Introduction
President Trump’s new $100,000 H1B filing fee, announced on September 19, 2025, applies to all new H1B petitions filed after September 21, 2025. The H1B visa typically requires applicants to hold at least a bachelor’s degree and possess specialized skills in their field. This policy was introduced by the Trump administration. It does not apply to renewals or existing H1B holders. The new fee does not impact current holders or existing holders, who may continue to travel and work in the U.S. under their current status. According to JPMorgan economists, the policy could result in 5,500 fewer work authorizations per month — nearly 66,000 fewer annually.
The fee represents the largest single cost increase in the history of U.S. immigration and is already sparking lawsuits, lobbying, and warnings from economists that it could undermine innovation, startup creation, and long-term competitiveness.
What Is Trump’s New H1B $100,000 Fee?
The filing fee stems from a Trump immigration executive order, introduced as a White House proclamation, issued on September 19, 2025. According to U.S. Citizenship and Immigration Services (USCIS), the rule applies only to new petitions filed after September 21, 2025, with the deadline based on eastern daylight time.
Key Features:
- $100,000 filing fee per petition
- Applies only to new filings
- One-time fee (not annual)
- Exemptions possible for physicians and certain “national interest” roles, including positions critical to national security (Economic Times)
- Does not apply to existing H1B holders, renewals, or pending petitions
For comparison, H1B fees before this order ranged from $1,500 to $4,000 depending on employer size and type of petition.
Immediate Employer Costs and Hiring Shifts
Large Corporations vs. Startups
Large tech firms such as Google and Microsoft can technically absorb the fee. However, the tech industry and tech sector are especially impacted, as they rely heavily on H1B talent to fill critical roles. Tech workers are among those most affected by the new fee, which could significantly alter hiring practices and workforce composition. But JPMorgan economists project a sharp reduction in petitions anyway, as even wealthy firms re-evaluate ROI.
Startups and small businesses will face devastating effects. Venture capitalists and economists warn the fee creates an insurmountable barrier for young firms that depend on global engineering talent.
“High-growth startups depend on H1B workers. A $100,000 filing fee is a near-total barrier to entry for small firms.” — Brookings Institution
Outsourcing & Consulting Firms
Outsourcing giants such as Infosys and Tata Consultancy, historically among the top H1B users, may scale back operations in the U.S. The Government Accountability Office has long tracked concentration of filings among a handful of firms. Permitting companies to use the H1B program without sufficient oversight has led to situations where the system is deliberately exploited, resulting in systemic abuse of the visa program. With the new fee, many consulting contracts will shift offshore.
Hiring Freezes & Offshoring
Reuters reports that financial services firms—heavily reliant on H1Bs for quantitative analysts and programmers—are bracing for outsized impacts.
Economist Jeremy Goldman warns:
“In the short term, Washington may collect a windfall; in the long term, the U.S. risks taxing away its innovation edge, trading dynamism for short-sighted protectionism.”
(Reuters)
Impact on Immigrant Workers
Deterrence Effect on Applicants
The $100,000 H1B fee is expected to deter thousands of skilled immigrants from even applying.
- Business Insider: 66,000 fewer authorizations annually
- India Today: up to 140,000 lost job opportunities if fee is fully enforced
This new fee is also expected to have a chilling effect on both employers and potential applicants, discouraging them from pursuing or maintaining H-1B visas.
Economist Loujaina Abdelwahed of Revelio Labs cautioned:
“Effectively equivalent to dismantling the H-1B system, potentially eliminating up to 140,000 new jobs per year in U.S. companies that depend on skilled foreign talent.”
Barriers for Foreign Students
Top universities like MIT and Stanford risk losing their global edge if international students see no viable path to H1B employment. This could also mean the U.S. may lose its ability to attract highly skilled foreign workers and the best temporary foreign workers from around the world.
Wage Pressure and Labor Market Consequences
According to Peterson Institute for International Economics (PIIE), increased H1B flows in U.S. cities raised college-educated native wages by 7–8% and non-college wages by 3–4%. Restricting visas could reverse those wage benefits.
However, abuse of the H1B program has also contributed to higher unemployment rates among American workers, particularly in computer science and other STEM fields. Employers have sometimes used the program to hire lower paid, entry level, or lower skilled labor, which can suppress wages and displace domestic workers.
Broader Economic Consequences
Effects on U.S. Competitiveness and Innovation
A National Bureau of Economic Research (NBER) study found that H1B immigrants contribute up to one-third of U.S. innovation output. With fewer workers entering, that innovation pipeline shrinks.
