On September 19, 2025, President Trump issued a proclamation restricting the entry of certain H-1B specialty occupation workers into the United States. The restrictions are based upon a new $100,000 fee for H-1B petitions. “Homeland Security shall restrict decisions on petitions not accompanied by a $100,000 payment for H-1B specialty occupation workers . . . who are currently outside the United States.” At present, it is unclear how this newly required fee will impact pending and future H-1B petitions.
While the language of the Proclamation is broad, employers should be reassured that this action does not end the H-1B program. The Proclamation does, however, pose risk to current and prospective H-1B visa holders currently outside of the United States.
We address below the key points and how they may impact H-1B petitioners and their people.
Key Provisions of the Proclamation
- Effective Date: This Proclamation applies only to entries on or after September 21, 2025.
- $100,000 Entry Fee: As of the Effective Date, H-1B petitions filed for workers outside the U.S. must include a $100,000 payment for the individual to be admitted.
- Duration: The restriction is temporary (12 months) and set to expire September 20, 2026, unless extended.
- National Interest Exemptions: The Department of Homeland Security (DHS) may exempt individual cases, companies, or even entire industries if the employment of H-1B workers is in the “national interest.” While it is not yet clear how the administration will define this standard, employers should begin considering how their business objectives, projects, or industry contributions align with U.S. economic, technological, or security priorities. We encourage employers to work with outside counsel to proactively frame these arguments and identify how their organization’s hiring of H-1B workers is in the national interest.
- Inside-the-U.S. Filings Unaffected: The restriction only applies to individuals entering the United States from abroad after the effective date of the Proclamation. The Proclamation states: “The restriction on entry pursuant to section 1 of this Proclamation shall apply only to aliens who enter or attempt to enter the United States after the effective date of this Proclamation.” Based on the plain language of the Proclamation, it appears that extensions, amendments, and transfers for H-1Bs already in the United States continue as usual. For this reason, we recommend that H-1B workers presently in the United States not travel internationally.
- No Retroactivity: Pending or approved petitions for H-1B workers who remain in the United States and do not travel abroad after the effective date will not be subject to the new payment.
What This Means for Employers
Although there is significant uncertainty and many open questions about how this Proclamation will be implemented in practice, several key takeaways are already clear—most importantly, international travel is not advised at this time. In addition, employers should keep the following points in mind as they evaluate workforce planning and immigration strategies.
1. Your Current H-1B Workforce Should Remain Stable
- H-1B employees already in the U.S. can continue working.
- Employers can still file extensions, amendments, and change of employer petitions without paying the fee.
2. New H-1B Cap Cases Are Still Possible
- The FY27 H-1B lottery will proceed in March 2026.
- The Proclamation does not cancel the H-1B program or cap selection process.
3. Exemptions Are Available
- DHS has broad discretion to exempt: (1) Critical industries (e.g., healthcare, research, defense, financial services) and (2) national interest hires (e.g., roles essential to innovation, competitiveness, or economic security).
- We expect agency guidance to outline categories of likely exemptions.
Additional Information
Although there are a number of areas where we are still awaiting clarification from the agencies, there are several considerations that employers can begin evaluating now. Below we outline points that are already clear and that may affect different types of employers in distinct ways.
- No Explicit Carve-Out for Cap-Exempt Employers: Universities, nonprofit research institutions, and other traditionally cap-exempt entities are not specifically exempted in the text of this Proclamation. While there is no specific carve out for cap-exempt industries, it appears that such industries can be considered for exemption from the additional entry fee under the “national interest” exemption.
- Other Visa Categories: The Proclamation directs the Department of State (DOS) to prevent the misuse of B visas by H-1B beneficiaries, but it does not create new restrictions at this time. While the language is narrow, it signals closer scrutiny of certain practices, including changes of status from B-1/B-2 to H-1B within the United States and use of the “B-1 in lieu of H-1B” provisions. Employers should be mindful that these categories may face heightened enforcement or additional restrictions in the future.
- Rulemaking Forthcoming: In addition to the temporary entry restrictions, the Proclamation directs the Department of Labor (DOL) to propose new regulations to raise prevailing wage levels and the Department of Homeland Security to explore prioritizing the admission of higher-paid and higher-skilled H-1B workers. While these changes are not immediate, they signal longer-term policy shifts that could impact future H-1B recruitment and program planning.
- It remains uncertain whether individuals with already approved H-1B petitions who travel abroad for visa stamping or reentry on or after September 21, 2025, will be subject to the $100,000 fee. Until further agency guidance is issued, employers and employees should plan conservatively and limit international travel.
Our Next Steps
We are carefully evaluating the scope of the Proclamation to identify strategies that minimize disruption for employers and employees, including:
- Prioritizing extensions and amendments for H-1B workers already inside the United States.
- Assessing potential national interest arguments that may qualify employers or employees for exemptions.
- Monitoring forthcoming rulemaking from DOL and DHS on prevailing wage levels and prioritization of higher-paid H-1Bs.
- Advising clients on filing strategy and travel planning to reduce the risk of unnecessary costs or interruptions.
- Actively monitoring developments including potential litigation challenging the Proclamation.
We recognize this Proclamation raises immediate questions for employers and employees alike. While details regarding the specific implementation of the Proclamation will be forthcoming from relevant agencies, the H-1B program remains in place, most in-country filings continue as usual, and multiple paths, including potential national interest exemptions, may mitigate impacts. And notably, as we have seen in similar policy changes, we do anticipate that it may take a period of time for the Department of State and the Department of Homeland Security to implement procedures for enforcement. Our team is tracking agency guidance and rulemaking closely and will issue updates as soon as there are material developments.
If you have time-sensitive travel or filing decisions, please contact your Klasko attorney to develop a tailored plan (e.g., whether to defer travel, pursue an in-country strategy, or prepare a national interest showing).
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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