• Expiration Date: September 20th, 2026, 11:59 PM EST. The proclamation expires 12 months after its effective date.
• Extension Option: As per the proclamation, 30 days after the H1B Lottery of the H1B Visa 2027 Season, the Secretary of State, Attorney General, and Secretary of Labor need to jointly give a recommendation to the President if an extension or renewal of the proclamation is needed.

Lawsuits on the H1B $100K additional fee Proclamation? Chances?

Many companies, universities, and non-profit research institutions heavily use the H1B Program to offset the shortage of high-skilled labor. This proclamation will have a huge impact on the functioning of many of these organizations.

We can expect to see lawsuits against the $100,000 additional fee for new H1B applicants entering the US. Many H1B advocacy groups are likely to work over the weekend and request an injunction of some sort to stop this temporarily.

The chances of the lawsuits being successful in removing the $100,000 fee for new H1B holders entering the US are mixed. In the past, lawsuits challenging the 212(f) and 215(a) during the COVID-19 pandemic were in favor of the president, and the courts upheld the travel ban that was implemented back then.

Now, it is going to be very tricky how the facts are presented and interpreted by the government, as the president has broad authority. We will keep you posted on the same on the blog, stay tuned.

Common FAQs

References: Official Proclamation Links

• Official Proclamation: Restriction on Entry of Certain Nonimmigrant Workers
• Fact Sheet: Trump Suspends Entry of Certain Nonimmigrant Workers

What do you think of the Proclamation? How would it impact? Share your thoughts in the comments section below.