What is the U.S. H-1B Visa?
The H-1B visa is a U.S. nonimmigrant (temporary) work visa that allows U.S. employers to hire foreign nationals in “specialty occupations.” Key features:
Specialty Occupation: Usually jobs that require at least a bachelor’s degree (or equivalent) in a specialized field (engineering, computer science, medicine, architecture, business specialties, etc.).
Employer Sponsorship: The U.S. employer must file a petition (Form I-129) with U.S. Citizenship and Immigration Services (USCIS). They must also obtain a certified Labor Condition Application (LCA) from the Department of Labor.
Duration: Initially granted for up to 3 years, with possible extension to a total of 6 years (with some exceptions/extensions under special circumstances).
Cap / Lottery: There is a numerical cap on how many new H-1B visas are granted each fiscal year (65,000 regular + 20,000 for people with U.S. advanced degrees). When applications exceed the cap, a lottery (random selection) decides which petitions are processed.
Dual Intent: H-1B holders are allowed to have the intent to become permanent residents (green-card) while on H-1B status.
Dependents: Spouse and unmarried children under 21 can come under H-4 status; they may have limited work authorization depending on certain conditions.
Old Fee Regime vs New Fee (Recent Changes)
Old Fee Regime
Before the most recent changes, the cost structure for filing an H-1B petition included multiple fees, paid generally by the employer. Some of these fees included:
Base filing fee (USCIS)
Fraud prevention & detection fee
American Competitiveness & Workforce Improvement Act (ACWIA) fee
Possibly a Public Law fee (if the employer has many workers on H-1B or L1)
Premium processing (optional, for faster adjudication)
Also a lottery/registration fee (e.g., the registration for lottery)
The total would vary depending on the employer’s size, whether premium processing is used, etc. But the sum was generally in the low thousands of USD, often between US$1,700 to US$4,500 (excluding premium processing and employer-specific additions) for many standard cases.
New Fee / Recent Fee Hike
As of September 19-20, 2025, the U.S. government (Trump administration) signed a proclamation introducing a new annual fee of USD 100,000 per H-1B visa application. This fee applies to companies sponsoring H-1B workers.
Some details & clarifications:
This is a major jump compared to existing fees.
It is said that this fee is either in addition to (or replacing) certain existing fees — full details are still being clarified.
The fee hike is part of a broader immigration policy change, including “Gold Card” (a visa/permanent residency path for those who can pay $1 million), changes to prevailing wage rules, etc.
Why the Fee Increase?
Several reasons / arguments given for this hike:
Protect U.S. Workers / Wages
The administration claims that some companies hire foreign workers under H-1B at wages below what U.S. workers would get. Raising costs may force companies to hire locally or increase wages for foreign hires.Discourage Overuse / Misuse
The idea is to limit the program’s use to only “highly skilled” or high‐salary workers and to prevent firms from using H-1B purely as a cheaper labor source. The steep fee acts as a barrier.Generate Revenue / Fair Share
A signature fee may also be seen as a way to raise funds from employers who benefit heavily from foreign skilled labor. However, many legal analysts question whether all of this revenue justification is valid given that H-1B is not meant to be a revenue‐raising tool primarily.Policy Shift in Immigration Strategy
The current administration seems to focus on tightening immigration, preferring more selectivity, and pushing for higher wage floors, possibly fewer foreign skilled workers unless they are very high value.Illegal / Practical Implications
There are questions about whether such a high fee is constitutional, whether it will be challenged in courts, and how exactly it will be implemented. But from the employer/industry side, the new costs may dramatically alter decisions about hiring foreign talent.
What Exactly Are the New Costs vs Old? A Comparison
| Component | Old Typical Range / Examples | New Proposed Fee / Change |
|---|---|---|
| Base filing / petition fees + related USCIS fees | Roughly USD 1,700 – 4,500+, depending on employer size, premium processing, etc. | USD 100,000 per year per H-1B visa application (introducing this as a requirement for sponsoring companies) |
| Other fees (fraud prevention, ACWIA, etc.) | ACWIA, fraud prevention, premium processing optional, etc. | Likely still applicable, but overshadowed by massive new fee; some existing fees might be modified or subsumed over time. Details are still being worked out. |
One article points out that the new fee is higher than the annual salary of many H-1B workers, especially entry level positions. So in many cases, the fee might exceed what the employee themselves earns in a year.
Who Uses the H-1B Visa? Who It’s For / Who It Affects
Typical Users
Highly educated foreign professionals in fields like technology (software engineers, data scientists), engineering, medicine, research, academia, architectural and other specialized roles. Because the job must qualify as a “specialty occupation.”
Employers in U.S. (corporates, startups, universities, research institutes) who need skills not readily available in the U.S. labor market.
Foreign graduates or those with degrees or credentials from abroad who meet or exceed U.S. educational equivalence.
