Breaking: Major H-1B Changes September 2025
Critical updates every tech worker and employer needs to know
TL;DR — What Changed
Breaking (Sept 19–21, 2025): Presidential proclamation now requires $100,000 payment for H-1B entries unless the petition is “accompanied or supplemented by a payment of $100,000” for beneficiaries outside the U.S., effective Sept 21, 2025, for 12 months.
Critical ambiguity: The proclamation text doesn’t clearly exempt existing H-1B holders re-entering, despite press briefings suggesting otherwise. This creates massive travel risk until agencies clarify.
Lottery overhaul (FY2025+): Moved to beneficiary-centric selection (unique person, not registration count) with passport verification. Result: registrations dropped, selection rates improved.
Fee increases (2024-2025):
- Registration fee: $10 → $215
- I-129 base: $780 (paper) / $730 (online)
- New Asylum Program Fee: $600 (regular) / $300 (small employers)
- Premium processing: $2,805 (15 business days)
Impact by Worker Type
Currently in U.S. on H-1B
Good news:
- Cap-gap extended to April 1 (was Sep 30) — less pressure for premium processing
- Remote work explicitly recognized for bona fide U.S. jobs
- Beneficiary-owner pathway clearer for startup founders
Travel risk:
- Defer non-essential international travel until $100K payment scope is clarified
- Text vs. briefings conflict on existing H-1B re-entry exemption
Outside U.S. Waiting for H-1B Start
- Hiring freezes likely — most employers will pause overseas H-1B hires
- Expect shift to remote/nearshore models or cap-exempt routing
- O-1 visa may become preferred alternative
F-1/OPT Students
- Cap-gap to April 1 provides better work continuity
- Coordinate start dates carefully with counsel
- Less need for premium processing purely for status gaps
Employer Impact
Cost Per H-1B Hire (Large Employer)
- I-129: $780 (paper)
- Asylum Program Fee: $600
- ACWIA: $1,500
- Fraud Fee: $500
- Premium Processing: $2,805 (optional)
- Registration: $215
Total: ~$6,400 before attorney fees
+ $100,000 if worker outside U.S. (next 12 months)
Small Employers (≤25 employees)
- Reduced ACWIA ($750) and Asylum Program Fee ($300)
- Total: ~$5,135 + potential $100K
Compliance Changes
- Site visits codified — including third-party client locations
- Non-cooperation = denial/revocation
- Need client-site documentation playbooks
- Remote work OK but coordinate LCA locations with DOL
Lottery Dynamics Shifted
FY2026 Results:
- Registrations: 344K eligible (down from 470K in FY2025)
- Selection rate: ~35% (up from ~29%)
- Multi-employer stacking largely eliminated
- Passport verification reduced duplicate gaming
Translation: Better odds per candidate, but fewer manipulation tactics work.
Practical Action Items
For H-1B Workers
- Avoid travel until DHS/State clarify $100K payment scope
- Keep I-94, pay stubs, status evidence current
- Consider in-country extensions/transfers when possible
- Use cap-gap to April 1 strategically
For Employers
- Freeze overseas H-1B starts or budget $100K payment
- Shift to remote/nearshore models temporarily
- Examine O-1, cap-exempt H-1B, TN/E-3 alternatives
- Build site-visit readiness kit (third-party sites included)
- Update fee budgets with new USCIS costs
For Founders
- H-1B beneficiary-owner pathway now more viable in U.S.
- Combine with remote work recognition
- Keep specialty duties >50% and document properly
- Inside U.S. only — overseas founders face $100K barrier
Key Uncertainties
- Scope of $100K payment — existing H-1B re-entry exemption unclear
- Court challenges to proclamation expected
- DOL prevailing wage rulemaking timeline TBD
- Stateside visa renewal discontinued (as of Sept 2025)
Timeline of Changes
- Jan-Apr 2024: Domestic visa renewal pilot
- Feb 2024: Beneficiary-centric lottery rules finalized
- Apr 2024: Fee increases take effect
- Jan 17, 2025: H-1B Modernization Final Rule
- Aug 2025: FY2026 lottery results confirm integrity measures
- Sept 9, 2025: State discontinues stateside renewal
- Sept 19-21, 2025: $100K payment proclamation
Bottom Line
The $100K payment requirement creates the biggest disruption to H-1B hiring in years. Combined with higher fees and tighter compliance, employers are restructuring hiring strategies.
Winners: Workers already in the U.S. (better cap-gap, remote work, founder pathways)
Losers: Overseas talent pipeline, employers dependent on international hiring
Watch: Court challenges to the proclamation and agency implementation guidance.
Anyone else dealing with H-1B strategy changes? How are your companies adapting? 