The Guardian reported that Berenberg Bank cut U.S. growth forecasts from 2% to 1.5% in response to the policy, citing reduced labor supply.
Ripple Effects on Regional Economies
Cities like Austin, Boston, and San Jose—heavily reliant on H1B-driven innovation—face potential GDP contractions, fewer startups, and slower real estate markets.
Impact on Entrepreneurship
H1B workers have founded firms like Google and Tesla. Economists Michael Clemens and Giovanni Peri argue that high-skill immigration is directly tied to U.S. startup formation. As PIIE notes, firms that win the H1B lottery produce 27% more output than those that lose.
Historical and Global Comparisons
Past U.S. Immigration Fees
The largest past increases (e.g., the $4,000 fee in 2015 targeting high-volume filers) pale in comparison to Trump’s $100,000 levy.
Global Competitor Costs
- Canada: ~$1,000 CAD Global Talent Stream
- UK: £1,000–2,000 Skilled Worker visa
- U.S.: $100,000 — now the most expensive skilled worker visa in the world
Risk of Talent Flight
Pew Research surveys show rising immigrant preference for Canada and Europe. Policies like this accelerate brain drain.
Legal and Political Reactions
Lawsuits in Motion
Cato Institute analyst David Bier argues the fee may violate the Administrative Procedure Act and effectively “end the H1B visa category.”
Business Pushback
- Jamie Dimon (JPMorgan CEO): called the fee “out of left field” (Business Insider)
- Jensen Huang (NVIDIA CEO): warned the U.S. risks losing AI leadership (Investopedia)
- U.S. Chamber of Commerce: preparing legal and legislative challenges
Political Framing
The White House frames the policy as a protectionist measure, while economists broadly describe it as a tax on innovation.
Projections and Data Models
H1B Filings Over Time
Line graph showing projected drop in filings after the $100K fee takes effect.
Employer Cost Breakdown
Bar chart illustrating total filing costs for small, medium, and large employers.
Industry Exposure
Pie chart showing which industries are most exposed to the new fee.
What Employers and Workers Should Do Now
Adaptation Strategies
- Prioritize critical roles and budget accordingly
- Explore remote/offshore teams
- Join industry litigation efforts
Alternatives to H1B
- L-1 visas for intracompany transfers
- O-1 visas for extraordinary ability
- TN visas for Canadian and Mexican professionals
Preparing for Litigation Outcomes
Monitor USCIS Newsroom and industry associations for developments.
Expert Commentary
Economist Giovanni Peri (UC Davis):
“The U.S. risks losing its competitive edge. Talent is mobile, and if barriers rise here, they will go elsewhere.”
Immigration attorney Richard T. Herman, co-author of Immigrant, Inc., explains:
“Policies like this impose real costs on America’s future. Employers and workers need guidance to navigate both the law and the shifting political climate.”
FAQs: Economic Impacts of Trump’s New H1B $100,000 Filing Fee
What is Trump’s new H1B $100,000 filing fee and who does it apply to?The $100,000 filing fee applies to all new H1B visa petitions filed after September 21, 2025. It does not apply to renewals, amendments, or existing H1B holders. The fee is a one-time charge per petition.
How will the $100,000 H1B fee affect the overall U.S. economy?Economists warn the fee could reduce high-skilled immigration, slowing innovation, decreasing productivity growth, and reducing U.S. GDP. Past research shows H1B workers contributed significantly to economic expansion, and restricting access risks long-term competitiveness.
Will the fee impact U.S. job creation?Yes. By discouraging H1B hiring, the fee could cut back on startup formation, slow company expansion, and eliminate tens of thousands of potential job opportunities that high-skilled immigrants typically help create.
How will the H1B $100,000 fee affect U.S. employers?Employers face sharply higher costs to hire skilled foreign workers. Large companies may absorb the cost but reduce overall filings, while small and medium-sized businesses may be priced out entirely. Many employers may consider outsourcing or offshoring instead. Additionally, employers must comply with prevailing wage levels as set by the Department of Labor to ensure H1B workers are paid salaries that match the standards for their occupation.
Which industries are most exposed to the H1B $100,000 fee?Technology, finance, consulting, healthcare, and higher education are the most affected. These industries rely heavily on H1B workers for innovation, specialized knowledge, and advanced research.
How will the technology industry be affected by the H1B $100,000 fee?Tech firms depend heavily on H1B workers for engineering, data science, and software roles. The fee will reduce their access to talent, potentially slowing research and development and weakening U.S. leadership in areas like artificial intelligence.
