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Urgent Update: New Presidential Proclamation Impacts H-1B Nonimmigrant Workers

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As of September 19, 2025, a new Presidential Proclamation has introduced significant changes to the H-1B visa program. This action stems from a growing concern about the program’s impact on U.S. workers, particularly in the IT and STEM sectors. It’s crucial for all employers, especially those who currently employ or are considering hiring H-1B workers, to understand these new rules.

What’s Changing? 

The most notable change is a new financial requirement for employers. Starting at 12:01 a.m. EDT on September 21, 2025, employers must pay a $100,000 fee for H-1B petitions for workers who are currently outside the U.S. This is a significant increase from previous costs.

The proclamation is set to last for 12 months, but it’s important to remember that this duration could be extended. The government has also stated that it may waive the restriction if a case is considered to be in the “national interest” and poses no threat to U.S. security.

What Does This Mean for You? 

The new fee will impact your business’s planning and strategy, especially if you rely on the H-1B program for talent.

  • Higher Costs: You can expect a significant increase in the cost of hiring H-1B workers from abroad. This will directly affect your recruitment budget and overall workforce planning.
  • Recruitment & Timelines: The new requirements may cause delays for pending and future petitions, as government agencies will need time to verify payments and update their procedures. This could affect your ability to onboard new team members from outside the U.S.
  • Proof of Payment: Employers must now retain proof of the $100,000 payment. The Department of State and the Department of Homeland Security (DHS) will verify this payment during the visa adjudication process.

Clarification from USCIS 

Following the proclamation, USCIS issued a policy memorandum to clear up some initial confusion. This guidance provides much-needed reassurance for many employers and employees.

  • Not Retroactive: The new $100,000 fee only applies to petitions filed on or after September 21, 2025.Petitions submitted before this date are not subject to the new fee.
  • Current H-1B Holders are Safe: If you have employees who already have a valid H-1B visa, they are not impacted by this new fee.
  • Travel is Still Permitted: Current H-1B holders can continue to travel internationally and re-enter the U.S. without paying the new fee. This is a crucial clarification, as many feared a travel ban.

What Happens Next? 

The new rules are aimed at prioritizing “high-skilled, high-paid workers” and revising prevailing wage levels. These changes suggest a shift in the government’s approach to the H-1B program. We will continue to monitor the situation for any further rulemaking from the Department of Labor and DHS.

We recommend that all businesses review their immigration strategy immediately and consult with legal counsel to ensure compliance. If you have any questions about how these changes affect your specific case, please don’t hesitate to reach out to us. We are here to help you navigate these complex new regulations.

(Atty. Lourdes Santos Tancinco, Esq. is a San Francisco based immigration attorney and an immigrant rights advocate. She may be reached at 1 888 930 0808, law@tancinco.com or facebook.com/tancincolaw, or through her website www.tancinco.com)

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Updates

Exploring Alternatives to the H-1B Visa

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The H-1B visa is a popular choice for U.S. work visas, allowing individuals to work in specialty occupations. However, due to the high demand, many applicants do not secure an H-1B visa through the annual lottery. If you weren’t selected in the H-1B Cap Lottery for Fiscal Year 2025, which closed on March 25, 2024, and announced results on April 1, 2024, there are still several viable alternatives to explore.

1. H-1B Work Authorization for Cap-Exempt Employers

Not all H-1B employment falls under the annual cap. Certain employers can file cap-exempt petitions at any time, including:

  • Institutions of higher education or affiliated nonprofit entities
  • Nonprofit research organizations
  • Government research organizations

Additionally, cap-subject employers can hire H-1B visa holders who also work for a cap-exempt employer, provided they maintain their cap-exempt employment throughout the H-1B validity period.

2. F-1 Work Authorization Options

International students in the U.S. might extend their employment authorization through Optional Practical Training (OPT):

  • Non-STEM graduates can receive up to 12 months of work authorization post-graduation.
  • STEM graduates can receive up to 36 months of work authorization, provided their employer is enrolled in E-Verify.

Another option is enrolling in a new university program to work under F-1 Curricular Practical Training (CPT). However, this route carries risks, including potential requests for additional evidence in future H-1B petitions. It’s crucial to thoroughly research and maintain documentation of your student status.

3. Dependent Work Authorization Tied to a Spouse’s Employment

Spouses of visa holders such as E-2, E-3, H-1B, and L-1 may be eligible for work authorization:

  • Spouses of E and L visa holders are automatically authorized to work as indicated on their I-94 document.
  • Spouses of H-1B visa holders (H-4 visa) can work if the H-1B holder has reached a significant milestone in the green card process and the H-4 spouse has applied for an Employment Authorization Document (EAD).

4. Country-Specific Visa Categories

Citizens of countries with specific trade agreements with the U.S. can benefit from specialized work visas:

  • TN visas for Canadians and Mexicans in specified professional occupations.
  • H-1B1 visas for Chileans and Singaporeans in specialty occupations.
  • E-3 visas for Australians in specialty occupations.

These visas typically do not lead directly to green cards, so continuing to enter the H-1B lottery is advisable for long-term U.S. residency.

5. E-1/E-2 Visas for Treaty Traders & Investors

Nationals from countries with U.S. treaties can apply for E-1 (treaty trader) or E-2 (treaty investor) visas. These visas apply to executives or specialized employees of companies with the same nationality as the applicant. However, like other visas, they don’t directly lead to green cards, so participating in the H-1B lottery is still recommended.

6. O-1 Visa for Individuals with Extraordinary Ability

Individuals with exceptional talent in sciences, education, arts, business, or athletics may qualify for an O-1 visa. This category includes specific provisions for PhDs in STEM fields. Similar to other alternatives, this visa doesn’t provide a clear path to a green card.

7. L-1 Visa for Intracompany Transferees

Employees of international companies with U.S. branches might qualify for an L-1 visa if:

  • The U.S. and foreign entities have a qualifying relationship.
  • The applicant has worked for the foreign entity for at least one year in the past three years.
  • The employment is in a managerial or specialized knowledge role.

8. Green Card Options

Though not an immediate solution, applying for a green card can lead to long-term U.S. work authorization. Some categories allow self-petitioning without employer sponsorship:

  • EB-1 for individuals of extraordinary ability, requiring proof of sustained acclaim.
  • EB-2 with a National Interest Waiver for individuals with advanced degrees or exceptional abilities, demonstrating that their work benefits the U.S.

By understanding these alternatives, individuals not selected in the H-1B lottery can still find viable paths to work and remain in the U.S.