Major Changes to the H-1B Visa: What Employers and Foreign Workers Need to Know

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H1B VISA APPLICATION IN UNITED STATES
21 September 2025

On September 19, 2025, the U.S. President issued a groundbreaking proclamation that redefines the landscape of the H-1B visa program, a long-standing pathway for skilled foreign professionals to work in the United States. For employers, employees, and legal practitioners, this new development introduces high-stakes financial and procedural challenges and demands immediate attention.

As a leading immigration law firm serving clients across the United States, VKM Law Group breaks down what this means for you and how we can help you navigate this complex transition.

What Does the New H-1B Proclamation Say?

Effective September 21, 2025, U.S. employers seeking to hire foreign workers under the H-1B visa program must now pay a mandatory $100,000 fee per foreign worker—a sharp departure from prior regulations. This applies only to workers outside the U.S. whose petitions are filed on or after that date.

Key Highlights:

  • $100,000 fee per H-1B worker being brought from abroad.
  • Applies to petitions filed or pending on or after September 21, 2025.
  • Does not apply to:
    • Workers already inside the U.S. before September 21.
    • Petitions approved before the cutoff date.
    • H-1B changes of status, extensions, or employer changes for individuals already in the U.S.

Exceptions May Apply:

The Secretary of Homeland Security may waive the fee for employers, industries, or workers if deemed to serve the “national interest” or where no threat is posed to the U.S. However, the criteria for these exceptions remain unclear, making expert legal guidance essential.

Broader Policy Shifts to Watch

This isn’t just a financial shift—it’s a strategic pivot in U.S. immigration policy. The proclamation also directs federal agencies to:

  • Raise prevailing wage levels for H-1B workers.
  • Prioritize higher-paid, highly skilled workers in the lottery process.

This signals a policy trend toward restricting lower-wage outsourcing firms while favoring top-tier tech talent and specialized professionals.

What This Means for Employers

For most companies, the $100,000 fee is a prohibitive cost, especially for startups and mid-sized firms. Industries like IT, consulting, and engineering that traditionally rely on global talent will need to restructure hiring strategies or seek legal exemptions.

Immediate legal consultation is vital. Employers must:

  • Reevaluate their 2025–2026 hiring pipelines.
  • Consider whether alternative visa categories may apply.
  • Determine if a “national interest” waiver can be justified.

What This Means for Foreign Professionals

The new rule dramatically narrows the path for skilled professionals abroad. Unless a U.S. employer is able and willing to cover the new cost—or secure a waiver—fewer H-1B sponsorships will be available. However, if you’re already in the U.S., you may avoid the fee altogether under certain conditions.

Potential Litigation on the Horizon

It is almost certain that his Executive Order will be subject of litigation shortly. The Executive cannot impose additional fees without Congressional approval. The national security argument the proclamation made in support of these fees is tenuous. We expect a class action lawsuit filed in the next few days to obtain a nation-wide injunction preventing the implementation of this order.

How VKM Law Group Can Help

At VKM Law Group, we specialize in immigration and employment law protecting both employers and foreign nationals in an evolving legal environment. Based in New Jersey, our attorneys have deep experience handling:

  • Complex H-1B filings and compliance reviews.
  • National interest waiver applications.
  • Change of status and extension petitions.
  • Policy updates and strategic workforce planning.

The changes are already in effect and delays can jeopardize your workforce planning or visa status. Whether you’re an employer seeking clarity or a worker unsure of your next move, VKM Law Group is here to guide you through the transition.