The Biden administration has imposed a mandatory USD 100,000 payment on new H-1B visa petitions, a move that will take effect from 21 September 2025 and remain in force for 12 months unless extended. The measure will not apply to current visa holders or renewal cases.
Under the new rule, the Department of Homeland Security (DHS) will reject petitions without proof of payment for workers applying from outside the United States. Exceptions may be granted if the Secretary of Homeland Security determines that hiring certain individuals, or workers in specific sectors, is in the national interest and does not compromise US security or welfare.
Employers must retain evidence of the payment, which will be verified by the State Department during the visa process. DHS and the State Department will jointly enforce compliance, with entry denied to workers whose employers fail to provide proof of payment.
The Labour Department is also preparing to revise minimum wage levels for H-1B workers. At the same time, DHS will prioritize applicants who are highly paid and demonstrate advanced skills, in line with existing immigration rules.
The executive order clarifies that it does not expand legal authorities, alter existing laws, or create new rights. Implementation will take place within current legal frameworks and funding limits.
The H-1B program, originally designed to attract highly skilled foreign workers, has long faced criticism for being misused by outsourcing and consulting firms. Critics argue that companies have exploited the system to replace American employees with lower-paid foreign workers.
In the order, the president accused IT firms of manipulating the visa system to “significantly harm American workers in computer-related fields.” It cited cases where companies shut down in-house IT departments, laid off American staff, and outsourced jobs overseas.