H-1B Visa 2025: Understanding the $100,000 Annual Fee and Its Implications

The H-1B visa has long been a vital pathway for skilled foreign workers to contribute to the U.S. economy, particularly in sectors like technology, healthcare, and engineering. However, recent policy changes have introduced significant shifts in the program, notably the imposition of a $100,000 annual fee for H-1B applications. This article delves into the details of this new policy and its potential impacts.

What is the H-1B Visa?

The H-1B visa is a non-immigrant visa that allows U.S. companies to employ foreign workers in specialty occupations requiring theoretical or technical expertise. To qualify, applicants typically need a bachelor’s degree or higher in a specific specialty.

Recent Policy Changes: The $100,000 Annual Fee

On September 19, 2025, President Donald Trump signed a proclamation imposing a $100,000 annual fee on H-1B visa applications. This marks a substantial increase from the previous $215 charge. The fee applies to employers seeking to sponsor foreign workers for H-1B positions, effective from 12:01 a.m. EDT on September 21, 2025.

Commerce Secretary Howard Lutnick stated that the increased cost aims to reduce the number of H-1B applications, encouraging U.S. companies to train domestic workers instead. This move is expected to significantly impact industries that heavily rely on H-1B workers, such as technology and healthcare.

Exemptions for Certain Sectors

Notably, the new fee does not apply to H-1B applicants in the healthcare and engineering sectors. This exemption is intended to ensure that essential industries continue to have access to the skilled labor they require without facing the financial burden of the new fee.

Impact on Indian IT Professionals

India’s IT industry body, Nasscom, has expressed concerns that the new fee could disrupt the operations of Indian technology services companies. The sudden implementation of this policy, with just a one-day notice, may lead to uncertainty for professionals and students, potentially increasing operational costs for companies and affecting onshore projects.

Application Process and Cap Details

The H-1B visa program operates under an annual cap system. For the fiscal year 2026, the regular cap is set at 65,000 visas, with an additional 20,000 reserved for individuals holding a U.S. master’s degree or higher. If the number of applications exceeds the cap, a lottery system is employed to randomly select petitions for processing.

Employers must first register electronically during the designated registration period, which typically begins in March. If selected in the lottery, they can then submit a complete petition for the employee.

Duration and Extensions

An H-1B visa is initially valid for three years and can be extended for an additional three years, totalling six years. In certain circumstances, such as pending green card applications, further extensions may be granted beyond the six-year limit.

Costs and Fees

Beyond the new $100,000 annual fee, employers are responsible for additional costs associated with the H-1B application process. These include:

• Basic Filing Fee (Form I-129): $460

• American Competitiveness and Workforce Improvement Act (ACWIA) Fee: $750–$1,500, depending on the size of the employer

• Fraud Prevention and Detection Fee: $500

• Premium Processing Fee (optional): $2,500 for expedited processing

Advantages of the H-1B Visa

The H-1B visa offers several benefits to both employers and employees:

• Access to a Global Talent Pool: Employers can hire specialized professionals from around the world.

• Pathway to Permanent Residency: H-1B holders may apply for a green card while working in the U.S.

• Dependents’ Benefits: Spouses and children under 21 can accompany the H-1B holder under the H-4 visa category.

Challenges and Limitations

Despite its advantages, the H-1B visa program presents several challenges:

• High Costs: The new $100,000 annual fee adds a significant financial burden on employers.

• Limited Availability: The annual cap and lottery system make it difficult for many applicants to secure a visa.

• Dependence on Employer Sponsorship: The visa holder’s status is tied to the sponsoring employer, limiting job mobility.

Conclusion

The recent changes to the H-1B visa program represent a significant shift in U.S. immigration policy, particularly concerning the employment of foreign workers in specialty occupations. While the intent is to prioritize U.S. workers and reduce reliance on foreign labor, these changes may have unintended consequences, including increased operational costs for employers and potential disruptions in industries that depend heavily on skilled foreign professionals.

As the situation evolves, it is crucial for both employers and prospective H-1B applicants to stay informed about policy developments and plan accordingly to navigate the complexities of the new regulations.