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Trump Administration Advances H‑1B Overhaul as $100,000 Fee Takes Effect

DHS proposes a wage-based selection system with tighter cap‑exempt rules that could reshape hiring across tech, academia and healthcare.

Overview

  • USCIS, CBP and State have issued initial implementation guidance, but payment mechanics and exemptions remain unclear, and petitions approved before Sept. 21 are unaffected.
  • DHS has placed broad reforms on the regulatory agenda, including revising cap‑exemption eligibility, increased oversight of third‑party placements and employers with prior violations, and a shift from a lottery to wage‑based selection as early as December.
  • A coalition of unions, universities, employers and religious groups sued in the Northern District of California on Oct. 3 to block the proclamation, seeking an injunction on grounds it exceeds executive authority and violates administrative law.
  • Nvidia said it will continue sponsoring H‑1B hires and cover the new costs as business groups press the White House to reconsider the fee, while reports indicate some smaller firms are curbing foreign hiring because of the expense.
  • Canada, Germany and China are moving to attract skilled workers deterred by the U.S. fee hike, including China’s launch of a new K visa for science and technology talent.