Executive summary
The September 2025 Presidential Proclamation introduced a $100,000 fee on certain H-1B petitions. This brief examines who is covered, how employers have responded, and what the second-order effects have been on the broader visa market.
Early data from FY2026 lottery filings suggests a meaningful contraction in entry-level wage tier registrations, an uptick in O-1 and L-1 filings, and a measurable shift in employer behavior toward visa categories that do not trigger the fee.
What the Proclamation does
The September 2025 Proclamation imposed a $100,000 fee on H-1B petitions meeting specified criteria. Implementation guidance from DOL and USCIS clarifies which petitions are covered, but the headline effect is a step-change in employer cost for many H-1B filings.
Employer response
- Reduction in entry-level (Wage Level 1) lottery registrations relative to FY2025.
- Increased filing volume in O-1 and EB-1A categories at firms with strong evidence portfolios.
- Shift toward L-1 transfer for multinationals with foreign offices and qualifying employees.
- Greater interest in cap-exempt H-1B placements at universities and qualifying nonprofits.
Why this matters for candidates
The Proclamation effectively raises the threshold for being economically worth sponsoring on H-1B at the typical-employer level. Candidates who previously assumed the H-1B was the default option are now facing a market in which alternatives are more attractive both to themselves and to their employers.