Current Analysis of the H-1B Entry Restrictions and Application of the $100,000 Fee

As of September 21, 2025, this alert reflects our interpretation of the Administration’s Proclamation impacting entry into the United States of H-1B workers. It is based on the Proclamation, accompanying memoranda, and Frequently Asked Questions (FAQs) from the relevant government agencies. As additional clarifications and potential litigation unfold, our guidance may change.

Moreover, because further changes are expected, we recommend H-1B workers who are outside of the United States discuss the timing of returning to the United States with their employers. We also recommend that H-1B workers in the United States refrain from international travel until more crystallized guidance and implementation of the Proclamation occurs.

We will continue to monitor these developments closely and provide updates as new information becomes available.

Relevant Sources

• On September 19, 2025, President Trump published a Proclamation titled, “Restriction on Entry of Certain Nonimmigrant Workers.”
• On September 20, 2025, USCIS released a memorandum seeking to clarify the Proclamation.
• Later that day, CBP also released a memorandum.
• On September 21, 2025, the DOS and the White House released FAQ pages related to the Proclamation.

At a Glance

The below information summarizes the current impact of the government’s announcements, with a focus on what remains outstanding to learn, particularly for H-1B cap-exempt employers like universities and hospitals. We continue to seek clarification from the government on issues that impact H-1B employers and their employees on a number of issues discussed below.

What We Know

Impact of H-1B Proclamation

What We Don’t Know

While the proclamation and USCIS memorandum provide important initial guidance, several critical issues remain unresolved.

• Cap-Exempt Institutions:H-1B cap-exempt organizations are not subject to the annual H-1B quotas. Cap-exempt institutions include universities, nonprofit hospitals, and nonprofit research organizations. While there has been speculation that USCIS may limit the $100,000 fee to cap-subject petitions filed during next year’s H-1B lottery cycle, the guidance released so far does not confirm this interpretation. As such, currently, cap-exempt institutions are subject to the new $100,000 requirement for petitions filed on or after September 21, 2025, before an H-1B beneficiary who is outside of the United States enters the United States or if an H-1B beneficiary departs the United States and seeks reentry.
• Change or Amendment of Status: It is unclear whether the new $100,000 fee will apply when an employer files an H-1B petition to change status of a nonimmigrant to H-1B status or amend the terms of an existing H-1B beneficiary’s employment. Importantly, the H-1B employer would not be required to show proof of payment of the $100,000 fee until the H-1B beneficiary seeks to enter the United States.
• Change of Employer: Similarly, it is unclear if the fee will apply when an H-1B beneficiary seeks to move to a new employer sponsoring their H-1B status. Again, the H-1B employer would not be required to show proof of payment of the $100,000 fee until the H-1B beneficiary seeks to enter the United States. 
• Extensions of Status: There is ambiguity between the Administration’s different guidance documents as to whether H-1B renewals will be subject to the fee. 
• National Interest Exemptions: The Proclamation includes reference to national interest exemptions for certain industries and occupations. The government has yet to announce what industries or occupations are covered by these exemptions, or how organizations or employers may apply for an exemption to avoid payment of the $100,000 fee.
• Payment of the $100,000 fee: The government acknowledges that they have not provided instructions on how an employer can pay the fee for affected H-1B petitions.

Common Questions and Answers

1. Does this affect individuals who already hold an approved H-1B petition?
   • No. Individuals with an approved H-1B before September 21, 2025, are not impacted by the new fee requirement.
2. If an H-1B petition was filed before September 21, 2025, but is still pending, is it impacted?
   • No. Petitions filed before the effective date continue to be processed under the old rules, even if not yet decided.
3. Does this apply to extensions of H-1B status?
   • Unclear. The USCIS memo does not specify whether the $100,000 fee applies to extensions of H-1B status. Further guidance is expected.
4. Does the $100,000 fee apply if an individual seeks to change H-1B employers?
   • Unclear. The current guidance does not confirm whether the new fee applies in change-of-employer cases.
5. If an individual seeking to change status after September 21, 2025, leaves the United States, would they be subject to the fee?
   • Likely yes, such an individual could be interpreted to owe the $100,000 fee. Individuals who are in the U.S and plan to change status should exercise particular caution when considering international travel and confer with their employers before traveling.
6. Is there any chance certain groups will be exempted?
   • Yes. The Administration has authority to create exemptions for specific industries or occupations, and litigation may also result in clarifications or exemptions.
7. What does this mean for the 2026 lottery?
   • The White House FAQ explicitly states, “This includes the 2026 lottery.”
   • As mentioned above, USCIS might waive the fee for traditionally cap-exempt institutions. This prognosis is unconfirmed. 
8. I am an H-1B worker. Can I help my employer pay the $100,000 fee?
   • Employers, not employees, are required to cover the cost of payment of the fee. We are seeking clarification on whether any H-1B workers may cover or contribute to such a fee payment.
9. Are Canadians, or any other nationality, exempt from these H-1B changes?
   • No. As of right now, there are no country-specific exemptions.

Conclusion

We recognize the disruption these developments have caused for H-1B employers and employees. Our Firm is actively engaging with the Trump Administration to underscore the vital contributions of H-1B professionals to the U.S. economy, in the national interest.

While we seek further clarification, we recommend employers consider sharing communications with their H-1B sponsored population.

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Please contact your Klasko attorney with regards to any urgent international travel questions, to develop a tailored plan. 

The material contained in this alert does not constitute direct legal advice and is for informational purposes only. An attorney-client relationship is not presumed or intended by receipt or review of this presentation. The information provided should never replace informed counsel when specific immigration-related guidance is needed.

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