The U.S. H-1B visa program has historically provided Indian professionals with a pathway to work for U.S. companies, especially in technology-related occupations. But recently introduced policies such as the significant increase in fees ($100,000 required by Presidential Proclamation) have created uncertainty and extreme stress because of their financial impact. Young startups are finding this to be an especially difficult time in hiring skilled immigrant workers with high potential from India.
In the U.S. work authorization system there are specific jobs. For example, recent presidential proclamations created an additional fee of $100,000 for new H-1B petitions as of September 21, 2025 for certain applicants, which has completely changed how businesses calculate the costs associated with hiring foreign talent. In particular, U.S. Citizenship and Immigration Services (USCIS) emphasized that this fee will not apply to those already in the country needing an extension, amendment, or a change of status such as transitioning from F-1 status to H-1B status. The payment will almost entirely be for new foreign applicants that are currently outside of the U.S. and had not received an approved H-1B application when they formally filed their petition for visa sponsorship.
This policy is seen as a formidable hurdle to innovation by most industry experts while simultaneously posing a significant risk to the competitiveness of the U.S. in the global economy due to the pending legal challenges to the policy’s validity.
The Burden on Startups: H-1B Costs for Employers
Small businesses are already burdened by a significant cost due to the new H-1B visa fee hike increase for employers. Since large corporations have substantial financial resources and can easily absorb the costs of hiring H-1B visa holders, this fee increase is less of a burden on them. The opposite is true for startups and SMEs (small and medium-sized enterprises).
Startups typically operate with extremely limited budgets and depend heavily on early-stage financing and investment to continue operations. It is vital that a startup hires talented individuals (most likely engineers/developers) as quickly as possible and with unique skills to stay in business, grow, and succeed. For this reason, the costs associated with an unprecedented increase in fees associated with H-1B visas pose an enormous risk to these companies. Ultimately, the increased fees may prevent a startup from making a new hire and result in missed deadlines, increased difficulty in obtaining additional financing, or even complete closure of the business. According to experts, small, developing companies will bear the brunt of the new fee.
The Financial Chasm: Before this Proclamation, the total government filing and legal costs for an H-1B petition ranged from approximately $2,000 to $5,000. The new $100,000 payment for a covered new petition radically changes this cost base for new international hires.
Talent Scarcity: When the potential H-1B visa fee hike makes the sponsorship of talent from abroad prohibitively expensive, small businesses are forced to look domestically, even when the needed, highly specialized skills might be more readily available overseas. This not only stunts the growth of the startup but also impacts the overall innovation pipeline in the U.S.
The Unavoidable Investment: Beyond the $100,000 payment, H-1B costs for employers already include a substantial and rising list of mandatory fees, representing the non-negotiable H-1B employer compliance cost:
Form I-129 Filing Fee: $780 standard ($460 for small employers/non-profits).
Asylum Program Fee: $600 standard ($300 for small employers/non-profits).
Fraud Prevention and Detection Fee: $500 (for initial and change of employer petitions).
ACWIA Education and Training Fee: $750 or $1,500 (depending on the employer size).
The optional but common Premium Processing Fee ($2,805) is often added to these costs. This complex and expensive structure already represents a high U.S. work visa processing cost that small businesses must absorb.
The Impact on Skilled Immigrants
The increased U.S. work visa processing cost and regulatory uncertainty have immediate and long-term implications for skilled immigrants, particularly those from India, who remain the largest group of H-1B recipients, accounting for over 70% of approvals.
More Barriers to Entry: Most H-1B holders (those on F-1 visas who graduated from a U.S. college) do not have to pay the $100,000; however, this policy affects most of the first-time applicants negatively. Many small employers are discouraged from hiring any foreign employee due to the added risk and complex nature involved. Thus, finding highly talented Indian professionals outside of the U.S. has become more difficult.
Increased Confusion: Following the first announcement of this fee increase, many current H-1Bs and their families were worried. As a result, many canceled their international travel because they feared that they would be stranded overseas with no way back. The uncertainty surrounding this situation is another example of how unstable the U.S. immigration system is regardless of whether or not this fee will be implemented as announced.
Moving Toward Stability & Control: One area in which this policy will have the most significant long-term effect is that increasing numbers of applicants are looking for alternatives to gain permanent residency. Many professionals who apply for Green Cards are now applying for categories such as EB-1A (Extraordinary Ability) and EB2-NIW (National Interest Waiver). The increase in applications within these categories reflects the need for stability and self-determination in regard to their employment status and sponsorship; the current lottery system has created higher expenses, increased volatility and decreased mandatory sponsorship by employers. More recent data show a substantial increase in
Global Alternatives: As the H-1B visa fee hike creates barriers in the U.S., other nations are launching aggressive campaigns to attract this skilled talent. Countries like Canada and the UK are publicizing new initiatives and visas specifically to capitalize on the highly skilled professionals who are discouraged by the rising H-1B application cost breakdown and unpredictability in the United States.
