Immigration Alert

Effective 21 September 2025

Background

On 19 September 2025, the United States (US) President issued a proclamation restricting the entry of foreign nationals in the US holding H-1B non-immigrant visa¹.

The H-1B visa is a US work visa that allows employers to temporarily employ foreign professionals in specialty occupations requiring theoretical or technical expertise, such as IT, engineering, science, finance, and healthcare. It is one of the most widely used visa categories for filling US skill shortages.

This action forms part of the US administration’s broader H-1B reform agenda, which aims to address perceived misuse of the programme and ensure it is targeted toward “the most highly skilled” workers. The proclamation stipulated that, effective 12:01 a.m. EDT on 21 September 2025, employers must pay a USD 100,000 fee per H-1B petition for the sponsored worker to be admitted to the US.

The initial announcement caused considerable uncertainty as it appeared to apply to all foreign nationals currently holding H-1B visa. This raised concerns that even long-standing visa holders might be barred from re-entry without the new fee payment.

Subsequent clarifications issued by U.S. Citizenship and Immigration Services (USCIS)² and U.S. Customs and Border Protection (CBP)³ on 20 September, and by the U.S. Department of State (DOS) on 21 September, significantly narrowed the scope. These agency communications confirmed that the fee is prospective only, applying solely to new H-1B petitions filed on or after 21 September 2025.

Change / Development

• Fee Requirement

  • A one-time fee of USD 100,000 per petition is required to be paid by the employer for all new H-1B petitions filed on or after 21 September 2025.

  • This applies to both future cap-subject filings (e.g., FY2026 lottery) and cap-exempt petitions filed after the effective date.

• Exemptions from Fee Payment

  • Petitions filed before 21 September 2025 (including those under adjudication)

  • Existing H-1B visa holders with valid visas and approved petitions

  • H-1B renewals, extensions, or amendments to be filed in future for workers already in the US on H-1B valid visa

• Travel

  • Current H-1B holders remain admissible with valid visas/petitions filed before the effective date, though minor delays at ports of entry are possible as the rule is implemented.
  • H-4 dependents remain admissible where the principal H-1B is eligible.

• Exceptions

  • The proclamation authorises national interest exceptions (NIEs), though procedures for requesting these have not yet been defined.

• Implementation Status

  • USCIS and DOS have not yet issued procedures for fee collection, documentation, or proof of payment.

• Future Reforms

  • The proclamation signals further measures, including:

    • A Department of Labor rulemaking to raise prevailing wage levels

    • DHS reforms to prioritise higher-paid applicants in the H-1B lottery

    • Additional policy changes expected in the coming months

BDO India Comments / Conclusion

The clarifications from USCIS, CBP, and DOS substantially reduce the scope of the proclamation. Current H-1B workers, dependents, petitions filed before 21 September, and in-country extensions or amendments are not impacted. The primary impact is on employers filing new H-1B petitions on or after 21 September 2025.

FY2026 H-1B cap registration and lottery cycle will be the first major filing season subject to the USD 100,000 fee requirement. Cap-exempt new petitions filed after the effective date will also be subject to the fee.

Employers should therefore carefully evaluate upcoming H-1B hiring strategies, budget for significantly higher costs in new filings, monitor additional reforms expected in the coming months and evaluate alternative visa categories for future deployment. Employees already in the US may continue as normal but should exercise caution with international travel until operational details are finalised.

This is a rapidly evolving development, and further updates from DHS, DOS, or potential litigation could alter its application. BDO India will continue to monitor and provide timely updates.