H-1B $100,000 Fee Explained: Who Pays, Who’s Exempt, and What Changes in 2025
What Was Announced? — A Plain-Language Breakdown of the Proclamation
The following is a step-by-step explanation of the key provisions of the White House proclamation “Restriction on Entry of Certain Nonimmigrant Workers”, released on September 19, 2025, together with the clarifications given by the government and media the next day.
In short, the order takes effect at 12:01 a.m. EDT on September 21, 2025, for a 12-month period. Its core provision: entry under H-1B is restricted unless the petition is “accompanied or supplemented” by a $100,000 payment. However, the White House later clarified that the new fee does not apply to existing H-1B holders (including those re-entering or extending their stay).
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1) When, What, and Under What Authority?
Timing and form: Issued September 19, 2025, as a presidential proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers.”
Legal authority: Sections 212(f) and 215(a) of the Immigration and Nationality Act (INA), which authorize the President to restrict the entry of foreign nationals deemed detrimental to U.S. interests. The proclamation explicitly cites this authority in its preamble and Section 1.
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2) Dissecting the Key Clauses
The heart of the proclamation can be summarized as follows (rephrased from the original text):
1. Entry restriction + $100,000 exception
Section 1(a): Restricts entry of foreign nationals under INA 101(a)(15)(H)(i)(b) (i.e., H-1B). Exception applies if the petition is “accompanied or supplemented” by proof of a $100,000 payment.
Effective date and duration: Begins 12:01 a.m. EDT, September 21, 2025, for 12 months (extendable).
2. No decision on petitions without payment
Section 1(b): For petitions filed abroad without the $100,000 payment, DHS is instructed not to adjudicate them for 12 months. The State Department is also directed to issue guidance to prevent abuse of B-visas.
3. National Interest exceptions
Section 1(c): DHS is authorized to grant exceptions for individuals, companies, or industries if consistent with the national interest and if security or welfare is not at risk.
4. Who pays?
Section 2(a)–(c): The employer (petitioner) must prove and retain evidence of the $100,000 payment before filing. The State Department and DHS are to jointly deny visas or entry if no proof is presented. → This makes clear that the burden lies with the employer, not the employee.
5. Applicability and timing
Section 3(a): Applies only to entries (or attempted entries) occurring after the effective date. No retroactive application.
In one line: “Starting 9/21 at 12:01 a.m. EDT, H-1B entry is limited to petitions for which the employer has paid and documented a $100,000 fee. DHS may allow exceptions in the national interest.”
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3) Who Is Affected? Early Confusion vs. Government Clarification
Why confusion spread: The text never used the word “new applicants.” It simply stated “entry restricted + exception for $100,000 petitions,” which naturally led to the interpretation that even current visa holders returning from abroad would be subject to the fee. Some law firms, university international offices, and companies issued conservative guidance like “return before the effective date” or “avoid international travel.”
White House clarification: On September 20, a White House spokesperson told Reuters, Business Insider, and others that the $100,000 fee applies to new applicants, not to existing H-1B holders (including re-entries and extensions).
Bottom line: There remains a gap between the broad statutory language and the narrower administrative guidance, but the official government position is that existing holders are exempt; only new applicants are covered. (Further implementing guidance is expected to make this explicit in writing.)
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4) “Annual or One-Time?” — Conflicting Media Reports
Annual fee interpretation: Outlets like AP, Washington Post, and Reuters described the fee as annual ($100,000 per year), reflecting how the initial announcement was framed.
One-time fee interpretation: A day later, the New York Post and CBS reported that the White House had re-confirmed it as a one-time payment for new applicants, correcting earlier wording from officials.
Practical note: Employers and applicants should wait for DHS/State Department implementing guidance (FAQs, field manuals, Federal Register notices), which will serve as the definitive source. Media reports have differed in their phrasing.
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5) Why Did It Cause Such an Uproar?