The H-1B visa impact on the business community and workers alike is a complicated blend of financial burden for businesses and uncertainty around career paths for employees. As a result of this mix, many businesses and workers are rethinking their long-term business strategy regarding working in the U.S.
How FRR Immigration Can Assist with H-1B Issues
At FRR Immigration, we have observed how the recent H-1B visa fee hike and the resulting increase in U.S. work visa processing cost have complicated and inflated the overall expense of obtaining a U.S. work visa more than ever before.Our goal is to assist both businesses and skilled foreign nationals through strategic and transparent consultation to help show them how to succeed in this new working environment.
FRR Immigration will support our clients in navigating the new compliance and regulation requirements imposed on employers as a result of the new USCIS regulations as follows:
Compliant and Accurate Cost Evaluation and Determination (USCIS):
FRR Immigration will provide our clients with an accurate and detailed assessment of all costs associated with obtaining an H-1B visa for an employer, including the most current USCIS filing costs and the appropriate bases for the $100,000 Proclamation Fee. This information is especially beneficial for Small and Medium-Sized business (SME’s) as they can better plan their budgets and know the total costs for being compliant with the H-1B process for employing that particular employee.
Using the results of the compliance and cost evaluation, the company will know whether the employee will be Subject to the $100,000 Proclamation Fee (i.e. not currently in the U.S., not a visa holder) or Exempt from the $100,000 Proclamation Fee.
Advanced Visa Pathway Counseling:
Due to the fluctuations of the H-1B visa, we help clients find more stable and safer methods of obtaining permanent residency. This includes an analysis of eligibility for both the EB-1A (Extraordinary Ability) and EB2-NIW (National Interest Waiver) Green card categories because these categories do not have a cap and therefore offer the quickest way to obtain a Green card through the H-1B lottery and for long-term certainty.
We also provide a comprehensive evaluation of other employment-based immigration options, including O-1 (Extraordinary Ability) and L-1 (Intra-Company Transferee) visa classifications. These classifications will provide a more predictable and immediate means of obtaining a work visa for specialized occupations, compared to the H-1B visa.
Careful Completion of Applications And Compliance Management:
We will ensure that employers’ applications meet all government standards for filing an H-1B application and that they do so in a timely manner to minimize the chance of costly delays or denials, particularly in light of the increased scrutiny that has been placed on applications since the implementation of the new policy. The extensive documentation we prepare satisfies the level of information required for a “Specialty Occupation.”
Our expertise also supports the employer’s compliance with all required Labor Condition Attestations [LA (I)] as a significant factor in determining the employer’s total compliance costs related to the H-1B visa and to protect them against the potential for an audit and penalties as a result of non-compliance.
Monitors Litigation And Responds To Lawsuits:
FRR Immigration closely monitors the active litigation surrounding the $100,000 fee litigation and advises current clients throughout the litigation process. As such, we advise clients to make sure that any future filings are appropriately drafted based upon current regulatory guidance and case law, thereby lessening their liability for any potential risks presented by the litigation.
FRR Immigration also assists clients with collecting documents and evidence for requests for National Interest Exceptions from the $100,000 fee requirement, which could provide an employer with relief from the requirement in the extremely rare instance when a case qualifies as a high-value case.
Navigating Your U.S. Immigration Strategy
As a result of increasing processing fees associated with U.S. work visas, employers must seek a partner to strategically guide them through the visa process. Employers should not allow the increased H-1B fee to deter them from growing their career or expanding their business within the U.S. Whether you are an employee seeking to establish stable employment or an employer experiencing increased H-1B visa cost increases, FRR Immigration is available to provide you with the important legal expertise you will require.
If you would like to speak to one of our representatives about your immigration needs, please call us for a free consultation and we will work with you to develop an immigration strategy that meets your needs in a timely, compliant, and cost-effective manner.
Frequently Asked Questions (FAQ)
1. What is the $100,000 H-1B visa fee hike, and who is affected?
A: It is a $100,000 payment mandated by a Presidential Proclamation that primarily affects new H-1B applicants who are outside the U.S. and do not possess a valid H-1B visa when the petition is filed.
2. Does the $100,000 fee apply to F-1 students changing to H-1B status?
A: No, USCIS has clarified that the fee generally does not apply to individuals already in the U.S. who are approved for a change of status to H-1B (like F-1 OPT students).
3. What is the total H-1B application cost breakdown for a large employer?
A: The total H-1B application cost breakdown can include the I-129 fee ($780), Asylum Fee ($600), Fraud Fee ($500), ACWIA Fee ($1,500), legal fees, and, if applicable, the $100,000 Proclamation payment.
4. How is the H-1B visa impact driving demand for other visas?
A: The high cost and uncertainty of the H-1B process are causing a documented surge in interest in stable, Green Card options like the EB-1A and EB2-NIW.
5. What is the main concern for startups regarding H-1B costs for employers?
A: The potential exposure to the $100,000 payment, combined with high mandatory H-1B employer compliance cost, makes the hiring of highly specialized international talent financially prohibitive for most small businesses.