What impact will the H1B $100,000 fee have on startups and small businesses?Startups and small businesses, which often rely on a small number of skilled hires to scale operations, may find the fee prohibitively expensive. Many will lose access to specialized talent, limiting growth and innovation.
Will the fee cause companies to offshore jobs?Yes. To avoid paying $100,000 per petition, many employers may move jobs overseas, accelerating offshoring and reducing high-paying domestic employment opportunities.
How does the fee affect American workers?While some argue the fee could push employers to hire more U.S. workers, research shows H1B workers complement—not replace—native workers. By restricting H1Bs, wage growth and productivity gains for U.S. employees could decline.
Will the $100,000 H1B fee impact universities and research institutions?Yes. Universities that rely on international graduate students and researchers may see fewer transitions to H1B roles, reducing research capacity and weakening the U.S. role in global science and innovation.
What are the broader global implications of the $100,000 H1B fee?The U.S. may lose its competitive edge in attracting global talent. Skilled workers may choose Canada, the UK, or Europe, where immigration pathways are less expensive and more accessible. This could fuel talent flight away from the U.S.
How will the fee impact foreign students graduating from U.S. universities?Many foreign students pursue H1Bs after graduation. With the new fee, fewer will be able to stay in the U.S., reducing the country’s ability to retain the talent it educates.
Can employers pass the cost of the $100,000 H1B fee to employees?No. U.S. law requires employers to pay H1B filing costs and prohibits shifting the fee burden to employees.
What will be the effect on outsourcing and consulting firms?Large consulting and outsourcing companies that file thousands of petitions annually face enormous cost increases. Many may cut back U.S. operations and move more work offshore.
How will the H1B $100,000 fee affect U.S. innovation?Immigrants on H1Bs account for a large share of U.S. patents and startup creation. Limiting their numbers reduces innovation output and diminishes America’s long-term competitiveness in science and technology.
Will the H1B $100,000 fee affect economic growth projections?Yes. Some forecasts suggest U.S. growth could decline by half a percentage point or more due to reduced high-skill immigration, fewer startups, and lower productivity.
What are economists saying about the $100,000 H1B fee?Economists broadly criticize the policy, warning it will reduce high-skilled immigration, weaken labor markets, and erode innovation. Projections suggest tens of thousands fewer jobs created annually and slower long-term growth.
How will multinational companies respond to the H1B fee?Many multinationals may expand operations in Canada, India, or Europe to access talent without paying the U.S. fee. This reduces the incentive to build or expand U.S.-based teams.
Will the fee increase protectionism in the U.S. labor market?Yes. The fee is seen as a protectionist measure that makes foreign hiring prohibitively expensive. However, instead of boosting American jobs, it may drive work overseas and reduce economic dynamism.
Could the fee face legal or political challenges?Yes. Business associations, universities, and advocacy groups are preparing lawsuits arguing the fee is unlawful under administrative and constitutional law. Political pressure may also force revisions or repeal.
How is the H1B program enforced and what role does national security play?The Department of Homeland Security oversees the H1B program, ensuring compliance with immigration and national security policies. DHS has the authority to regulate visa programs to protect U.S. workers and national interests.
Are there any concerns about worker rights or layoffs for H1B employees?Yes. Some employers require H1B workers to sign nondisclosure agreements as a condition of severance or during layoffs, which can limit their ability to speak out about workplace abuses or unfair practices.
Take Action: Protect Your Future in a Changing Immigration Landscape
The debate over the economic impact of immigrant talent, especially professionals on H-1B visas, has never been more urgent. With President Trump’s proposed $100,000 H-1B filing fee, employers, entrepreneurs, and skilled workers face unprecedented uncertainty. These changes could reshape hiring decisions, limit access to global talent, and alter the very foundation of America’s innovation economy.
If you are an employer worried about rising costs, a professional navigating your career path, or a student planning to transition from OPT to H-1B, you cannot afford to wait and see. You need an advocate who not only understands the law but also the economic stakes that H-1B workers represent for the U.S. economy.
Attorney Richard T. Herman is uniquely positioned to guide you through this moment. As a nationally recognized immigration lawyer with more than 30 years of experience, and co-author of Immigrant, Inc., he has spent his career helping businesses and immigrant talent harness the power of immigration to drive growth, opportunity, and innovation. He has been a leading voice in the national conversation on H-1B visas, economic competitiveness, and immigrant entrepreneurship. He has also contributed to major publications such as USA Today, further establishing his credibility and experience in the field.
Don’t let fear or confusion about the $100,000 H-1B fee hold you back. Whether you are an employer, startup founder, international student, or high-skilled professional, Richard Herman can help you understand your options, develop strategies, and protect your future.