1. The immediacy of the effective date
The proclamation specified “September 21, 2025, at 12:01 a.m. EDT”—a concrete timestamp that triggered panic over the weekend. Companies in tech and finance reportedly issued memos urging H-1B/H-4 employees abroad to return immediately or cancel travel.
2. Transitional risk of inconsistent enforcement
The text is broad, guidance is incomplete, and front-line officers (CBP at airports, consular officers abroad) could interpret it differently. Universities and law firms advised employees to carry extra documentation such as I-797 approval notices, recent pay stubs, employment letters, and attorney statements.
3. The scale of the new cost
Previously, H-1B fees were in the hundreds to a few thousand dollars (e.g., $215 registration, $780 petition fee, plus various surcharges). Adding $100,000 fundamentally alters the cost structure. Policy intent appears to be discouraging overuse and prioritizing only high-wage or strategically critical hires.
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6) Quick Checklist
Effective period: Starts September 21, 2025, 12:01 a.m. EDT, for 12 months (renewable).
Who is covered: Government clarification says new applicants only, not existing holders.
Who pays: Employers (petitioners), not individuals.
Exceptions: National Interest waivers at the discretion of DHS.
Fee frequency: Conflicting media reports (“annual” vs. “one-time”). DHS/State guidance will resolve.
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7) A 48-Hour Snapshot in the Korean Community
Friday (announcement day): Panic messages spread in chat groups—“You’ll need to pay $100,000 to re-enter,” “Come back before the weekend ends.” Some companies canceled trips or told employees to fly back immediately.
Saturday (clarification): Reports came out saying “existing holders exempt, new applicants only.” The rush subsided, but questions surged among new applicants and those awaiting visa stamping.
Now: The proclamation text remains broad, while the White House insists on a narrower scope. Companies and universities are telling workers to prepare extra documents and minimize travel until official guidance is issued.
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Final Summary
Legal text: Entry restricted unless petition is tied to a $100,000 payment; effective September 21, 2025; 12-month duration; employer pays; national interest exceptions possible.
Government clarification: Fee applies only to new applicants, not to existing holders re-entering or extending status.
Unresolved details: Whether it’s annual or one-time, and the exact procedures—these await DHS and State Department implementing guidance.
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Part II. Why the Confusion?
1) Ambiguous Wording — Law vs. Interpretation
The proclamation contained a single pivotal sentence: “H-1B entry is restricted, except where the petition is accompanied or supplemented by $100,000.” Because it did not specify “new applicants,” the natural reading was that everyone—both existing and new—would need to pay $100,000.
This type of ambiguity is common in presidential proclamations, which tend to be concise and declarative. But with H-1B affecting hundreds of thousands of people, even one vague clause can disrupt entire communities worldwide.
2) Amplification by Early Reports
Lawyers and the media were equally unsettled. Major U.S. law firm Baker Donelson warned that “all H-1B entries from abroad could be denied unless accompanied by a $100,000 payment.” The Washington Post reported that “hundreds of thousands of Indian and Korean engineers are rushing back to the U.S.” Such language, though based on partial interpretations, was read by many as established fact.
3) Spread of Anxiety in Korean Communities
Among Korean engineers and students abroad, panic spread rapidly. Chat groups filled with messages like “If you’re in Korea right now, you’ll need to pay $100,000 to get back in” or “Return before the weekend ends.”
One Korean engineer in Silicon Valley recounted: “I was visiting my parents in Seoul when I read group chats saying I wouldn’t be able to re-enter without paying $100,000. I immediately started checking flights.” Round-trip airfare reportedly spiked by 20% in a single day—an example of how uncertainty translated into direct economic cost.
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Part III. What Actually Changes?
1) Existing Holders (Re-entry / Extension)
The White House quickly clarified: existing H-1B holders are not subject to the $100,000 fee. In practice, however, the risk lies in inconsistent interpretation at entry points. That is why attorneys are urging employees to carry I-797 approvals, pay stubs, employment letters, and legal opinions—not because the law requires it, but to avoid misinterpretation at the border.
