The headline in plain language
The White House announced a new one time fee of $100,000 tied to new H 1B cases. Early reporting and clarifications indicate the fee is targeted at new petitions filed from outside the United States, is one time rather than annual, and does not apply to existing H 1B holders or routine extensions and transfers. Several officials and observers also expect legal challenges that could affect timing and enforcement.
This is a substantial change. For employers that rely on global talent, the additional $100,000 per new entry can alter budgets and staffing plans. Markets and hiring leaders are already reassessing relocation dependent roles while waiting for guidance from federal agencies and courts.
What the H 1B program is and how it works
The H 1B is the primary United States work visa for “specialty occupations” such as software engineering and data science. It operates under an annual cap of 85,000 new slots, divided into 65,000 regular and 20,000 for advanced degree holders from United States institutions. Certain employers university and research related are cap exempt. Selection uses electronic registration and a lottery in heavy demand years, which is typical.
Separate from the new fee, USCIS had already modernized the process for recent cycles. The electronic registration fee increased from $10 to $215 and the system moved to a beneficiary centric design to reduce duplicate filings and fraud. Those changes are independent of the new $100,000 fee and remain in place.
What changed now and why it matters
Multiple outlets and legal summaries report that the administration introduced a mandatory $100,000 one time payment for new H 1B petitions filed on or after September 21, 2025, particularly affecting petitions started from abroad. The White House press office clarified that the fee is not annual and not retroactive for existing visa holders. Legal pushback is expected, and timelines may shift pending lawsuits and agency guidance.
For employers, the near term implication is straightforward. A single new H 1B hire from outside the United States would carry an additional $100,000 cost on top of normal filing, legal, and premium processing fees. That is a material shock for startups and SMBs and a meaningful budget item even for large enterprises. Analysts note this could reduce monthly inflows of new workers if the fee holds.
What the market is signaling
Coverage highlights concern in technology and consulting, investor commentary about competitiveness, and potential knock on effects for international students who plan on the OPT to H 1B pathway. Some large employers reportedly advised caution on international travel for employees on H 1B until policy and guidance stabilize. Meanwhile, markets in India and broader Asia have reacted to the news as firms consider alternative hiring and delivery plans.
A quick refresher on costs before the new fee
Before this change, a cap subject H 1B case already involved several cost elements. Employers typically budget for the USCIS filing fees, optional premium processing, attorney fees, and internal time for petition preparation. The $215 electronic registration fee is a small piece of that total. The new $100,000 fee, if enforced, would sit on top of those costs and apply to new petitions, according to current reporting.
Because immigration policy can evolve through proclamations, rules, and agency memos, employers should anticipate further clarifications from DHS and the Department of State, as well as the possibility of injunctions that delay or limit enforcement while courts evaluate the policy.
Who is most affected by the new fee
Startups and SMBs are the most exposed. Many rely on targeted international hires for specialized skills but cannot justify a sudden $100,000 per hire cost. IT services and consultancies may also feel pressure since a high fee multiplies across larger intakes. Universities and research organizations could be less impacted if cap exempt and depending on how agency guidance treats their petitions, but they will still monitor policy details closely.
International student pathways could see second order effects. Prospective students weigh the probability of securing an H 1B against the cost and complexity employers face. If employers pull back on new H 1B filings, this could dampen demand for some graduate programs tied to United States work outcomes.
How this interacts with remote hiring
The fee encourages a sharper distinction between roles that must be United States based and roles that can be remote. For positions that can be executed remotely with clear collaboration windows, documentation standards, and security practices, many employers will pivot to nearshore or offshore solutions to maintain delivery speed and manage risk while litigation and guidance evolve.
In practice, that means hiring in Brazil will draw more attention for engineering roles. Software engineers in Brazil can operate as contractors in Brazil using a service based model, or under local employment structures, with strong time zone overlap for real time collaboration with United States teams. Mature hubs such as São Paulo, Recife, Porto Alegre, Belo Horizonte, Florianópolis, and Manaus offer depth in modern stacks and senior leadership. If you are new to the market, start with a primer on hiring models in Brazil, then compare options in the best hiring model for a remote team in Brazil, and study city level patterns in where to find top tech talent in Brazil.
