Explained: H-1B entry fee explained: Who pays, who is exempted, and what is not clear?

On September 19, 2025, the U.S. President signed a proclamation titled Restriction on Entry of Certain Nonimmigrant Workers. Among its provisions is a $100,000 fee that must be paid for certain H-1B visa petitions by employers, in order for foreign nationals under H-1B status to enter the United States (or for new visas to be issued) if they are outside the U.S. as of the effective date: 12:01 a.m. EDT, September 21, 2025. Boundless+4The White House+4Fragomen+4

It is being called an “entry fee” because it applies to those entering the U.S. (or seeking visa/visa stamping abroad). The Indian Express+2The White House+2

Who Pays the H-1B Entry Fee?

• The fee must be paid by the employer, not by the individual applicant / employee. That is consistent with existing rules for H-1B application fees: the employer typically pays. Harris Sliwoski LLP+1

• For petitions filed by employers for beneficiaries outside the U.S. after the fee becomes effective, the $100,000 payment must accompany or be “supplemented by” the petition. If not, the U.S. Citizenship & Immigration Services (DHS) and U.S. State Department may refuse visa issuance or deny entry. Fragomen+2The White House+2

Who Is Exempted / Not Subject to the Fee

Here are categories exempted or not immediately affected, based on current text and clarifications. Some of these are clear, others are subject to interpretation and may depend on additional guidance.

What Is Not Clear / Open Questions

Several points remain ambiguous or not fully defined in the documents so far. These may lead to legal challenges or require further policy guidance.

1. Annual vs One-Time Fee

   • The original announcement suggested the fee could be annual, but later clarifications from the White House said it’s a one-time fee when entering the U.S. or when the petition is filed for new beneficiaries outside the U.S. Manifest Law+2Axios+2

   • It’s not fully clear if “annual” refers to needing to pay for each re-entry, each year of employment, or just once per petition.

2. Effect on re-entry for those with valid H-1B visas

   • Although the White House says current holders will not be charged for re-entry, the proclamation’s language (requiring the fee for “entry” of H-1B workers outside the U.S.) leaves some ambiguity about whether re-entry after travel abroad might trigger it, especially if the visa stamp is valid but the petition was approved before the effective date. Fragomen+2Harris Sliwoski LLP+2

3. How small companies, cap-exempt employers, nonprofits are treated

   • There is no explicit exemption yet for small employers or nonprofit / research institutions (as has happened under earlier fee regimes). That means costs could disproportionately affect companies hiring overseas. Harris Sliwoski LLP+1

4. Process / mechanism of payment

   • It is not fully detailed how or to which agency the $100,000 is to be paid, whether via USCIS, State Department, CBP, or some coordinated payment; or how to prove payment during visa stamping or entry. Fragomen+1

5. Duration / possible extension

   • The proclamation is set to last 12 months starting from its effective date, but could be extended. The White House+1

Summary

The H-1B entry fee is a new $100,000 charge imposed on H-1B visa petitions for individuals outside the U.S. starting September 21, 2025. Employers must pay this fee for new visas or entry into the U.S., unless exemptions apply. Existing visa holders, extensions, transfers, and change of status inside the U.S. are mostly exempt. Key uncertainties remain about re-entry, whether the fee is recurring, and how small or cap-exempt employers are affected.

FAQs

Q1. What exactly is “entry” for the H-1B entry fee?
A: It refers to entering the U.S. on H-1B status (or obtaining a visa stamp abroad) for someone who is outside the U.S. on or after September 21, 2025. If you are already inside the U.S. and remain valid, or have petitions approved before that date, you are generally not subject to the fee. The White House+2The Indian Express+2

Q2. Does the fee apply to H-1B renewals or extensions?
A: Not for petitions or extensions filed while the beneficiary is inside the U.S. If the visa renewal / visa stamping happens outside after the effective date, there is uncertainty, but broadly renewals of in-country status are exempt. The Indian Express+1

Q3. Can the employer pass this cost to the employee?
A: Under U.S. immigration law, most H-1B fees must be borne by the employer, not by the worker. It is expected this fee will follow that principle. Harris Sliwoski LLP

Q4. Are any industries or persons automatically exempt?
A: Not automatically, except existing visa holders or petition beneficiaries approved before effective date. There is a provision for waivers/exemptions if the Secretary of Homeland Security deems hiring in certain cases to be in the national interest or not harmful to U.S. security or welfare. The White House+1

Q5. What should someone with a current valid H-1B visa do, especially if they are abroad?
A: Based on clarifications, those with a valid H-1B visa (or approved petition filed before Sept 21, 2025) should be able to return without paying the fee. But because some ambiguity remains, many attorneys advise to confirm with counsel or track official USCIS/State Department guidance.

📌 Quick FAQs

Q1. Can employers pass this $100,000 cost to employees?
No. U.S. law requires employers to bear H-1B costs.

Q2. Does it affect H-1B extensions in the U.S.?
No, only new petitions for workers outside the U.S.

Q3. How long will the fee last?
Initially 12 months, but it may be extended.

Q4. Are there industry exemptions?
Possible, but only if DHS grants a waiver for “national interest.”