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Weekly Newsletter Vol. 108 - September 24, 2025

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What’s New with the US H-1B Visa

On September 19, 2025, the Trump administration introduced a sharp change to the H-1B visa program: a $100,000 fee now required for new H-1B visa petitions filed after a set date. This fee does not apply to renewals or existing visa holders.

Some additional clarifications:

• It’s a one-time fee for new applications, rather than an annual charge.

• It applies only to visa petitions filed after the executive order’s effective date. Petitions already in progress or approved before that date are exempt.

Who This Affects

Most Tech / STEM Industries

These sectors rely heavily on H-1B workers for specialized roles—software development, AI research, engineering, biotech, etc. The new fee creates a much higher cost barrier. Outsourcing firms and companies with global talent pipelines are especially exposed.

Startups & Smaller Companies

Well-funded large tech firms may absorb or pass along the cost, but startups and smaller businesses will face real challenges. Many can’t absorb an extra $100,000 per hire, which could hamper their ability to compete for global talent.

Professionals Outside the US

Talent abroad—especially in countries supplying many H-1B workers (like India)—face uncertainty. The increase could make U.S. offers less attractive. Some may turn elsewhere: Canada, Europe, or even remote roles.

Impacts for Canada

Skilled workers who once prioritized U.S. opportunities may now consider Canadian permanent-residency paths, provincial nominee programs, or remote work more seriously. Canada’s tech and healthcare sectors could see more applicants. Companies here may benefit from a larger candidate pool. Canadian employers may need to adjust compensation or immigration support to capture talent that might have gone to the U.S.

What It Means for Businesses & Hiring Strategy 

Rising Cost of Hiring Foreign Talent

The fee adds a heavy fixed cost for hiring foreign specialists outside the U.S. Companies will need to decide whether filling roles with H-1B workers is worth the investment. Some may reduce or stop sponsorship for new foreign hires altogether.

Push Toward Onshore / Local Hiring

One possible effect is a renewed focus on hiring local talent or using trainees, apprenticeships, domestic STEM graduates. Upskilling programs might become more central.

Nearshoring / Offshoring

Rather than bring foreign talent into the U.S., companies may shift work to other countries or remote teams to avoid visa costs. Latin America, India, Canada could gain more outsourcing / remote job activity.

Uncertainty & Risk Management

Many employers are already anxious about legal, financial, and operational complications. Clarifications remain over the scope (e.g. renewals vs new, changes in status). Companies will need to track developments, adjust their immigration/legal strategies.

Broader Implications

Critics warn this move may reduce U.S. competitiveness in cutting-edge sectors like AI, biotech, etc., where foreign talent has historically made large contributions. Risk of losing high-skilled workers who will choose countries with more welcoming immigration economics. Employers may raise wages to attract domestic talent, and some foreign workers already in the U.S. may see their mobility restricted.

What To Watch For and What To Do

• Final regulatory guidance, especially on which visa types are exempt, whether the fee is truly one-time, and how “renewals” or “changes of status” are handled.

• Legal challenges — several groups have indicated this fee may face lawsuits.

• Shifts in hiring patterns — for example, seeing fewer foreign applications, more remote roles, or growth in Canada / other markets.

• If you're an H-1B holder or applicant, assess whether a job offer includes the sponsorship cost or whether you might need to be inside the U.S. already.

• Explore relocation or remote opportunities in other countries with more favourable immigration policies (Canada, etc.).

• Upskill or diversify your skillset to align with roles that are high-value or “national interest” exemptions.

The $100,000 fee on new H-1B visas is a bold move with wide ripple effects—not just in the U.S., but globally. It’s meant to protect domestic workers and discourage abuse of the visa system, but it adds friction for employers and foreign talent alike. For Canada and other immigration-friendly countries, this may represent an opportunity to attract skilled individuals reevaluating their options.

For companies and professionals, adapting quickly—through strategy, policy, and hiring practices—will determine whether this change becomes a blocker or a pivot point for growth.

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_{(*Disclaimer: these are real experiences provided by RME's community of job seekers and hiring managers)}

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