You've probably heard the rumors or seen the frantic LinkedIn posts. The world of high-skilled immigration just got hit by a metaphorical ton of bricks, and honestly, it’s a lot to process. Donald Trump on H-1B visa policy has always been a lightning rod, but 2026 is seeing something we’ve never actually seen before: a literal price tag on the American Dream.
We aren't talking about a couple of hundred bucks for processing. It’s $100,000.
That is the new entry fee for a new H-1B petition as of late 2025. If you're a founder of a tiny AI startup in a garage, that’s not just a hurdle. It’s a wall.
The $100,000 Elephant in the Room
Basically, the administration signed a proclamation that changed everything on September 19, 2025. They’re calling it a "restriction on entry," but most tech folks call it a shakedown. The logic from the White House is that companies have been "exploiting" the system to replace Americans with cheaper foreign labor. To stop this, they’ve slapped a massive fee on any new H-1B worker coming from outside the country.
Does it apply to everyone? Kinda, but there are loopholes.
If you’re already in the U.S. and just extending your visa? You’re safe for now. If you're a student switching from an F-1 to an H-1B while staying inside the states? You likely dodge the $100,000 bullet too. But the second you step across the border for a vacation or a business trip, things get dicey. Customs and Border Protection (CBP) has been given a lot of leeway to scrutinize anyone they think is trying to "bypass" the fee by changing status internally.
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Why the Lottery Just Got Way Harder
It’s not just about the money, though. The way people actually get picked for a visa is being flipped upside down starting February 27, 2026.
Forget the old random lottery where everyone had the same shot. The new system is "wage-based."
Think of it like a raffle where the more you get paid, the more tickets you get.
- Level IV (The Pros): You get four entries.
- Level I (The New Grads): You get exactly one.
If you’re a recent grad from a top-tier U.S. university looking for your first job, your odds just tanked to about 15%. Meanwhile, a senior architect making $200k has over a 100% better chance than they used to. The administration says this ensures we only get the "best and brightest." Critics, like the American Immigration Council, argue it just kills the pipeline of young talent that eventually becomes the next generation of CEOs.
The Reality for Tech Giants vs. Startups
Amazon, Google, and Meta have the cash. They might grumble, but they can afford a few million dollars to keep their key engineers. But what about the mid-sized firm in Ohio or the startup in Austin?
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I was talking to a founder recently who wanted to hire a specific data scientist from Bengaluru. The candidate is brilliant. But between the $100,000 fee, legal costs, and the uncertainty of the new lottery, the founder just gave up. They’re hiring in Canada instead.
That's the "brain drain" everyone is worried about.
Donald Trump on H-1B visa restrictions has historically led to "offshoring." If a company can't bring the worker to the U.S., they just open an office in Vancouver or Hyderabad. In fact, research from Wharton suggests that when H-1B restrictions tighten, U.S. multinationals just move the jobs to their foreign affiliates. So the job doesn't go to an American; it just leaves the country entirely.
Is This Even Legal?
Honestly, the courts are a mess right now. California and about 19 other states have already filed lawsuits to block the $100,000 fee. They’re arguing that the President doesn't have the authority to set "taxes" under the guise of "entry restrictions."
But the administration is using Section 212(f) of the Immigration and Nationality Act. That’s the "Supreme Court-approved" power they used for the travel bans in the first term. It gives the President massive power to block any class of "aliens" he thinks are detrimental to U.S. interests.
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What You Should Actually Do Now
If you are an employer or a worker caught in this transition, you can't just wait for the lawsuits to settle. You need a plan.
- Check Your Filing Date: The $100,000 fee generally applies to petitions filed after September 21, 2025. If you have an old approval notice, keep it like it’s gold. You’ll need to show it to CBP if you travel.
- Audit Your Wage Levels: For the March 2026 lottery, your "Level" is everything. If you're an employer, you need to be extremely careful how you categorize roles. A Level I designation is basically a rejection letter in this new climate.
- Explore Alternatives: The fee specifically targets H-1B. It doesn't (yet) hit O-1 (extraordinary ability) or L-1 (intracompany transfer) visas in the same way. If your candidate is a rockstar, they might qualify for an O-1 and save you a hundred grand.
- Watch the "National Interest" Waivers: The Secretary of Homeland Security can waive the fee for "national interest" cases. Right now, there’s huge pressure to exempt doctors in rural areas. If you’re in healthcare or defense, keep a close eye on those exemptions.
The landscape for Donald Trump on H-1B visa policy is shifting every single week. It’s a protectionist "America First" strategy taken to its logical, and very expensive, extreme. Whether it actually helps American workers or just pushes the next Google to be founded in Toronto remains the billion-dollar question.
For now, if you're planning on hiring from abroad, you better check your bank balance first.
Next Steps for Employers and Workers
- Review your FY 2027 lottery strategy immediately, focusing on wage level optimization before the March registration window opens.
- Consult with immigration counsel regarding the "change of status" vs. "consular notification" pathway to determine if you can legally avoid the entry fee by remaining within the United States.
- Monitor the docket for the California-led lawsuit against the fee; a preliminary injunction could freeze the $100,000 requirement at any moment.