On September 19, President Trump signed a Proclamation restricting the entry of certain H-1B workers into the United States, unless the Form I-129 (H-1B) petition was accompanied by a $100,000 fee from the employer. The restriction is effective as of September 21, and will expire in 12 months, absent an extension from the Trump Administration.

Tech giants like Microsoft, Amazon and JPMorgan immediately advised their H-1B workers to remain in the U.S. until further guidelines are provided by the Administration. But the impact of the Proclamation, titled Restriction on Entry of Certain Nonimmigrant Workers, is not as dire as many news media reports and social media posts initially reported.

To reduce panic, White House press secretary Karoline Leavitt posted on X on September 20, “This is NOT an annual, fee, but a one-time fee that applies only to the petition.” She added, “Those who already hold H-1B visas and are currently outside of the country right now will NOT be charged $100,000 to re-enter.” She further wrote, “This applies only to new visas, not renewals, and not current visa holders.”

The White House has since clarified that the fee is required for new H-1B petitions submitted after 12:01 a.m. ET Sunday, September 20, not just those in the 2026 H-1B annual lottery.

A USCIS Memorandum, dated September 20, 2025, confirms the Proclamation applies prospectively to new H-1B petitions filed on September 21 or later, including future H-1B cap petitions or petitions requesting consular processing.

The Memorandum clarifies that it does NOT apply to applicants who:

1. are the beneficiaries of pending H-1B petitions that were filed prior to September 21, 2025;

2. are the beneficiaries of currently approved H-1B petitions; or

3. already have valid, unexpired H-1B visas.

The U.S. Customs and Border Protection (CBP) issued guidance stating the Presidential Proclamation does not restrict the entry of current H-1B visa holders. H-1B employees with valid Form I-797 Approval Notices and H-1B visas may travel as normal and will not be subject to the fee requirement to re-enter the United States.

Why Did the Trump Administration Impose the $100,000 Fee?

The Administration says the H-1B program was created to bring temporary workers into the United States to perform additive, high-skilled functions, but it has been used to replace, rather than supplement, American workers with lower-paid, lower-skilled labor. They note the H-1B program largely displaces U.S. workers and suppresses wages because foreign nationals are more willing to work for lower pay.

The Proclamation states that information technology (IT) firms, in particular, have abused the H-1B program, which significantly harms American workers in computer-related fields. On average, the share of IT workers in the H-1B program grew from 32% in fiscal year 2003 to an average of over 65% in the last 5 fiscal years.

The Proclamation also notes that abuse of the H-1 B program is a national security threat. H-1B reliant outsourcing companies have been found to engage in visa fraud, conspiracy to launder money, conspiracy under the Racketeer Influenced and Corrupt Organizations Act, and other illegal activities to recruit foreign workers to the U.S.

H-1B workers must have at least a bachelor’s degree in the relevant field of study to fill a position in a specialty occupation requiring certain knowledge, skills and educational credentials. But the H-1B employer is not required to recruit U.S. workers, unless it is found to be H-1B dependent or a previous willful violator of H-1B requirements.

According to the White House, the restrictions will curb abuse of the H-1B program while allowing employers to hire the best of the best H-1B workers. It is not clear how the change will be implemented or whether it will be subject to legal challenge in federal courts. In the meantime, employers and foreign national workers may consider other visa options, such as the O-1 (Individuals with Extraordinary Ability or Achievement), L-1 (Intracompany Transferee) or TN (Canadian and Mexican citizens in specific professional occupations).