President Trump's Proclamation on H-1B and the $100,000 Fees Impact on U.S. Schools

On September 19, President Trump issued a proclamation that dramatically changes the rules for employers who rely on H-1B visa workers. The proclamation, titled Restriction on Entry of Certain Nonimmigrant Workers, begins 12:01 a.m. EDT Sunday, September 21, 2025, and is set to expire after one year. Beginning September 21, 2025, H-1B sponsors would be required to pay a new $100,000 fee. Any H-1B status holder, who did not pay the fee or have the fee paid on their behalf by their sponsor, would be restricted from entering the United States using an H-1B visa. The administration has framed the measure as a way to ensure that the H-1B program is reserved for truly high-skilled, well-paid workers, and to discourage the practice of replacing U.S. employees with lower-cost foreign labor.

The restriction on entry applies to H-1B workers who attempt to enter the U.S. after the effective date. The Proclamation does not appear to cover employers filing change of status or extension of stay petitions. Therefore, any H-1B petitions filed in the U.S. should be exempt from the new fee. However, I recommend not leaving the U.S. if you are in H-1B status as your return may denied or delayed due to the new fee.

September 22 update – USCIS issued a notice that the Proclamation only pertains to new petitions filed after the September 21 effective date. It does not apply to H-1B employees who "are the beneficiaries of [H-1B] petitions that were filed prior to the effective date of the proclamation, are the beneficiaries of currently approved [H-1B] petitions, or are in possession of validly issued H-1B non-immigrant visas." Furthermore it "does not impact the ability of any current visa holder to travel to or from the United States.”

The proclamation provides that the Department of Homeland Security may waive the fee for individuals if their use of H-1B workers is deemed to serve the national interest. Educating school-aged students is a strong U.S. interest. Given the teacher shortage in the United States, it is arguable that a teacher being sponsored for H-1B should be exempt from the $100,000 fee because it is in the country's best interest to allow that teacher to fill a classroom that would otherwise be vacant. If not, then the rule would severely restrict U.S. school districts' ability to staff classrooms. In the U.S. it is estimated that there are more than 400,000 unfilled classrooms or classrooms staffed by teachers who are not fully certified for their assignments. Creating a barrier that a school district in America simply cannot get around will prevent U.S. children from accessing the education they need.

Finally, I expect a legal challenge any day. Whether the President, the Department of Homeland Security, U.S. Citizenship and Immigration Services, or Customs and Border Patrol have the authority to create an exorbitant new fee without following the Administrative Procedure Act will be challenged in court.

Please feel free to contact us if you have any questions at pdo@pdortegalaw.com.