The US is at the center of considerable immigration changes, and businesses are faced with some tough decisions in response to the new H1-B fee in 2025. In a bold move that has sent ripples across corporate boardrooms, a new executive order signed in September 2025 has imposed a hefty $100,000 fee on new H-1B visa petitions.
While the exact details of the immigration council’s H-1B fee are still being sorted out, the decision will leave a lasting impact on businesses that rely on foreign talent. The significant H-1B costs will likely hit startups and small businesses the hardest, making it crucial for HR professionals to have a clear plan for hiring talent in the coming years.
The new H-1B fee in 2025 sets the price of applications at $100,000, marking a notable increase in expenses for startups and small businesses. (Image: Freepik)
Understanding the Impact of the New H-1B Fee for 2025
The H-1B visa, established around 1990, has allowed employers to hire highly skilled foreign workers, particularly for “specialty occupations” where local talent is insufficient. With an annual cap of 85,000 visa approvals and demand far exceeding supply, the program has been a reliable lifeline, particularly for tech giants and healthcare leaders, who recruited experts to enter the US to support their business.
In 2025, the White House plans to require businesses to pay a $100,000 fee when they submit a petition for new H-1B visas for workers. Dubbed a measure to curb the abuse of the visa system and the displacement of American workers by lower-paid foreign workers, the policy marks a significant change in how US businesses can access global talent.
After a recent incident of arrests of South Korean workers, the president of the region warned that businesses may hesitate to invest in the US if the visa system is not reformed. The episode sparked significant conversation regarding the state of legal immigration in the US, and the new H-1B application fee changes have further shed light on the debate.
H-1B Changes Explained: What Businesses Need to Know About Hiring External Talent
There are two major changes to the H-1B visa fee policy in the US. For one, the recent executive order levies a $100,000 fee for applications for H-1B visas. Exceptions may apply as determined by the Secretary of Homeland Security, but for the most part, businesses both big and small can expect to pay the substantial fee for the employees it hopes to bring in to work locally.
The increased H-1B payment requirement only applies to future applicants, which means that those in the US who are currently on the H-1B visa will not face any immediate issues unless further changes are announced to the program.
The new H-1B fee for 2025 aside, orders from earlier this year also discussed a shift away from the lottery system to prioritize applications from high earners. This wage-weighted system will allow higher-paid applications to get preferential entry into the visa pool. This means that businesses that want to bring in workers will not only have to pay the heavy H-1B 100k fee but also promise the workers substantial pay in order to secure approval.
How the H-1B Fee Impact Startups and Small Businesses
Experts have warned that the new H-1B fee proposed in 2025 could lead to significant brain drain, with talent eyeing other regions like Canada and the UK when looking for employment. The shrinking of the labor force could also prompt big businesses to operate offshore to ensure their desired talent finds its way to the operations.
That said, large corporations such as Amazon, Microsoft, Google, and Meta, which are among the top H-1B sponsors, could absorb the costs and still afford to bring in the talent they desire.
The H-1B fee will impact startups and small businesses more significantly. From the perspective of HR and hiring, the fees will greatly inflate the total cost of the hire. There are already considerable expenses to take into account, such as the relocation fee and other expenses that come with the movement of labor. Now, the H-1B application fee, increased wages, lottery registrations, and other expenses could make the H-1B visa an inaccessible opportunity for some.
With the H-1B Costs Going Up, HR Teams Will Have to Rethink Hiring Strategies
The H-1B visa is a vital tool in industries that require highly specific skills and talents to complete their operations. With the proposed H-1B visa fee policy in the US, HR teams will be required to coordinate with executives to run a cost-benefit analysis of their hiring systems to re-evaluate just how they will locate and support such talent.
It is imperative to audit the organization and its talent needs to identify areas where the policy change will have the biggest impact, and explore other visa channels that might still be available to use. With the rise of remote work systems, operating across borders is not unheard of, and there are ways to still capitalize on talent from other regions if deemed necessary.
Upskilling and Reskilling Could Be the Answer to Visa Changes
The new H-1B fee in 2025 is intended to encourage businesses to look locally for the talent they require. This presents an opportunity for HR teams to diversify their sourcing and ramp up talent development through apprenticeships and reskilling programs.
It is also possible to send workers out to other regions for training to ensure they can come back and share their expertise with the organization.
Re-Evaluate Your Hiring Strategy in 2025
For organizations that are determined to hire external talent, budget evaluations and reallocations will have to be a priority, with a sufficient buffer of monetary resources allocated to the hiring of said talent. With the updated H1B payment requirement laid out, there is still some uncertainty surrounding the final state of this particular visa system.
As a result, hasty decisions are best avoided, although preparations for necessary adjustments might be a good place to start work at once.
What do you think of the new H-1B fee announced in 2025? How will this impact your hiring strategy? Let us know. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.