The Trump H-1B update 2025 has created one of the biggest shifts in U.S. immigration and business policy in recent years. By introducing a new $100,000 fee for certain H-1B visa petitions, the rule has left many businesses questioning whether it is still sustainable to hire global talent in the U.S. The move has already sparked doubts, fear, and confusion for employers and workers alike.
For companies that rely on highly skilled professionals from abroad—especially in technology, engineering, research, and healthcare—this change could dramatically affect hiring strategies. Some businesses are even exploring the idea of relocating jobs abroad to avoid high costs and constant uncertainty in U.S. immigration policies.
This blog explains the new rule in simple words, clears up the most common questions, and discusses why U.S. businesses are considering moving operations overseas as a result.
Here’s a breakdown of the new rule:
$100,000 Fee Requirement
Employers filing new H-1B petitions for workers outside the U.S. must now pay a one-time $100,000 fee in addition to regular filing costs.
Restriction on Entry
If the fee is not paid, workers outside the U.S. will not be allowed entry, even if they were selected for the visa lottery.
Effective Date
The rule applies to all petitions filed on or after September 21, 2025.
Prevailing Wage Changes
The Department of Labor has been ordered to raise wage requirements for H-1B positions, making it harder for companies to hire lower-paid workers.
Focus on High-Paid, High-Skilled Roles
The update emphasizes that H-1Bs should go to the “best and brightest,” limiting access for entry-level or lower-wage positions.
Limited Exemptions
Some petitions may be exempt if they serve U.S. “national interests,” but these exceptions are narrow and uncertain.
The update also directs the Department of Labor to raise wage levels under the H-1B program, which is explained in the Department of Labor foreign labor programs resources.
Employers filing new H-1B petitions for workers outside the U.S..
Foreign professionals waiting abroad to begin employment in the U.S. after approval.
Smaller and mid-sized companies that cannot easily absorb a $100,000 fee per worker.
Current H-1B holders already inside the U.S. as of September 21, 2025.
Renewals, extensions, or employer changes for people already on H-1B status in the U.S. (for now).
Past petitions filed and approved before the effective date.
For U.S. employers, the cost of hiring foreign workers just became dramatically higher. This change could:
Increase expenses for each foreign hire by six figures.
Delay projects when visas are denied due to unpaid fees.
Reduce competitiveness compared to companies in Canada, the UK, and Australia, where visa costs are lower and immigration systems are clearer.
Cause uncertainty for employees who may risk being stuck abroad if they travel after the rule takes effect.
Yes, this is now a common question in global business circles:
“Will companies leave the U.S. after the Trump H-1B update 2025?”
Many are seriously considering it. Here’s why:
Canada’s Global Talent Stream offers faster processing and cheaper fees.
The UK’s Skilled Worker visa provides clear wage thresholds without excessive costs.
Australia’s Temporary Skill Shortage visa is designed to attract companies and foreign workers easily.
Compared to these systems, the U.S. is now seen as unpredictable and prohibitively expensive. For businesses whose survival depends on innovation and global talent, relocating part of their workforce or even entire departments abroad may be a logical move.
Large corporations like Google or Microsoft may absorb the $100,000 fee. But for smaller firms, each hire at that cost could mean:
Cancelling projects.
Outsourcing roles abroad.
Moving operations to countries with friendlier visa systems.
This update may unintentionally push smaller businesses—the backbone of U.S. innovation—out of the country.
America has long been the world’s hub for innovation because of its ability to attract global talent. But the H-1B update risks:
Slowing down startups that rely on foreign engineers.
Causing research labs to move abroad.
Reducing the U.S.’s competitive edge in emerging technologies.
If companies cannot bring skilled professionals to the U.S. affordably, they will simply hire them elsewhere.
No. If you’re already on an H-1B and living in the U.S., the fee does not apply to you.
It is a one-time charge when filing a new petition. It is not an annual fee.
Then you are not affected. The fee only applies to petitions filed on or after that date.
Yes, and many companies are considering this. If hiring abroad is cheaper and faster, relocation may be preferred.
The proclamation is set for 12 months, but it can be extended or changed in the future.
Many companies are already researching alternatives:
Canada: Work permits under the Global Talent Stream in as little as 2 weeks.
United Kingdom: Clear Skilled Worker visa routes with transparent wage thresholds.
Australia: Skilled visa categories designed for long-term hiring.
These countries are aggressively marketing themselves to global companies—and the Trump H-1B update may drive U.S. employers straight to them. Employers should review the U.S. Department of State employment visa page to understand how the H-1B process now compares to global alternatives.
Review your workforce — Identify employees abroad who may be affected.
Decide on relocation strategies — Consider whether moving roles abroad makes financial sense.
Consult immigration attorneys — Both in the U.S. and in potential new markets.
Plan for travel risks — Warn employees about travel outside the U.S. during this period.
Stay updated — Monitor guidance from USCIS.
The Trump H-1B update 2025 is more than just an immigration rule—it’s a business decision point. With a $100,000 fee attached to hiring talent from abroad, many U.S. companies will find it cheaper and more efficient to move jobs overseas.
For global businesses, the question is no longer just how to hire in the U.S., but whether it makes sense at all. For the U.S., the risk is clear: losing top talent and innovation to other countries that welcome skilled workers without unreasonable barriers.
If your company is rethinking its hiring strategy after the Trump H-1B update 2025, our team at Adam Bernards Law can guide you through the process and help you explore your best options. Contact us today for a consultation.