What Is H1B Visa? Everything You Need to Know About the New $100,000 Fee, Rules, and Exemptions
The question of what is h1b visa has resurfaced in the spotlight after major policy changes introduced in September 2025. The h-1b visa is one of the most sought-after work visas in the United States, primarily used by technology companies and other employers in specialized industries to hire skilled workers from abroad. However, a new executive proclamation has reshaped the visa landscape with the introduction of a $100,000 application fee for new applicants. This article explains the details of the visa, its requirements, the new rules, and the potential impact on businesses and workers.
What Is the H-1B Visa?
The h-1b visa is a non-immigrant work visa that allows U.S. employers to hire foreign professionals for “specialty occupations.” These occupations usually require at least a bachelor’s degree or its equivalent. Common fields that rely heavily on the program include:
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Information technology and software development
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Engineering and mathematics
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Sciences and healthcare
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Academic and research roles
Employers must commit to paying the prevailing wage, ensuring that foreign employees are compensated fairly in comparison with U.S. workers.
Annual H1B Visa Caps and Exemptions
Every year, the h1b program operates under strict quotas:
| Visa Type | Annual Cap | Notes |
|---|---|---|
| Regular H-1B | 65,000 | General pool for applicants |
| Advanced Degree Exemption | 20,000 | For those with U.S. master’s degree or higher |
| Cap-Exempt Employers | Unlimited | Universities, nonprofits, and research organizations |
These caps make the visa highly competitive, with demand often far exceeding supply.
The New $100,000 H-1B Fee
On September 19, 2025, a new rule introduced a one-time fee of $100,000 for employers filing H-1B petitions for new applicants. This fee:
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Applies only to new applicants filing fresh petitions
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Does not apply to renewals or existing h1b holders
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Will be in effect for at least one year, with possible extensions
The U.S. government argues that the move aims to curb misuse of the visa system and ensure that American workers are prioritized.
Who Is Affected and Who Is Not?
The new policy creates a clear division between new applicants and current visa holders.
Affected:
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Employers hiring new foreign workers under the h-1b visa
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Technology and outsourcing companies relying on fresh recruitment
Not Affected:
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Current h1b holders already working in the U.S.
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Workers renewing or extending their visa status
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Those re-entering the U.S. with a valid visa
This distinction means that businesses heavily dependent on international recruitment will face significantly higher costs.
Industry Reaction and Global Concerns
The new rule has sparked concern across industries, particularly in India, which provides the largest share of h1b professionals. Technology firms warn that the $100,000 fee could:
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Increase operational costs
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Slow down recruitment
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Reduce flexibility in global workforce management
Meanwhile, U.S. companies worry about talent shortages, especially in highly technical roles where qualified domestic workers are limited.
Possible Exemptions and National Interest Considerations
Although the fee is broad in scope, certain exemptions exist. Employers may avoid the fee if:
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The worker is employed in a cap-exempt organization
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The role is deemed in the national interest
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Specialized sectors such as healthcare or research require foreign expertise urgently
This leaves some flexibility in the system but creates uncertainty for employers unsure whether their petitions qualify.
The Future of the H-1B Visa Program
The changes to the h-1b visa highlight the evolving immigration landscape in the U.S. While the new fee is officially temporary, its one-year duration leaves room for renewal or expansion. Businesses are urging clarity, while employees are being advised to minimize international travel until the rules are fully tested.
