Last Updated October 3, 2025
The U.S. government’s newly enforced $100,000 fee for H-1B petitions could reshape hiring across the country.
Tech firms and staffing agencies in particular may face enormous financial strain if they want to continue bringing on H-1B workers. Global effects are likely as well, as foreign job seekers aiming for U.S. employment may see their opportunities shrink.
Key Takeaways
- The new $100,000 H-1B visa petition fee creates major financial strain for employers, especially in tech and staffing (particularly, IT staffing).
- Companies may cut back on H-1B hires, shift to U.S. workers, or rely more on nearby or remote international talent.
- Foreign workers face reduced opportunities and tougher job transfers or extensions under the new policy.
- Medical groups, tech unions, and industry leaders are pushing back, warning of negative impacts on innovation and workforce stability.
What Is the H-1B Visa Program?
The H-1B visa program is a temporary visa category that allows employers to petition for highly qualified foreign workers, typically to fill specialty positions. These employees must have at least a bachelor’s degree and often work in fields such as IT, science, mathematics, and engineering. Approval for an H-1B visa grants foreign employees three years to work in the U.S., which may be extended to six years.
Since its creation in 1990, the program has played a major role in pushing the U.S. economy forward. Studies have shown that the H-1B visa initiative has helped lower the national unemployment rate over recent decades.
As of 2025, there were an estimated 730,000 H-1B visa holders nationwide. While there is an 85,000 annual cap on new H-1B approvals, 400,000 applications were approved in 2024 alone when including cap-exempt petitions. Cap-exempt applications include those filed by nonprofits, universities, or cases where existing H-1B holders are extending or transferring employment.
The Trump Administration’s $100,000 H-1B Fee Hike
On Sept. 21, 2025, President Trump announced the $100,000 fee on new H-1B petitions.
The official proclamation included the administration’s reasoning behind the new fee.
“(The H-1B nonimmigrant visa program) has been deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor,” the statement read. “The large-scale replacement of American workers through systemic abuse of the program has undermined both our economic and national security.”
The statement continued, claiming that some employers have abused the H-1B program to artificially suppress wages, resulting in a “disadvantageous labor market for American citizens, while at the same time making it more difficult to attract and retain the highest skilled subset of temporary workers.”
STEM industries (science, technology, engineering, and mathematics) have seen the largest impacts. The number of foreign STEM workers more than doubled between 2000-2019, increasing from 1.2 million to 2.5 million. The administration cites “abuse of the H-1B visa” as the main driver behind this influx.
The administration claims the H-1B program has directly resulted in fewer jobs for U.S. college graduates, particularly in IT. Because foreign workers often accept lower wages than U.S. citizens, integrating American graduates into IT positions at a steady volume has been challenging.
According to a study from the Federal Reserve Bank of New York, among college graduates ages 22 to 27, computer science and computer engineering majors face some of the highest unemployment rates in the country at 6.1 percent and 7.5 percent.
What Has Been the Response to the H-1B Visa Fee Hike?
Because the effects from the decision are so far-reaching, it’s no surprise that the decision has already drawn criticism and pushback.
The American Society of Anesthesiologists (ASA), for example, have demanded physicians be exempt from the new policy. In fact, 54 medical societies have urged the Department of Homeland Security to exempt physicians, residents, and fellows from the new $100,000 H-1B visa application fee.
Some major players in the medtech industry have already taken quick action, pausing H-1B hires.
Furthermore, the Alphabet Workers Union (AWU), which represents workers at Google’s parent company Alphabet, issued a statement criticizing Trump’s decision, citing “outrage.”
“These sweeping changes will fundamentally reshape the H-1B program and have a profound impact on H-1B workers, including many at Google,” the statement read. “This proclamation must be recognized for what it is: a hasty and divisive attack that pits foreign-born and U.S.-born workers against each other. We call on Google to act swiftly to protect its employees, ensure they can return home, advocate for those who cannot, and provide clarity and stability to all affected workers.”
Impacts of the H-1B Visa Fee on Staffing Agencies and Employees
Staffing agencies have made extensive use of the H-1B program to find highly qualified candidates for their clients. Access to a global pool of workers has been very beneficial for agencies hiring for niche, highly specialized roles in particular.
For foreign workers seeking employment in the U.S., the fee hike is a tough blow. In places like Eastern Europe and Southeast Asia, many talented young professionals endure years of education and training in hopes of being placed with a U.S.-based company for higher wages. This is especially true in STEM fields, particularly IT. The fee hike will likely limit their opportunities.
Employees already working on an H-1B may also feel the impacts, as transferring jobs could prove difficult. Fewer staffing companies and third-party placement agencies will be able to afford the $100,000 fee hike required to transfer or extend a visa.
Staffing agencies hoping to continue making use of the H-1B program will have to restructure budgets and spending priorities. $100,000 is no small figure — the fee alone could equal the cost of hiring one or more employees. Consulting firms and IT staffing firms in particular could face huge cost increases.
One of the more obvious outcomes is that agencies may recruit more U.S. citizens. Employment agencies might also prioritize hiring employees from nearby countries such as Canada, Mexico, and Central American nations. Hiring candidates in similar time zones who can travel temporarily to the U.S. if needed reduces the need for relocation and avoids the H-1B petition process. As a result, the workforce in these countries could benefit.
Staffing agencies that have relied on H-1B employees to fill positions must diversify their candidate pool. Offshore candidates can still be eligible without an H-1B, whether via alternative work visas or working remotely, so agencies should carefully consider how they adjust their processes.
Michael McCareins is the Content Marketing Associate at altLINE, where he is dedicated to creating and managing optimal content for readers. Following a brief career in media relations, Michael has discovered a passion for content marketing through developing unique, informative content to help audiences better understand ideas and topics such as invoice factoring and A/R financing.
