
Special Edition: H-1B Shockwave
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An unexpected H-1B mandate has jolted the tech world, forcing urgent recalculations on talent and mobility. We break down who it affects - the facts.
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On September 19, 2025, the White House issued a proclamation imposing a $100,000 payment on all new H-1B petitions filed after 12:01 a.m. EDT on September 21. The restriction, valid for 12 months (unless extended), is designed to deter what officials described as “systemic abuse” of the visa program. The proclamation frames the change as a travel restriction: unless the new fee is paid, affected foreign workers may be denied entry or reentry.
Officials later clarified:
The $100K is a one-time petition fee, not annual.
It applies only to new petitions, not extensions or renewals.
Existing H-1B holders and their dependents are unaffected for travel and reentry.
Still, the abrupt rollout with less than two days’ notice initially triggered widespread confusion across the tech sector and among international workers.
New H-1B applicants abroad: Must pay the $100K fee with any petition filed after Sept 21.
Existing H-1B holders: Not subject to the new fee, can continue travel/reentry.
Renewals/extensions: Currently exempt.
Students (F-1/OPT → H-1B): Change-of-status inside the U.S. should not trigger the fee, but travel abroad before approval may expose them to risk.
More details in CBS News’ legal explainer.
The lack of immediate clarity led major companies to issue urgent internal guidance.
Urged all H-1B staff inside the U.S. to remain until further notice.
Directed employees abroad to return before Sept 21 if possible.
Warned even H-4 dependents should avoid travel until clearer guidance emerges.
Provided a reporting mechanism for exceptional cases.
(Business Insider memo excerpts, Economic Times coverage)
Told employees in H-1B status already in the U.S. to avoid all international travel.
Recommended those abroad return before the deadline.
Instructed employees stuck abroad after Sept 21 to remain outside until further updates.
(Amazon memo via Business Insider)
Called the moment an “uncertain time for you and your family.”
Directed staff to consult Fragomen, its immigration law partner, for individual advice.
Warned against discretionary travel until further notice.
(Times of India)
Legal teams advised H-1B holders to stay in the U.S. until rules were clearer.
Companies signaled they would continue to review petitions but with travel restrictions in mind.
(Reuters)
Tech firms (Microsoft, Google, Amazon, Apple, Meta) are among the heaviest users of H-1Bs. The new fee raises total costs per petition from ~$4K to $100K+, a prohibitive increase for startups and mid-sized firms.
The Guardian noted this could cut off the traditional pipeline of foreign STEM graduates entering U.S. firms, pushing them toward Canada, Europe, or remote opportunities.
The administration is also moving to replace the random lottery with a wage-ranked selection system, prioritizing higher-paying jobs.
(Reuters on wage-ranking proposal)
The Department of Labor is directed to raise prevailing wage levels to further shift the program toward high-paid, high-skill roles.
Proponents argue the move ends “abuse” and reserves visas for only the most critical talent. Netflix co-founder Reed Hastings said the fee will “eliminate the luck of the lottery” and force companies to focus on “very high-value jobs.”
Critics, including immigration lawyers and the U.S. Chamber of Commerce, argue the change injects chaos, may exceed executive authority, and risks talent flight. Lawsuits challenging the policy are expected in federal court.
Vox analysis warns this could accelerate brain drain, with U.S. losing its edge in global talent competition.
The $100K H-1B fee has introduced unprecedented costs and risks into the U.S. talent pipeline. Clarifications have shielded existing workers from the worst fears, but new hires abroad face a steep barrier. Employers across tech and finance are scrambling to adapt, telling staff to stay put, cancel trips, or rush home before rules kick in.
The U.S. government has set the stage for a fundamentally reshaped visa system: fewer, higher-paid foreign workers, greater compliance burdens, and possible legal showdowns in the months ahead. For companies reliant on global talent, the next year will be a test of strategy, resilience, and legal outcomes.
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