President Trump’s H-1B Proclamation Issued Friday, September 19, 2025
In the late afternoon on September 19, 2025, President Trump issued a Proclamation - Restriction on Entry of Certain Nonimmigrant Workers - that immediately, directly, and materially impacts employers and employees who use H-1B Visas. Here is what you need to know:
Payment. Employers must pay a fee of $100,000 per worker to employ foreign citizens that are abroad in this category, unless an exception applies. The current and conservative interpretation is that this applies to new H-1B workers and those requesting reentry who already hold an H-1B Visa stamp. For new petitions, if employers do not pay the fee, the government will not approve the petition and will not issue the H-1B Visa stamp abroad. The Proclamation does not specify the basis for the payment and is silent with respect to waivers due to economic hardship.
Effective Date. The Proclamation will go into effect at 12:01 A.M E.S.T. on Sunday, September 21, 2025, unless a court enjoins it.
Applicability. The Proclamation will apply to H-1B petitions for foreign citizens that are abroad when the petitions are filed or are pending on or after September 21, 2025.
Exemptions. The Proclamation will not apply in the following instances:
The foreign citizen already is in the United States of America (U.S.A.) as of the effective date even if his/her petition is still pending.
The employer is requesting a change of status to an H-1B, an extension of an H-1B Visa, or an amendment of an H-1B visa for a foreign citizen that is physically present in the U.S.A.
Immediately Return. H-1B holders who are not physically present in the U.S.A. as of the Effective Date could be denied reentry unless their employers pay the fee. All foreign citizens with a valid H-1 B Visa immediately need to make travel arrangements to return to the U.S.A. before the Effective Date. The Proclamation does not clarify what happens if foreign citizens are in transit to the U.S.A. as of the effective date.
Foreign Travel. All foreign citizens with an H-1B Visa should refrain from foreign travel once the Proclamation goes into effect and during the pendency of any anticipated litigation with respect to the same.
Restrictions on Alternative Entry. The use of the B nonimmigrant visa is being closely scrutinized by government officials so that it is not used as a workaround for returning or new U.S. workers.
National Interest. The Proclamation indicates that H-1B holders who are performing work in the “national interest” and do not pose a threat to the U.S.A. will be relieved of the $100,000 payment. It is unclear what the administration will consider as “national interest” and who will be reviewing the evidence of support in this area. The Proclamation does not outline standards of review, occupational categories, or types of employers that may be eligible for these carveouts, and we will monitor for additional guidance.
Increased Wages. The Proclamation also seeks to revise prevailing wage levels and directs the Secretary of the Department of Homeland Security to initiate a rulemaking procedure regarding the same. This is projected to increase prevailing wage levels and will affect the wages paid to H-1B workers under Labor Condition Applications.
Family Members. Spouses and children of H-1B holders have derivative legal status in this country. They likewise should remain in this country and should avoid travel.
Duration. The Proclamation will be in effect for at least 12 months, unless the President extends it based on recommendations.
Evolving. This situation likely will evolve very quickly because the Proclamation is unclear and vague in many respects and we anticipate immediate legal challenge to the same. This Proclamation, unfortunately, raises more questions than it directly answers.
The basis for this Proclamation is the perceived abuse of the H-1B program by technology companies and STEM employers overall. The Trump Administration is calling out companies whom he believes have fired U.S. workers in STEM fields and replaced them with H-1B workers who are paid lower wages. While the Proclamation does not specify companies of focus, one can deduce that they are in Silicon Valley. While operating within the terms of the H-1B program, there is a perception that STEM employers are leveraging foreign talent at the expense of American workers.
The Pierson Ferdinand Immigration Practice Group expects litigation to challenge this Proclamation. Our team is ready to address your questions and your clients’ questions regarding the H-1B Proclamation. Please contact us at immigration@pierferd.com.
Allison M. Bustin allison.bustin@pierferd.com
Giovanni D. Antonucci Di Cesare giovanni.antonucci@pierferd.com
Sanford Posner sanford.posner@pierferd.com
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