Mantra Law Office has issued a travel advisory all H-1B visas holders, urging them to postpone international travel due to the policy changes introduced by the Trump administration. Out of an abundance of caution, all H-1B Nonimmigrants currently in the US should put a hold on their international travel plans until they receive further guidance. The warning comes after a new immigration proclamation was signed that directly affects foreign professionals in the US on H-1B visas.
$100,000 FEE FOR NEW H-1B PETITIONS
On September 19, 2025, President Donald Trump signed a presidential proclamation imposing a $100,000 fee on each new H-1B petition filed after September 21, 2025. The rule, which will remain in force for at least 12 months, aims to reform the visa system and also aims to “protect American jobs” and reduce what the administration calls misuse of the program.
However, the $100,000 fee does not apply to existing H-1B holders, renewals, or amendments. This proclamation/policy has caused confusion among employers and universities employing international talent. Initially, several tech companies expressed concern about disruptions to operations, fearing the fee would impact ongoing projects and staffing.
However, the Trump administration later clarified that the additional cost affects only new filed applications. The White House insists this move will ensure that the H-1B program benefits highly skilled workers and discourages companies from hiring cheap foreign labor over US citizens. Further, Department of Homeland Security plans to also revise H-1B visa distribution. If applications surpass the 85,000 annual cap, those offering higher wages or advanced roles will be prioritized, a move the administration says promotes fair pay for skilled workers.
KEY DETAILS OF THE FEE HIKE
Who it Affects: The fee applies to foreign nationals applying for new H-1B visas.
Effective Date: It became effective for petitions filed on or after September 21, 2025.
Exemptions: Petitions filed before September 21, 2025, are exempt from the fee. The fee also does not apply to renewals of existing H-1B visas.
Purpose: The fee aims to curb abuses of the H-1B system, protect American workers from being replaced by lower-paid foreign labor, and prevent the system from being used to drive down American wages.
IMPACT ON BUSINESSES
Increased Costs: The $100,000 fee is a significant upfront cost that many companies, particularly startups, may struggle to absorb.
Hiring Strategy Changes: Companies may reconsider their reliance on the H-1B program, potentially impacting their ability to hire global talent.
Potential Job Displacement: Some critics worry that the fee could lead to certain high-value work being moved overseas.
WHAT’S NEXT
Legal Challenges: The Proclamation faces near-certain legal challenges, with some organizations already filing lawsuits.
Unanswered Questions: Questions remain about how the fee will be implemented, particularly for cap-exempt employers like universities and nonprofits.
Potential Policy Changes: While the fee does not apply to renewals, it has been noted that this is a policy under discussion.
COMPETITION FOR GLOBAL TALENT
Various countries, including Canada, are competing to attract and retain global talent. For many highly educated people from abroad seeking work in the U.S., especially recent international graduates of American universities, the new visa fee might result in fewer employment opportunities. As they start to look elsewhere, Canada could be an attractive destination if immigration pathways can be provided in a timely fashion.
Research has also shown that when faced with restrictions on immigration policies to hire skilled immigrants, U.S.-based multinational companies have responded by decreasing the number of jobs they offer in the U.S. and by increasing foreign affiliate employment, particularly in India, China and Canada.
