On Friday, September 19, 2025, the Trump administration issued a Presidential Proclamation requiring companies to pay a $100,000 fee on the entry of H-1B workers. The order is effective for a 1-year period starting September 21, 2025. Does not Impact Those in the United States The proclamation should not apply to those who currently hold H-1B status and are in the United States. “Entry” is a concept used in the definition of admission, which means the lawful entry of an alien into the United States after inspection and authorization by an immigration officer. H-1B holders currently in the United States should avoid international travel so they are not subject to “entry”. Extensions of status and change of employer applications should not be subject to the proclamation. F-1 students applying for a change of status to H-1B should not fall under the scope of the proclamation. Persons holding H-1B status and F-1 students seeking H-1B status should consult with an immigration lawyer before making international travel plans. The Order Is Likely Effective A secondary issue is whether the Presidential Proclamation is effective or an unenforceable violation of the law. I believe that this proclamation is effective to the extent it covers the issuance of visas by U.S. consulates. Presidential proclamations have the effect of law to the extent they fall within presidential powers, which include the regulation of foreign affairs and consular activities. The Immigration & Nationality Act §212(f) also provides the authority to suspend or restrict entry of noncitizens where deemed in the national interest. The proclamation would probably violate the Administrative Procedures Act and immigration laws if it applied to H-1B workers already in the United States and is therefore restricted to the “entry” of H-1B workers. Impact on U.S. Businesses and Legal Challenges There will be challenges to this proclamation. The proclamation will have an enormous impact on large tech companies like Amazon, Microsoft, and Google. It will also likely challenge the business models of outsourcing and consulting firms like Cognizant, Infosys, and TCS, which rely almost exclusively on H-1B and other foreign workers. But the impact will go beyond tech giants and consulting companies. Many startups, hospitals, and universities also rely on H-1B talent. This means patient care, research, and innovation could also be disrupted. Lawsuits challenging the proclamation may argue that it violates the statutory fee structure set out by Congress. A more novel legal challenge might be that the proclamation constitutes an impermissible tax under the Constitution. Some challenges will win and others will lose. However, the proclamation will likely expire before it is able to be heard by the U.S. Supreme Court. Why Issue this Proclamation My opinion is this proclamation was issued as a foreign policy measure. It is a negotiating strategy targeted at India. The U.S.-India trade in goods is not substantial. However, India’s major export to the United States comes by way of services and the export of knowledge through immigration. The proclamation will be used as a negotiating tactic by the United States in its effort to stop India from profiteering on cheap Russian oil and funding the Russian war against Ukraine. The proclamation also endears the administration to a global movement of anti-immigration proponents. September has seen large anti-immigration rallies in Australia and the UK. The proclamation will be lauded not just by an anti-immigrant base in the United States, but to a greater movement internationally. Overall Impact If effective, the presidential proclamation will have a deep impact on the H-1B program. It will deter recruitment, retention, and international mobility. Companies, workers, and students impacted should seek the guidance from immigration counsel and prepare contingencies. Cautious planning will be the best course of action. The larger question is whether this policy is an enforceable proclamation regulating immigration or merely a foreign policy tool. How do you see it playing out? About the H-1B Program The H-1B program is a temporary work visa program for foreign nationals to work in occupations requiring a bachelors degree. The program is subject to strict quotas and application fees which range from $2,310 for companies with 25 or fewer employees to $3,380. There is an additional $4,000 fee for employers with more than 50 workers where over 50% of the workers are on H-1B or L-1 status. Another optional fee is the $2,805 premium processing fee which expedites processing of H-1B fees. Other expected costs include $205 for consular processing. Employers can also expect to pay attorney fees which can vary based on the complexity and time worked on the matter.
