The United States has introduced significant changes to its H-1B visa program, creating new challenges and considerations for employers who rely on highly skilled international talent.
On September 19, 2025, President Donald Trump signed a proclamation introducing a $100,000 application fee for new H-1B visas, effective September 21, 2025, a substantial increase from the previous range of $1,700 to over $9,000, depending on the employer and applicant's circumstances.
The announcement, coupled with early uncertainty about whether the change applied to renewals or only new petitions, has left companies and visa holders seeking clarity.
The White House has since confirmed that the fee applies only to new applicants, beginning with the February 2026 lottery cycle. Current H-1B holders and renewals will not be impacted.
H-1B Visa News Changes: What We Know So Far
The $100,000 fee applies only to new H-1B petitions, filed on or after September 21, 2025. It does not apply to previously issued H-1B visas, petitions filed before September 21, 2025, or renewals.
It does not prevent current H-1B visa holders from travelling in and out of the US.
The changes are expected to take effect with the 2026 lottery cycle.
Key Points Employers Should Know
Category | Details |
|---|---|
New Fee Structure | Employers sponsoring new H-1B candidates must pay a one-time $100,000 fee. |
Timing | Applies to future applicants in the 2026 lottery; does not affect existing visa holders or renewals. |
Selection Changes | The current lottery (85,000 visas annually) will be replaced with a wage-based selection system, prioritizing higher-paying roles. |
Industry Impact | Large tech firms (Amazon, Microsoft, Google) may absorb costs; startups, universities, and research institutions could face challenges in keeping pace under the new system. |
Global Competition | Canada and Europe are positioning themselves to attract skilled workers who may be priced out of the U.S. market. |
Why This Matters for Employers
For employers, these changes raise both cost and talent pipeline challenges:
Budgeting and Workforce Planning – The $100,000 fee could shift how companies calculate the return on investment (ROI) of hiring global talent. Only the most business-critical, high-value roles may justify the cost.
Recruitment Strategies – The wage-based system favors higher salaries, meaning companies that cannot compete at the top of the market may need to expand hiring domestically or look to other global hubs.
Employee Relations – H-1B workers may be unsettled by the uncertainty. Transparent communication and immigration support services will be key to maintaining trust and retention.
Compliance – Employers must ensure accurate filings and readiness for the new rules once they take effect. Legal and HR teams should partner closely to review sponsorship strategies.
Next Steps for Employers
Audit Your H-1B Workforce: Understand how many employees are on H-1B visas and whether future hires will be impacted.
Engage with Immigration Counsel: Stay ahead of United States Citizenship and Immigration Services (USCIS) guidance and prepare for possible further adjustments.
Scenario Plan for Talent Needs: Consider alternative markets, nearshoring strategies, or using an Employer of Record (EOR) solution like Atlas HXM if H-1B sponsorship becomes cost-prohibitive or complex.
Communicate Proactively: Provide updates and reassurance to current H-1B staff to alleviate concerns.
Frequently Asked Questions (FAQs)
1. When do the new H-1B visa fees take effect?
The $100,000 application fee will apply starting with the February 2026 H-1B lottery cycle.
2. Do the new fees apply to H-1B renewals or only new applications?
The new fee applies only to new petitions. Current H-1B visa holders and renewals will not be impacted.
3. What was the previous cost of applying for an H-1B visa?
Previously, employers paid between $1,700 and over $9,000 per application, depending on factors such as company size and whether expedited processing was requested.
4. How many H-1B visas are issued each year?
Roughly 85,000 H-1B visas are issued annually, though demand far exceeds supply.
5. What is the wage-based selection system, and how does it affect employers?
The new wage-based system replaces the random lottery for capped H-1B visas, prioritizing applicants offered higher salaries. Large employers sponsoring capped H-1Bs may have an advantage, while smaller companies may find it extremely difficult to secure visas.
Note: this wage-based selection does not apply to H-1B categories that are exempt from the cap, such as certain educational institutions and nonprofits. However, all new H-1B applicants, including those exempt from the lottery, will still be subject to the $100,000 fee.
6. Which industries will be most affected by these changes?
Technology, biotech, AI, and education are expected to feel the greatest impact since they rely heavily on global talent pipelines.
7. How will this impact U.S. competitiveness for global talent?
Other countries like Canada and EU member states are already positioning themselves as more attractive alternatives for skilled workers who may be priced out of the U.S. market.
8. What should employers do now to prepare?
Employers should audit their current H-1B workforce, consult with immigration counsel, adjust workforce planning budgets, and explore alternative markets or EOR models to maintain access to top talent.
How Atlas HXM Can Support
With its EOR services, Atlas HXM helps employers navigate the updated H-1B visa regulations while maintaining access to their existing talent pools. Our platform enables HR teams to assess which employees and future hires are affected by the new $100,000 fee and wage-based selection system, prioritize critical roles, and ensure these employees remain legally employed and fully supported. Additionally, Atlas HXM streamlines communication with H-1B staff, providing transparent updates and reassurance to maintain trust and engagement during this transition.
Beyond compliance, Atlas HXM's EOR solutions offer a cost-effective and flexible alternative to sponsoring new H-1B visas, allowing companies to retain talent, explore alternative markets or nearshoring options, and continue hiring internationally without the administrative and financial burdens of visa sponsorship. By partnering with Atlas HXM, organizations gain operational continuity, global hiring flexibility, and a competitive advantage—even in a changing immigration landscape.
Final Thought on the H-1B Program Changes
The H-1B program has long been a cornerstone of U.S. competitiveness, allowing businesses to access highly skilled global talent. With the new fee structure and shift to a wage-based system, employers face higher costs but also an opportunity to reassess how they attract, retain, and compete for talent in an increasingly globalized workforce.