The New H-1B Visa Fee: What Directors Need to Know
The U.S. government has introduced a $100,000 supplemental fee on new H-1B visa petitions, effective September 21, 2025. It’s being called a “tariff on talent.” The policy doesn’t apply to renewals or extensions with the same employer but does affect new petitions, especially those for workers outside the U.S. or changing status through consular processing. A limited national-interest waiver program is expected.
Why It Matters
The H-1B program—long the backbone of high-skill immigration—has been a core channel for technical and professional talent in industries like AI, health care, and engineering. The new fee dramatically raises the cost of entry. For many smaller firms or universities, it’s effectively a hiring veto; for global tech companies, it’s a budget line item and a signal of shifting U.S. policy priorities.
The Arguments
Proponents say the fee discourages misuse, reduces wage arbitrage, and encourages investment in domestic hiring and training. They frame it as economic rebalancing, not restriction.
Opponents counter that it undermines innovation, disproportionately hurting startups, hospitals, and research institutions. They warn of a chilling effect on entrepreneurship, graduate enrollment, and R&D. The U.S. Chamber of Commerce has filed suit, arguing the measure exceeds executive authority and harms competitiveness.
What’s Not Changing
The annual cap of roughly 85,000 new visas (65,000 general and 20,000 for advanced U.S. degrees) remains intact. However, the administration is signaling future changes—like prioritizing higher-wage or higher-skill applications—that could shift who wins the lottery. For now, the fee, not the quota, is the shockwave.
What Boards Should Watch
Talent strategy: Rising barriers could accelerate offshoring and remote work models.
Regulatory fluidity: Legal challenges and carve-outs are expected through 2026.
Sector exposure: Health care, AI, and academia are most at risk.
The Bottom Line
This isn’t just an immigration tweak—it’s a strategic variable in the talent supply chain. Whether it curbs abuse or curbs innovation will depend on how courts, Congress, academia and global markets respond. As with most big policy swings, time will tell—but talent won’t wait.