Clarifying common questions and early misconceptions
Some headlines implied the new amount could be annual. Official statements and press briefings indicate it is a one time supplemental fee associated with new petitions from abroad. Other questions asked whether existing H 1B holders changing employers would be subject to the fee. Current reporting suggests the focus is on new cases, but agencies will need to publish guidance to remove ambiguity. Always validate with counsel before acting.
There has also been confusion around the relationship between the new fee and the 85,000 annual cap, as well as the $215 registration fee. Neither is changed by this move. The cap remains 65,000 plus 20,000 for advanced degree holders, and the $215 registration fee is a separate step introduced by USCIS modernization. The $100,000 supplement would add to the cost stack for new cases if and when enforcement begins.
Short term actions for United States employers
- Inventory roles by legal necessity of presence. Identify which roles truly require a United States location and which can be performed remotely without compromising security, compliance, or customer experience.
- Resequence hiring. For relocation dependent roles, consider deferring start dates until guidance clarifies or pursue cap exempt options with qualifying institutions.
- Budget scenarios. Model headcount plans with and without the $100,000 cost. Include sensitivity by business unit and critical path projects.
- Communication plans. Prepare clear updates for current H 1B employees and candidates about travel, timing, and contingencies to reduce anxiety.
- Remote contingencies. Where appropriate, accelerate nearshore pipelines in Brazil and Latam to hedge uncertainty and retain velocity on product roadmaps.
Medium term scenarios to monitor
- Litigation and injunctions. Watch for court filings and any temporary restraining orders that could pause enforcement while constitutional questions are reviewed.
- Agency guidance. Track memos from DHS, USCIS, and DOS clarifying scope, exceptions, and edge cases.
- Employer policy shifts. Expect more remote first role design, increased use of cap exempt opportunities where mission aligned, and deeper investment in distributed team practices.
The Brazil and Latam angle in depth
Nearshore hiring is not only a cost lever. It is a continuity strategy when immigration timelines become unpredictable. Recruitment agency in Brazil partners can help define the correct engagement model from day one. CLT W2 style employment provides statutory benefits and a traditional employee experience. PJ 1099 style contractor arrangements emphasize deliverables and move quickly when supported by compliant contracts and reliable payroll operations.
Process quality is what separates smooth integrations from painful ones. Before booking live interviews, validate English and collaboration with an asynchronous prompt that includes one written design trade off and a 90 second voice or video sample about a recent ticket. Confirm daily overlap and documentation habits. Run two short calls on different days to verify availability and responsiveness. Collect recent manager references focused on ownership, communication, and delivery patterns. Avoid sharing wide salary ranges early to prevent high anchors; request the candidate target by contract type in a single currency and anchor offers to impact and scope. For market context, see the analysis on the cost to hire a software engineer in Brazil and the broader pillar reference on hiring software engineers in Brazil and Latam.
FAQ
Is the $100,000 fee a one time charge or an annual payment?
Reporting and official clarifications describe it as a one time supplemental fee for new H 1B petitions filed from abroad, not an annual payment. Final details depend on agency guidance and litigation outcomes.
Does the new fee affect existing H 1B holders or routine extensions and transfers?
Current reporting indicates it targets new cases rather than existing workers. Extensions and transfers for people already in the United States are not the focus of the announced fee, pending formal guidance.
Does this change the 85,000 annual cap or the $215 electronic registration fee?
No. The cap and the $215 registration fee remain as before. The new fee would be in addition to existing steps if and when enforced.
How does this impact remote hiring plans?
Roles that do not require presence in the United States may shift to remote nearshore to avoid the new cost and uncertainty. Expect more demand for contractor models and distributed teams while courts and agencies clarify scope and timing.
Will there be exemptions for certain sectors?
Coverage mentions discussions about possible exceptions in critical areas, with healthcare often cited in early commentary. Wait for agency guidance to confirm any exemptions.
Sources to monitor as this evolves
- USCIS official resources on H 1B registration and fees. USCIS
- National Law Review and attorney memos on employer considerations. natlawreview.com
- LiveMint and similar markets coverage tracking business reaction. mint
- Times of India for analyst estimates and international market response. The Times of India
Brazilian business media such as Exame for regional analysis and impact perspectives. Exame
