The White House issued a Presidential Proclamation on September 19, 2025 that could have significant impacts on H-1B employers and beneficiaries, alike. As of 12:01 a.m. EST on Sunday, September 21, 2025 (the proclamation’s effective date), the proclamation restricts the entry of any foreign national into H-1B status without a new $100,000 fee.
Details on how the proclamation will be implemented and/or applied are somewhat unknown and little guidance has been provided by the administration. What seems clear is H-1B workers who are outside the United States on the proclamation’s effective date are likely to see the greatest impact. As early as Sunday morning, failure to pay the new fee could result in denial of attempted entry. H-1B petitions filed for new workers currently outside the United States could potentially be held, pending payment of the $100,000 fee. Extension petitions filed on behalf of foreign nationals already in the United Sates (including change of employer petitions) do not appear to be expressly contemplated by the proclamation and therefore appear not to be subject to the fee. Those persons could theoretically be subject to the fee if they exit the United States and attempt re-entry, however.
Importantly, the proclamation provides for exemptions from the new fee, including on an individual, company, or industry basis, so long as the Department of Homeland Security determines it is in the national interest of the United States and does not pose a security or welfare threat. The proclamation heavily focuses on the negative impacts H-1Bs have had on the IT industry, so it seems likely any exemption are less likely to apply in the IT context. DHS may provide move information on potential exemptions in the coming days.
H-1B employers are encouraged to immediately contact their H-1B employees and advise them not to travel outside the United States. Foreign nationals currently outside the United States should attempt to re-enter the United States as quickly as possible before the effective date to avoid the new entry restriction. The new fee is likely to stall international travel for all H-1B beneficiaries for a period because there is currently no way to pay the new fee and it is unlikely to have been implemented before the effective date.
In addition to the new fee, the proclamation also instructs the Secretary of Labor to initiate rulemaking to revise prevailing wage rules, which is likely to result in higher wage requirements for H-1B petitions in the 2026 H-1B lottery.
Litigation is likely to challenge the proclamation. The Burr & Forman immigration team will continue to monitor for updates and guidance from DHS.
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Anna represents businesses, families, and individuals with the process of obtaining legal immigration status for key employees and loved ones. She interacts directly with the client at every stage of the process, from finding the ...
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Jon Eggert has experience assisting and advising clients on business immigration and labor and employment issues in a wide range of industries, including higher education, healthcare, hospitality, and manufacturing.
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Melissa Azallion Kenny is the Chair of the firm’s Immigration practice group. She has more than 20 years of experience advising clients on business immigration and labor and employment law issues. Ms. Kenny represents clients in ...