A new presidential proclamation adds financial and logistical challenges for organizations using the H-1B program to hire foreign employees. These insights can guide your next steps.
A presidential proclamation issued on Sept. 19 restricts the entry of certain H-1B visa holders into the United States. Moving forward, employers will need to pay $100,000 for H-1B worker petitions.
U.S. Citizenship and Immigration Services (USCIS) has issued guidance to help employers understand the changes.
Effective date and duration
The proclamation took effect on Sept. 21, 2025. It will remain in place for at least a year and is subject to an extension.
Who is affected?
USCIS says new petitions for H-1B employees will be subject to a $100,000 application fee. The restriction applies to new H-1B petitions filed on or after Sept. 21, 2025.
It does not apply to the following:
- Petitions filed before Sept. 21, 2025
- Petitions that have already been approved
- Current H-1B visa holders
- Valid H-1B visa holders seeking an extension, amendment or change of employer within the U.S.
Actions to take
The human resources association SHRM recommends the following actions for organizations with H-1B employees:
- Encourage H-1B visa holders outside the country to return to the U.S. immediately.
- Advise all H-1B employees to avoid international travel until further guidance.
Background
Forbes reports that the Immigration Act of 1990 established the H-1B visa program. It allows U.S.-based companies to temporarily employ foreign employees with highly specialized knowledge and a bachelor’s degree or higher.
Employers file H-1B petitions with the Department of Labor. If the petition is approved, employees apply for a visa before entering the U.S.
Employers can apply through a lottery system. The program is capped at about 85,000 visas a year. According to the nonprofit National Foundation for American Policy, around 20% of H-1B applications are approved each year.
The maximum amount of time granted to H-1B employees is six years. However, employers can request an extension in three-year increments for eligible employees.
Further rules and reviews
The Department of Homeland Security can grant exceptions to the new restriction. An exception may be granted if an H-1B petition does not pose a risk to U.S. security and is in the national interest.
The H-1B lottery for fiscal year 2027 takes place in March 2026. Within 30 days of the next lottery, federal agencies will review the current restriction and recommend whether to extend it.
According to SHRM, the Department of Labor will begin revising prevailing wage levels and prioritizing the admission of highly skilled, highly paid nonimmigrants.
For more information
It’s essential to stay informed of new and ongoing changes. Talk to our Human Resources Consulting team for more information on how this proclamation could affect your organization.
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