Ultimate impact still to be determined – will undergo certain legal challenges.

On Friday, September 19, 2025, President Trump issued a proclamation that would require employers to pay a $100,000 fee for certain H-1B petitions. If the fee is not paid, United States Citizenship and Immigration Services (USCIS) would not adjudicate the petitions. When the proclamation was issued, there was much confusion about who it would apply to, and when it would apply. Here are the key takeaways your organization needs to know at this time.

Effective only for post-Sept. 20 H-1B filings. The proclamation appears to be targeted towards new H-1B petitions for individuals who are currently outside of the United States and not currently in H-1B status. Since the initial issuance of the proclamation, USCIS has issued some guidance that indicates that the proclamation only applies prospectively to petitions that have not yet been filed and would only apply to petitions filed after the effective date and time of 12:01 a.m. on September 21, 2025.

H-1B Visa holders and prior filings remain valid. The proclamation should not apply to individuals in H-1B status who are the beneficiaries of petitions that were filed prior to the effective date of the proclamation, are the beneficiaries of currently approved petitions, or are in possession of validly issued H-1B non-immigrant visas.

No travel impact for current H-1B holders. The proclamation does not impact the ability of any individual currently in H-1B status to travel to or from the United States.

Unclear impact on change of status petitions. It does not appear that the fee will impact individuals who file change of status petitions inside the United States, though that is not definitive, and it may only apply to new H-1B petitions for individuals who are outside the United States and not currently in H-1B status.

Exactly how the fee is to be paid, and who will collect it, has not yet been determined. The proclamation does allow for exceptions for an individual, a company, or an industry, if the Department of Homeland Security determines that it is in the national interest of the United States and does not pose a threat to national security or welfare. How those exceptions will be determined or granted is unclear at this time.

The proclamation expires in 12 months, but could be extended. It is expected that there will be legal challenges to the proclamation filed this week.

Please reach out to our Labor, Employment and Immigration team to discuss how the proclamation will impact your workforce.