➡️ Book a Consultation with Attorney Richard T. Herman today and gain the clarity and confidence you need in the face of historic immigration changes.
Comprehensive Resource List: Economic Impacts of H-1B Visas
1) Government & Congressional Primers (authoritative overviews)
- USCIS – H-1B Employer Data Hub – official employer-level approvals/denials you can analyze by year and industry.
https://www.uscis.gov/tools/reports-and-studies/h-1b-employer-data-hub - USCIS – Immigration & Citizenship Data (Reports & Studies) – program-wide stats and periodic releases.
https://www.uscis.gov/tools/reports-and-studies/immigration-and-citizenship-data - USCIS – “Characteristics of H-1B Specialty Occupation Workers” (FY 2024 Report to Congress, PDF) – annual demographic, wage, occupation, and geography analysis.
https://www.uscis.gov/sites/default/files/document/reports/ola_signed_h1b_characteristics_congressional_report_FY24.pdf - U.S. Department of Labor (DOL) – Office of Foreign Labor Certification (OFLC) – disclosures for LCAs (H-1B/H-1B1/E-3), PERM, and more.
https://www.dol.gov/agencies/eta/foreign-labor - DOL – OFLC Performance & Disclosure Data (quarterly stats + archives) – downloadable CSVs for trend analysis.
https://www.dol.gov/agencies/eta/foreign-labor/performance - OFLC performance data index – machine-readable datasets for reproducible research.
https://catalog.data.gov/dataset/?tags=oflc-performance-data - Congressional Research Service (CRS) – “The H-1B Visa for Specialty Occupation Workers” – concise Hill-level explainer on legal structure and usage.
https://www.congress.gov/crs-product/IF12912 - U.S. Government Accountability Office (GAO) – H-1B Foreign Workers (program oversight) – methodology and data gaps that often shape reforms.
https://www.gao.gov/assets/a239564.html
2) Economists’ & Peer-Reviewed Studies (canonical evidence)
- Peri, Shih & Sparber (Journal of Labor Economics) – STEM Workers, H-1B Visas, and Productivity in U.S. Cities (H-1B-driven STEM growth boosts native wages and productivity).
https://giovanniperi.ucdavis.edu/uploads/5/6/8/2/56826033/stem-workers.pdf - Peri, Shih & Sparber – What Can We Learn from H-1B Lotteries? (NBER) – lottery-based identification to measure local labor market effects.
https://www.nber.org/papers/w21175 - Kerr & Lincoln (Journal of Labor Economics) – The Supply Side of Innovation: H-1B Reforms & U.S. Ethnic Invention – H-1B supply shocks → higher patenting and SE employment.
paper version: https://www.hbs.edu/ris/Publication%20Files/09-005_005359f2-2ee8-4d73-b248-af492e44ecb4.pdf - Bound, Khanna, Morales & Turner (NBER) – Understanding the Economic Impact of the H-1B Program in the 1990s (w23153) – macro effects during the Internet boom.
https://www.nber.org/system/files/working_papers/w23153/w23153.pdf - Mayda, Ortega, Peri, Shih & Sparber (NBER w23902) – Effect of the H-1B Quota on Employment & Selection – caps reduce new H-1B employment without substituting natives one-for-one.
https://www.nber.org/papers/w23902 - Doran, Gelber & Isen – The Effects of High-Skilled Immigration Policy on Firms – lottery-based firm-level outcomes and crowd-out debate (read with Kerr/Peri for balanced view).
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2523241 - Brookings – Peri, “Reforms for Simplicity, Fairness, and Economic Growth” – synthesis of immigration’s growth channels (citations to H-1B innovation literature).
https://www.brookings.edu/wp-content/uploads/2016/06/05_immigration_peri_paper.pdf - Brookings – Neil Ruiz, “Mapping the Demand for H-1B Workers” – metro-level demand and sectoral exposure (policy-relevant maps/figures).
https://www.brookings.edu/articles/the-search-for-skills-demand-for-h-1b-immigrant-workers-in-u-s-metropolitan-areas/
3) Think Tanks & Policy Briefs (plain-English syntheses for media & execs)
- Peterson Institute (PIIE) – Jennifer Hunt, 2025 RealTime Economics – economist’s critique on curbs to high-skill immigration; discusses potential program-shut-down scale impacts.
https://www.piie.com/blogs/realtime-economics/2025/new-us-curb-high-skill-immigrant-workers-ignores-evidence-its-likely - National Foundation for American Policy (NFAP) – H-1B Policy Briefs (2025) – cap restrictiveness, wage evidence, and growth effects; helpful for quick stats/quotes.
