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Trump’s proclamation takes effect on 21 September 2025. Here’s what it means if you are already in the US on H-1B and plan to travel abroad
Under a proclamation that takes effect on 21 September 2025, employers will now need to pay a $100,000 fee for every H-1B worker entering the US.
US President Donald Trump on Friday announced a sweeping change to the H-1B visa programme, arguing that it has been abused for years by outsourcing companies to replace American workers with cheaper foreign labour. Under a proclamation that takes effect on 21 September 2025, employers will now need to pay a $100,000 fee for every H-1B worker entering the US.
The order has triggered alarm among H-1B holders, particularly those already in the US who may need to travel abroad. The big question is: if you leave the US and come back, does this fee hit you too? Here’s what the proclamation actually says.
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What Exactly Does Trump’s Proclamation Say?
The proclamation restricts the entry of new H-1B non-immigrant workers unless their sponsoring employer pays a $100,000 petition fee. It takes effect at 12:01 am EDT on 21 September 2025 (9:31 am IST) and will remain in force for 12 months, until September 2026, unless extended.
It also directs:
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The Department of Homeland Security (DHS) to block petitions not accompanied by the $100,000 payment for workers outside the US.
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The State Department to prevent misuse of B visas by H-1B beneficiaries with employment start dates before 1 October 2026.
Trump said the measure is necessary because the H-1B programme has been “deliberately exploited” by IT outsourcing companies, leading to wage suppression, layoffs of American workers, and what he described as threats to economic and national security.
If You Leave US And Return, Does The $100,000 Fee Apply?
Yes. The proclamation states that the restriction applies to anyone who “enters or attempts to enter” the US after the rule takes effect.
The text does not explicitly mention “each crossing” or “multiple trips.” What it clearly requires is that the H-1B petition covering the worker’s entry must carry the $100,000 payment.
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If a worker is already inside the US, they are not blocked.
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But if that worker travels abroad and seeks to re-enter, their admission will be judged under this rule. If the petition supporting their visa stamp has not been accompanied or supplemented by the $100,000, they cannot be admitted.
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In practice, this does not automatically mean $100,000 for every single trip. However, because the text ties the requirement to “entry,” employers may need to ensure a compliant petition is in place each time re-entry happens.
What About Visa Extensions Inside The US?
The new fee does not apply to extensions or status changes filed while the worker remains in the country, since they are not “entering” again. However, once that worker travels abroad and seeks to return, the petition will need the $100,000 payment.
Are There Any Exemptions?
Yes. The proclamation states that the restriction “shall not apply to any individual alien, all aliens working for a company, or all aliens working in an industry” if the Secretary of Homeland Security determines that hiring them is in the national interest and does not pose a threat to the security or welfare of the United States.
In practice, this means the Secretary has wide discretion to exempt individual workers, specific companies, or even entire industries. High-skilled or critical roles could therefore bypass the $100,000 fee if they are judged essential.
Why Has Trump Imposed This Cost?
The proclamation argues that the H-1B programme has been “deliberately exploited” to replace American workers rather than supplement them. It cites several trends to justify the new $100,000 fee:
- The foreign share of US computer and math jobs grew from 17.7 per cent in 2000 to 26.1 per cent in 2019, with the number of foreign STEM workers doubling in that period.
- IT outsourcing firms now dominate the programme, with their share of H-1B approvals rising from 32 per cent in 2003 to more than 65 per cent in recent years.
- A study is quoted showing that H-1B “entry-level” jobs come at a 36 per cent discount compared to traditional American roles, creating pressure to shut local IT divisions and outsource instead.
- Companies have laid off thousands of American workers while securing thousands of H-1B approvals. One example cited was a software company that cut 15,000 jobs while receiving approval for over 5,000 H-1Bs in 2025.
- American workers reported being forced to train their H-1B replacements and sign non-disclosure agreements as a condition of severance.
The proclamation concludes that these abuses undermine wages, limit opportunities for new graduates, and even threaten national security. By imposing a steep cost, Trump says companies will be compelled to use the visa only for “the best of the best” foreign workers rather than for bulk hiring at lower wages.
How Long Will This Rule Last?
The restriction is set for 12 months, expiring in September 2026 unless extended. The proclamation requires that, within 30 days after the next H-1B lottery, the Secretaries of State, Labour, and Homeland Security, along with the Attorney General, jointly advise the President on whether to extend or modify it.
What Does This Mean For H-1B Workers And Employers?
For employers, the rule dramatically increases the cost of bringing in workers from abroad, especially if employees need to travel frequently.
For workers:
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Already in the US: You can continue working. But if you leave, re-entry will depend on your petition having the $100,000 payment attached.
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New applicants abroad: Entry is blocked unless your employer pays the fee upfront.
The coming months will show whether exemptions are used widely, how compliance is enforced, and whether the rule remains temporary or is extended.
About the Author
Karishma Jain, Chief Sub Editor at News18.com, writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @kar…Read More
Karishma Jain, Chief Sub Editor at News18.com, writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @kar… Read More
September 20, 2025, 11:24 IST
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