Relief for current H-1B employees but a blow to future hiring

The panic that swept through American corporations, their H-1B employees and family members has somewhat eased. Notifications issued late on Saturday night by the US Citizenship and Immigration Services (USCIS) and the US Customs and Border Protection (CBP) clarified that the controversial $100,000 “supplemental (entry) fee” announced under President Trump’s proclamation will not apply to existing H-1B visa holders or those with approved applications. “The proclamation does not impact the ability of any current visa holder to travel to or from the US,” stated USCIS.

According to the memo, the proclamation only applies prospectively to petitions that have not yet been filed. It covers H-1B employment petitions filed after 12:01 a.m. (Eastern Daylight Time) on September 21, 2025.


Immigration attorneys point out that the proclamation was poorly drafted. While the memo now clarifies the timing, the original language suggested the fee would apply to H-1B workers outside the US after the cut-off date, adding to the confusion. The general view is that the threat of litigation coupled with angry pushback from corporate America forced the administration to partially roll back its stance.

Commenting on the development, Poorvi Chothani, managing partner at Law Quest, said: “As of now, H-1B employees in the US and those outside the US with visas and/or approved petitions are safe. The fee is only due when filing new petitions after September 21, 2025. This is a relief after the panic that ensued yesterday — hundreds rushed back to the US, spending huge amounts to arrive before the proclamation came into effect.”

Press Secretary Karoline Leavitt also confirmed that the fee will apply only to new visas, not renewals, and not to current visa holders. "It will first come into play in the next H-1B lottery cycle," she said.

In short, the announcements provide relief for current H-1B employees but signal a blow to future hiring, especially hiring of fresh graduates from US universities or in fields such as research and academia.

Filing of H-1B cap visas is seasonal: the registration window opens in March, the lottery is conducted shortly thereafter, and USCIS begins accepting cap applications in April.

While attorneys have not abandoned plans to challenge the proclamation, they may hold off immediate legal action since current H-1B workers face no travel restrictions. However, if litigation fails in the coming months, tech companies and other employers will have to bear the entry fee when filing H-1B petitions for lottery selectees.

Notably, the press secretary’s statement did not mention ‘cap-exempt’ employers. These include universities, nonprofit entities affiliated with universities, nonprofit research organisations, and governmental research institutions. Their H-1B hires are not subject to the lottery process as these organisations are exempt from the statutory annual H-1B cap of 85,000. Such organisations rely on year-round hiring of professors, researchers, and medical professionals. Starting September 21, any new H-1B visa applications they file will attract the $100,000 fee.

Immigration attorney Ashwin Sharma was blunt: “The proclamation still looms, quietly aligned against cap-exempt institutions that can’t afford a six-figure payout or a political war. These institutions may soon find themselves in the crosshairs. Not because they’re immigrants, but because they’re liberals.”

Cyrus D. Mehta, immigration lawyer, told TOI: “The USCIS memo does nothing for the future of the H-1B program. Cap-exempt employers will be hit with the $100,000 fee when they file new petitions. After next year’s H-1B lottery in 2026, even cap-subject employers will have to pay the same fee. It will be impossible for US employers to hire talented students graduating from American universities. The imposition of this fee will, in effect, kill the H-1B visa program. US companies will instead flee overseas to hire this talent. By imposing this atrocious fee, Trump has killed the goose that laid the golden eggs.”