Trump’s $100,000 H-1B visa proclamation: Key FAQs and legal uncertainties

On September 19, 2025, US President Donald Trump signed a proclamation requiring a USD 100,000 fee for all new H-1B visa petitions. The move, unprecedented in scope, has triggered uncertainty among employers and applicants, particularly those in India’s IT sector, which has long relied on the H-1B route.

To clarify the scope and implications of the order, the United States Citizenship and Immigration Service (USCIS) and the United States Customs and Border Protection (CBP) issued memoranda on September 20, 2025. These documents attempt to explain who will be affected, what counts as a “new petition,” and how the changes will be enforced.

The following frequently asked questions, originally compiled by Mishita Jethi for Chugh LLP, provide a detailed breakdown of the proclamation and its applicability.

FAQs on the proclamation

Which visa classifications does the proclamation apply to?

This proclamation applies to H-1B visa classification. So far, there is no indication that the proclamation will apply to H-4, L-1, L-2, or any other visa classification—although secondary impact on any visa classification dependent on H-1B cannot be ruled out.

Does the proclamation apply to all H-1B petitions?

As per the memoranda issued by the USCIS and CBP, this proclamation applies to "any new H-1B visa petitions submitted" after 12:01 a.m. EDT on September 21, 2025. "This includes the 2026 lottery, and any other H-1B petitions submitted" after 12:01 a.m. EDT on September 21, 2025.

What does "new petition" mean? Will the proclamation apply to H-1B petitions filed for extending or amending the H-1B status or changing status to H-1B?

It is not entirely clear what "new petition" might encompass. However, the USCIS memorandum specifies that the proclamation "does not change any payments or fees required to be submitted in connection with any H-1B renewals". Thus, presumably, any extensions, amendments, transfers, or change of status for foreign nationals already in the US appear to be exempt from the proclamation at the moment.

Does the proclamation restrict travel into the United States by those foreign nationals who hold a valid H-1B visa?

According to the USCIS and CBP memoranda, the proclamation does not prevent any holder of an H-1B visa from travelling to and from the United States. The memoranda also clarify that the proclamation does not "apply to any previously issued H-1B visas".

Does the proclamation bar issuance of new H-1B visas by United States consulates/embassies?

This does not appear to be addressed by either the proclamation or the memoranda. It is worth noting that, at the moment, there does not appear to be any guidance as to the means and methods of paying this one-time fee on submission of a new H-1B petition. It is therefore not clear whether the fee needs to be paid at the time of filing a new H-1B petition or whether it may be paid at the time of applying for the H-1B visa.

When will the government announce procedures for H-1B fee payments and national interest exceptions?

The administration is expected to release details on both fee payment mechanisms and exemption application procedures in the coming days. However, no official guidance has been issued at the time of this publication.

Is the new proclamation likely to face legal challenges?

Yes. Lawsuits are anticipated in the near term, with plaintiffs expected to seek emergency stays to block implementation of the proclamation. While such litigation is highly likely, the timing and outcome of any court-ordered injunction remain uncertain.

India’s IT industry reacts

Indian IT services companies, which account for the largest share of H-1B visa holders, are bracing for the fallout. Nasscom, the industry body, has voiced concern over the steep hike, noting that it could restrict mobility of skilled talent and raise operational costs for firms. While larger players may absorb the impact through localisation and automation strategies already in play, mid-sized and smaller firms fear losing competitiveness in the US market.

Industry observers also expect legal challenges to the proclamation, which could delay or dilute its implementation. Until then, companies and professionals alike remain in limbo, awaiting clarity on payment procedures, exemptions, and possible court interventions.

Attribution

This FAQ was originally authored by Mishita Jethi, Chugh LLP, and published on September 22, 2025 at chugh.com