2) New Applicants (New Petitions)
The real impact falls on those applying for new H-1B visas. Each spring’s lottery winners—normally about 85,000 per year—will now require petitions tied to $100,000.
Crucially, the proclamation specifies that employers, not individuals, must pay. If an employer cannot shoulder the fee, the hire will not proceed. This is expected to discourage startups and small companies, concentrating opportunities further in large corporations and Big Tech.
3) The Numbers
With 85,000 new H-1Bs annually, applying $100,000 each amounts to $8.5 billion per year (approx. ₩11 trillion) in added costs for companies. Economists compare this to the scale of major subsidy programs, arguing it functions as a hidden hiring deterrent.
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Part IV. Long-Term Implications and Responses in Korea
1) Shifting Global Talent Competition
Historically, the U.S. maintained tech dominance by drawing top global talent—70% of Silicon Valley engineers are foreign-born. But a $100,000 barrier threatens to slow this flow. Canada, the U.K., and Australia quickly seized the moment, running campaigns like “Come to our country instead.” Canada has already implemented an Open Work Permit (OWP) route for H-1B holders, filling its first 10,000 slots in just two days.
2) Narrowing Options for Korean Applicants
For Korean students and engineers eyeing the U.S., choices have shrunk. One Seoul National University computer science graduate received a startup offer in the U.S., only to have it withdrawn when the firm couldn’t afford $100,000. By contrast, companies like Google or Amazon can still absorb the cost. The result: even more concentration in large corporations.
3) Strategic Adjustments for Korean Firms
Korean IT firms also need to adjust. Operating R&D centers in the U.S. may become prohibitively expensive, pushing them to expand research at home or shift operations to Canada or the U.K.. This is less about evasion and more about survival in a global talent war.
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Part V. What to Watch Next
1. Legal challenges: The American Immigration Lawyers Association (AILA) is already considering lawsuits, arguing the fee is excessive and unlawful. A federal court could strike it down.
2. Implementation guidance: DHS and the State Department must release detailed instructions. Whether exemptions for re-entry holders are explicitly codified will be critical.
3. Corporate pushback: Silicon Valley firms may step up lobbying if talent loss becomes severe.
4. International reactions: Canada has already updated its Tech Talent Strategy, openly courting Korean and Indian engineers who feel blocked in the U.S.
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Conclusion
The H-1B $100,000 debate is not just about money—it signals a potential turning point in U.S. talent policy. While existing holders are exempt, new applicants face a heavy new burden that shifts opportunities toward large corporations and away from startups.
For Koreans, choices are narrowing, and for Korean firms, strategic recalibration is unavoidable. The decisive factors ahead are lawsuits, agency guidance, and corporate lobbying. Over the next year, the way this policy is implemented could reshape global talent flows—and Korea must be prepared to adapt.
References
White House. (2025, September 19). Proclamation on the Restriction on Entry of Certain Nonimmigrant Workers. The White House, Washington D.C.
U.S. Citizenship and Immigration Services (USCIS). (2025). H-1B Cap Season and Lottery Process. Retrieved from https://www.uscis.gov
Reuters. (2025, September 20). White House clarifies $100,000 H-1B visa fee applies to new applicants, not existing holders.
The Washington Post. (2025, September 19–20). Tens of thousands of engineers rush back amid H-1B visa confusion.
Associated Press (AP). (2025, September 20). Confusion grows after Biden’s $100,000 H-1B visa proclamation.
Business Insider. (2025, September 20). H-1B holders exempt from new fee, White House says.
New York Post / CBS News. (2025, September 21). White House calls H-1B $100,000 fee a one-time payment for new applicants.
American Immigration Lawyers Association (AILA). (2025). Statement on the legality of excessive visa fees.
Immigration, Refugees and Citizenship Canada (IRCC). (2023–2025). Tech Talent Strategy & H-1B Open Work Permit Program. Retrieved from https://www.canada.ca