The Shocking New H-1B Visa Proclamation: What HR and Business Leaders Need to Know

On Sept. 19, 2025, the White House issued a Presidential Proclamation that imposes a $100,000 supplemental payment tied to new H-1B petitions and restricts entry for certain H-1B nonimmigrants unless the payment is made. The proclamation is effective beginning 12:01 a.m. EDT on Sept. 21, 2025, and is described as a one-year measure that applies prospectively to new petitions and certain entries — not to routine renewals for existing H-1B holders already in the U.S., according to subsequent White House and USCIS clarifications. 

What the H-1B is (quick refresher) The H-1B is a temporary, employer-sponsored nonimmigrant classification for “specialty occupations” that typically require at least a bachelor’s degree. Common sectors include technology, engineering and healthcare. The annual new-cap is 85,000 (65,000 regular + 20,000 advanced degree exemptions). 

➡️ Download our H-1B Visa Proclamation Checklist for HR and business leaders.

Key Takeaways for Employers

The fee is large and targeted at new petitions/entries. 

The proclamation requires a $100,000 payment tied to new H-1B petitions and to certain H-1B entrants abroad; the Administration later clarified it will not apply to most current H-1B holders’ routine renewals or reentries under ordinary circumstances. Read the official proclamation, Whitehouse FAQ, and USCIS FAQ for the precise scope. 

This is a prospective, administrative measure — not new legislation. 

The President issued a proclamation under executive authority; it did not pass Congress. Legal challenges are widely expected and are already being discussed by immigration lawyers and industry groups. Whether courts will uphold the proclamation, and on what legal theories, is unresolved. HR teams should plan for both immediate disruption and the possibility of injunctions or modification by the courts. 

Who will be most affected?

Smaller employers, startups, universities and healthcare providers that rely on first-time H-1B hires from abroad could face the biggest short-term shock. Large tech firms may be able to absorb costs but could still change hiring strategy. Industry alerts from law firms and major outlets already warn of operational impacts (delays in visa stamping, travel uncertainty, and re-evaluation of offshore vs. local hiring). 

What is the global and demographic context?

H-1B approvals are heavily concentrated by country of birth: recent DHS/USCIS data show roughly 70–73% of approved H-1B petitions in recent fiscal years listed beneficiaries born in India; China is the next most common country (about 12%). These demographics explain why the measure has received strong attention from India and Indian IT stakeholders. 

What are the possible business responses?

Expect employers to (a) pause or reprioritize new overseas hires; (b) accelerate use of offshore/nearshore delivery models; (c) increase investment in U.S. workforce upskilling; or (d) push legal challenges arguing statutory limits on executive authority and agency rulemaking procedures. All are plausible and worth contingency planning. 

Practical Steps HR and Business Leaders Should Take Now

1. Audit upcoming hires — identify any H-1B-dependent roles or international candidates with imminent travel or stamping appointments.

2. Contact immigration counsel immediately for case-specific guidance and to monitor litigation.

3. Communicate clearly with affected employees and candidates — be transparent about uncertainty and next steps.

4. Reassess workforce plans: consider temporary solutions (local contractors, remote work from outside U.S., near-shore talent) and ramp up contingency recruitment or upskilling budgets.

5. Prepare finance and forecasting teams for potential one-time cost shocks to hiring plans and budgeting scenarios.

Bottom Line: This proclamation represents a sudden, high-impact administrative change in immigration policy. Its immediate operational effect will depend on agency guidance, the exact scope of exemptions/clarifications, and the outcome of legal challenges. HR and business leaders should treat this as both a legal/immigration issue and a strategic workforce risk that requires rapid review of hiring, travel, and talent sourcing plans.

Resources

• H-1B Visa Proclamation Checklist

• The White House+1

• USCIS, USCIS+1

• WilmerHale+1

• Baker Donelson+1

• Reuters+1

Darron J. Lasley, MSHR, SPHR

Darron is an Executive HR/Talent Consultant and Life/Career Coach with nearly 20 years of experience which includes serving as the Head of HR & Recruiting for top-performing technology, healthcare, and financial services companies. He specializes in helping ambitious professionals and business leaders break through barriers, maximize their potential, and achieve lasting success. He's partnered with Founders, CEOs, and thousands of professionals, gaining insider knowledge on what top decision-makers look for in high performers. Now, Darron shares those insights with you, so you can confidently navigate career growth, leadership strategies, and personal development with expert guidance.

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