By Robert G. Brody and William C. Collins
September 19, 2025, President Trump issued an executive order requiring a $100,00 dollar fee for H-1B visa program applicants. The order was effective on September 21st. The President claims the program for obtaining skilled immigrant workers has been abused to the detriment of American workers.
The H-1B program has allowed businesses to employ skilled foreign workers in specialty occupations since its creation in 1990. To take advantage of this program, employers must first attempt to recruit American workers to these positions and must pay the visa recipients what they would pay Americans in the same role. The H-1B program authorizes 65,000 H-1B visas each year and an additional 20,000 for workers with advanced U.S. degrees.
The visas are heavily relied upon in the tech industry, with Amazon, Tata, Microsoft, Meta, Apple, and Google being the greatest beneficiary of the program in the previous fiscal year. The White House has cited an influx of foreign STEM workers as evidence of the program’s “abuse.” The share of foreign workers in computer and math occupations has grown from 17.7 percent in 2000 to 26.1 percent in 2019.
Until now, employers sponsoring a H-1B worker typically pay anywhere from $2,000 to $5,000, with an additional $1,500 in administrative fees. President Trump’s order imposes a further fee of $100,000. The H-1B worker will not be able to enter the country or start employment until the employer has made this payment. The order does not impact those who are already part of the program or those who have submitted applications before September 21st.
Data from the US Citizenship and Immigration Services (USCIS) shows applications for the next fiscal year were at a four-year low of 359,000. This number may continue to drop following the imposition of the $100,000 fee.
Despite the program requiring companies to seek out American employees first, Trump insists the program has been “deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower skilled labor.” Notably Elon Musk was not in favor of the increased fee, arguing that the program allows the US to attract top talent from across the globe. Despite this U.S. Commerce Secretary Howerd Lutnick stated that “all of the big companies are on board.” While President Trump stated in January that sees “both sides of the argument” he still went through with the order.
On October 3, 2025, a coalition of unions, employers, and religious groups filed a lawsuit to block the order. The lawsuit was filed in federal court in San Francisco and is the first legal challenge the order has faced. The plaintiffs argue Trump’s power to restrict entry of certain foreign nationals does not allow him to override the law which created the H-1B visa program. The order may face further legal challenges on the grounds the fee is arbitrarily high. USCIS and the State Department could also face challenges over their failure to adhere to the proper rulemaking procedures.
Relevant employers should monitor any lawsuits which may impact the H-1B visa program going forward.
Brody and Associates regularly advises management on compliance with the latest local, state and federal employment laws. If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.