New H-1B Fee Sparks Industry Uncertainty, Legal Challenges

A presidential proclamation issued on September 19, 2025, has introduced a $100,000 fee for new H-1B visa applications, creating considerable uncertainty for U.S. industries that depend on international talent. The financial services sector, a prominent sponsor of H-1B visas for critical roles such as data scientists and quantitative engineers essential for digital transformation, faces a significant impact. This proclamation mandates the substantial fee for H-1B entry, with the restriction anticipated to remain in effect for 12 months, and possibly for the duration of the administration. While an official clarification indicates the fee applies prospectively and does not affect current visa holders, renewals, or petitions submitted before September 21, 2025, initial confusion prompted major firms, including JPMorgan Chase and Goldman Sachs, to issue emergency advisories to their H-1B employees. Immigration attorneys predict that this fee will necessitate greater selectivity in visa sponsorship by companies, potentially impeding innovation. Furthermore, the policy could significantly affect India's IT services sector, given that Indian nationals represent over 70% of H-1B beneficiaries, and may lead to an increase in offshoring. Legal challenges to the proclamation are expected, as its justification relies on selective economic assertions. Should the fee survive legal review, companies might opt to hire talent outside the United States, an outcome that appears to contradict the policy's stated aims.