2025 brief: https://nfap.com/wp-content/uploads/2025/03/H-1B-Is-The-Most-Restrictive-Visa.NFAP-Policy-Brief.2025.pdf - American Immigration Council – H-1B Fact Sheet – annotated summaries of the research consensus on complementarity, jobs, and wages.
https://www.americanimmigrationcouncil.org/fact-sheet/h1b-visa-program-fact-sheet/ - Cato Institute – David Bier on H-1B & fee policy – legal/economic critiques used in media and court filings.
https://www.cato.org/blog/trump-shouldnt-impose-100000-fee-h-1b-visas - Brookings (Metro & Global) – long-running series connecting H-1B demand, innovation, and regional growth.
https://www.brookings.edu/topic/immigration/
4) University Research Hubs (downloadable papers, briefs, data)
- UC Davis – Global Migration Center (Giovanni Peri, Director): H-1B & STEM productivity research hub; briefs & datasets
paper overview: https://globalmigration.ucdavis.edu/research/effects-foreign-skilled-workers-natives-evidence-h-1b-visa-lottery - Harvard Business School – Working Papers on H-1B & innovation
Kerr & Lincoln working paper archive: https://www.hbs.edu/ris/Publication%20Files/09-005_005359f2-2ee8-4d73-b248-af492e44ecb4.pdf - NBER – Central repository of H-1B economics (Peri/Shih/Sparber; Kerr/Lincoln; Bound et al.; Mayda et al.)
Catalog search: https://www.nber.org/search?utf8=%E2%9C%93&q=H-1B - JSTOR / University of Chicago Press – Journal of Labor Economics special issues (H-1B and high-skill immigration).
(Access via institution; see JOLE S1 2015 issue for H-1B cluster)
5) Official Data & Dashboards (for your charts and econometrics)
- USCIS – Employer Data Hub (download CSV/Excel) – employer approvals/denials, job titles, NAICS.
https://www.uscis.gov/tools/reports-and-studies/h-1b-employer-data-hub - USCIS – Immigration & Citizenship Data – quarterly performance, forms, processing timelines.
https://www.uscis.gov/tools/reports-and-studies/immigration-and-citizenship-data - DOL/OFLC – H-1B LCA disclosure data – wages, worksites, SOC codes; supports wage/region studies.
https://www.dol.gov/agencies/eta/foreign-labor
Performance/quarterly stats: https://www.dol.gov/agencies/eta/foreign-labor/performance - OFLC datasets (API / bulk) – for reproducible dashboards.
https://catalog.data.gov/dataset/?tags=oflc-performance-data
6) Professional Associations & Industry Voices (sector-specific economics)
- U.S. Chamber of Commerce – Immigration & Workforce – briefs tying high-skill immigration to competitiveness.
https://www.uschamber.com/immigration - TechNet / Compete America – industry coalitions on high-skill talent pipelines; business impacts.
https://technet.org/ | https://competeamerica.org/ - National Association of Manufacturers (NAM) – manufacturing innovation and talent pipeline analyses.
https://www.nam.org/ - American Medical Association (AMA) & AAMC – physician-shortage and international medical graduate pipeline; H-1B reliance in underserved areas.
AMA: https://www.ama-assn.org/ | AAMC doctor-shortage research: - Financial Services Forum / SIFMA – quant/fin-tech labor needs, offshoring risk when visas tighten.
https://www.sifma.org/
7) Media Summaries Using Economists’ Estimates
- JPMorgan economists (coverage) – projected ≈5,500 fewer work authorizations per month with a major fee shock; helpful for impact framing.
https://www.businessinsider.com/jpmorgan-h1b-visa-fee-economists-analysis-monthly-reduction-authorizations-2025-9 - Reuters – sector impacts (finance; healthcare/physicians and rural care pipelines).
Finance: https://www.reuters.com/business/finance/financial-firms-feel-outsized-impact-trumps-h-1b-overhaul-2025-09-24/
Healthcare: https://www.reuters.com/business/healthcare-pharmaceuticals/trumps-h-1b-visa-fee-increase-raises-us-doctor-shortage-concerns-2025-09-24/ - PIIE – Jennifer Hunt – succinct expert quote for “why it matters” boxes.
https://www.piie.com/blogs/realtime-economics/2025/new-us-curb-high-skill-immigrant-workers-ignores-evidence-its-likely
What’s New With the H-1B $100,000 Filing Fee (November 2025: Rules • Exemptions • RFEs • Denials • Litigation Tracker