Who It Affects / Who Might Be Disadvantaged
Entry-level workers: For jobs with lower salary ranges (fresh grads, junior roles), the new fee makes it much harder for employers to justify sponsoring an H-1B. If the fee is huge compared to what the position pays, they may avoid sponsoring.
Small companies / startups: Large corporations may absorb these high fees more easily; smaller ones may struggle or reduce foreign hiring.
Workers from countries with large numbers of H-1Bs — e.g. India, China — since historically a large share of H-1Bs go to people from there. Changes will affect them more.
Those hoping to transition from student visas (OPT etc.) to H-1B: because job offers & employer willingness to sponsor may shrink.
Who Stays Benefitted / Possible Advantage
Very high‐skill, very high paying roles: If someone has a top degree, rare skills, negotiated good salary, employer might still see value.
Research institutions, universities, nonprofit research: sometimes they are exempt from caps or certain fees, or have more flexibility. But the new fee regime seems sweeping.
People whose employers can offset the cost or are willing or able to pay.
Recent Fee Hike: Details & Impacts
What was the change? As of September 19-20, 2025, a proclamation introduced a USD 100,000 annual fee on each H-1B application for sponsoring companies.
Effective date: The policy is stated to be effective from September 21, 2025 for new visa applications under the new fee structure.
Who pays: Employers sponsoring H-1B holders. It’s not a fee for the worker directly (in the sense of visa holder themselves), although in practice it may affect hiring decisions which impact the worker.
Potential Impacts
Tech giants and big companies have raised concerns; some advising current H-1B visa holders to stay in the U.S. or return before the fee takes effect.
Indian IT firms are likely to be heavily impacted because a large share of H-1Bs go to Indian nationals. Increased costs may lead companies to cut back or shift hiring strategies.
Some argue this could significantly reduce the number of H-1B applications, or push employers to hire American citizens instead (if possible), or outsource/hire remotely.
Legal challenges are likely. Some question the legality and whether the executive branch has authority to impose such fees without Congress. Implementation details (are some employers exempt? Are the fees prorated? etc.) are being watched.
Old vs New: Is There Any “Old vs New H1B Fee” History Before This Change?
Over time, there have been periodic increases in some of the USCIS/US government fees associated with H-1B filings (base petition, fraud prevention, ACWIA, public law fees, premiums) — these are incremental and relatively small compared to this new change.
What’s new here is not just a modest increase, but a huge, sweeping additional or replacement cost (USD 100,000/year) that may fundamentally alter who the H-1B program is accessible to.
Considerations / Challenges
Cost vs salary balance: If the fee is similar to, or even more than, what the employee earns, many employers may decide it isn’t worth it unless it’s a very senior / high revenue position.
Competitive disadvantage: Companies that rely heavily on foreign skilled labor may find it much more expensive, making U.S. operations less competitive vs companies elsewhere.
Talent sourcing: This could push more global talent to remain in home countries or go to other countries with more favorable immigration / hiring costs.
Policy uncertainty: Because these changes are recent, legal, regulatory and procedural details might change (courts, Congress, etc.).
Who Should Use / Consider the H-1B Visa?
You should consider H-1B if you fall into one or more of these categories:
You have a specialized skill / education (bachelor’s or higher) in a field that U.S. employers need (tech, engineering, science, medicine, etc.).
You have a job offer from a U.S. employer willing to sponsor you (i.e. file the petition) and willing to pay the fees (from the employer side).
You might want to stay in the U.S. temporarily but possibly transition later to green card (dual intent).
You are willing to navigate the lottery / cap system, or fall under cap-exempt categories (such as universities, certain research institutes, etc.).
If you are more junior, or in lower paying roles, or your future might be impacted by employer unwillingness to absorb high fees, you might also want to explore alternatives (other visas, remote work, immigration to countries with easier skilled worker visa regimes, etc.).
Outlook & What to Watch
Implementation details: Are there exemptions (e.g. small companies, non-profits, universities)? Will the fee be adjustable or phased in? Are premium processing rates/other fees modified?
Legal challenges: Possible lawsuits arguing that such a high fee is not legally authorised without Congress.
Response from industry: Will companies start hiring fewer foreign workers, paying more, raising wages, or relocating work?
Impact on immigration flows: Indian and other nationals majority current beneficiaries—what will be their decisions? More remote work? Alternative countries?
Conclusion
The H-1B visa has long been a key pathway for skilled foreign nationals to work in the U.S., especially in technology and similarly specialized sectors. However, the recent policy move to impose a USD 100,000 annual application fee marks one of the biggest shifts in decades. For many employers and workers, this could pose a serious barrier.
If you’re considering this visa for yourself (or employing someone), it’s vital to evaluate:
How senior or specialized the role is.
Whether the employer can or will bear high cost burden.
What the salary is relative to the fee.
Whether alternate options exist (other visas, other countries, remote work, etc.).
