Jai Siya Ram

What’s Announced

1. $100,000 Annual Fee
   • President Trump has issued a proclamation that will require a $100,000 annual fee for companies applying for (or renewing) H-1B visa petitions for foreign workers.
   • This fee applies for each year that the H-1B visa is in force.
2. Why This Change
   • The administration says the move is intended to curb abuse of the H-1B program, where companies allegedly use it to hire cheaper foreign labor, sometimes replacing or suppressing wages of U.S. workers.
   • Also aims to limit H-1B use to those with more “rareified skill sets,” presumably higher wages or very specialized roles.
3. Implemented by Proclamation / Executive Order
   • It’s done by presidential proclamation (i.e. executive action by Trump) rather than new legislation.
   • Also includes a “Restriction on Entry of Certain Nonimmigrant Workers” directive: H-1B petitions for workers outside the U.S. must include the $100,000 fee.
4. Other Linked Measures
   • Along with the fee, the administration is raising wage / prevailing wage requirements and prioritizing higher-paid or higher-skilled applicants.
   • There are also “case-by-case exemptions” allowed, if deemed to be in the national interest.

Who Is Affected

• Employers / companies sponsoring H-1B workers: They will need to pay the new fee for each such worker, each year. This particularly impacts tech firms, corporations that hire large numbers of foreign skilled labor.
• Foreign skilled workers (especially those from India, China, etc.): Their ability to be sponsored may become more limited; costs will be passed on in some way.
• Smaller firms / startups are likely more impacted due to cost burden. Big tech may absorb but may also raise wages or shift hiring strategies.

Effects & Implications

1. Dramatic Cost Increase
   • Current fees for H-1B are in the hundreds / low thousands (registration fees, petition fees, etc.). A jump to $100,000/year is massive and would make many existing practices economically unviable.
2. Potential Reduction in Use of H-1B
   • Companies may hire fewer H-1B workers, or only those whose roles justify the cost. Lower-level or borderline cases may be dropped.
3. Pressure on U.S. Tech / Innovation
   • Critics argue that this could discourage foreign talent, hamper innovation, and lead companies to move operations abroad. The U.S. competitiveness in STEM fields could suffer.
4. Legal / Constitutional Questions
   • Whether the executive has the authority to impose such fees. Some legal analysts say this might be challenged in court because Congress defines the scope of visa laws.
5. Effect on Global Talent Mobility
   • Many foreign-nationals may reconsider working in the U.S., or delay/avoid H-1B sponsorship due to high cost. India, as a major source country for H-1B workers, is especially impacted.

What Is Still Unclear or TBD

• Exact implementation details: how “annual fee” will be calculated, when it takes effect, whether it applies to renewals or just new visas, how exemptions will work.
• Effective date: Some reports say provisions begin Sept 21, 2025; others suggest parts of the order may require regulatory steps.
• Scope of “specialty occupations” affected: whether only tech/IT firms or broader fields (engineering, medicine, research) will be hit.
• Legal viability: many expect lawsuits from industry, tech associations, educational institutions.
• Impact on U.S. economy vs foreign visa holders: how businesses adjust, whether costs are passed to consumers or wages change, or whether companies shift work overseas.