On September 19, 2025, President Trump signed a proclamation upending the pricing structure for H-1B visas.  Specifically, the proclamation states some employers:

“deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor.  The large-scale replacement of American workers through systemic abuse of the program has undermined both our economic and national security.  Some employers, using practices now widely adopted by entire sectors, have abused the H-1B statute and its regulations to artificially suppress wages, resulting in a disadvantageous labor market for American citizens, while at the same time making it more difficult to attract and retain the highest skilled subset of temporary workers, with the largest impact seen in critical science, technology, engineering, and math (STEM) fields.”

Yearly, there is a lottery for 65,000 slots and 20,000 additional slots for Master level and above and generally there were about 100,000 to 200,000 applications submitted. However, in the Biden administration, they were seeing over 800,000 applications submitted, many for the same applicant by interrelated companies.

The proclamation is a culmination of a number of efforts to deal with the H-1B abuse by employers that different administrations from Bush II to Biden tried to remedy. For example, President Obama tried to level the salary by requiring higher salary levels similar that what was paid in Silicon Valley than in the location the H-1B would work. It was found the employers were using locations to keep salary levels down below market rates. The median salary for computer-related occupations, which accounted for the bulk of H-1B visas in 2024 per Department of Homeland Security (DHS), was $101,000 for those who had their visas approved for these jobs for the first time and $135,000 for those who have been working in their fields in the U.S. for longer.

83% of the H-1B holders are primarily from two countries, India (70%) and China (12%), according to data from the 2024 cycle from the Department of Homeland Security and U.S. Citizenship and Immigration Services. Tata and Cognizant, tech consultancy companies, employ the largest share of workers on such visas, but manufacturers, financial institutions, and universities also import skilled workers from other countries. Tech giants Microsoft, Google, Amazon, and Meta are among the top employers of workers with H-1B visas.

So, what does the proclamation do?  The proclamation sets a $100,000 price tag on the entry of aliens as nonimmigrants through the H-1B provisions of the INA, for a 12-month period after the proclamation’s effective date. It does not apply to any previously issued H-1B visas or any petitions submitted prior to 12:01 a.m. EDT on Sept. 21, 2025. It also does not change any payments or fees required to be submitted in connection with any H-1B renewals.  Per the FAQs, it does not prevent any holder of a current H-1B visa from traveling in and out of the United States.

The proclamation notes that the fee is a one-time fee on submission of a new H-1B petition. It is unclear whether it is only for those currently outside the U.S. who win the lottery.  However, to be on the safe side, many employers of H-1B holders were requiring current H-1B employees who were traveling overseas to immediately return.  Further, it may not apply to students who are in the U.S. and may be in the OPT program, who win the H-1B lottery, but it’s unclear if it applies to job changes.

It is also unclear whether the fee will be imposed on all jobs or just certain jobs, like IT, as they are the majority of the H-1B holders or on H-1B renewals.

In addition,  The Department of Homeland Security (DHS) has provided an advanced copy of a notice of proposed rulemaking (“NPRM”) to amend the H-1B visa selection process, implementing a weighted selection system which aims to favor higher-skilled (and higher-paid) applicants.  The proposed rules were published on September 24 allowing for a 30-day comment period.  Final regulations will be out by end of year or early next year. It is not yet known whether the new system could be in place for the upcoming H-1B cap season (Fiscal Year (FY) 2027).

The new system would allow for individuals being paid higher wages to be entered into the selection pool more times than individuals being paid lower wages as follows:

• Level IV Wages = 4 entries in selection pool
• Level III Wages = 3 entries in selection pool
• Level II Wages = 2 entries in selection pool
• Level I Wages = 1 entries in selection pool

The probability of being selected for wage level I is projected to be as follows:

• Level 1 Wages = 48% decrease
• Level 2 Wages = 3% increase
• Level 3 Wages = 55% increase
• Level 4 Wages = 107% increase

The new process will favor higher wage levels, with the odds of selection increasing along with a beneficiary’s Occupational Employment and Wage Statistics (OEWS) wage level. The proposed rule makes it clear that it is the OEWS wage level associated with the wage being offered to the prospective H-1B employee that determines the number of entries in the selection pool and acknowledges that some employers may offer higher wages to certain foreign nationals to stay competitive in the H-1B process. Such wages need not match the skill level, as they may reflect the beneficiary’s unique value to the employer. Each unique beneficiary would only be counted once toward its numerical allocation projections regardless of how many registrations a beneficiary submits or how many times the beneficiary is entered into the lottery.

Finally, the Department of Labor (DOL) is getting involved. The Department of Labor announced the launch of “Project Firewall,” an H-1B enforcement initiative. Under the initiative, the DOL plans to investigate employers in order to maximize compliance with the H-1B program. These “Secretary-certified investigations,” along with other H-1B related investigations, could result in employers owing back wages to affected workers, as well as civil money penalties and/or debarment from future use of the H-1B program.  Therefore, it is incumbent that employers should work with immigration counsel to audit their programs.

Source: Washington Post 9/24/25, CCH 9/24/25, Diraimondo and Schroeder LLP 9/23/25, HR Dive 9/23/25