A major shake-up is coming for businesses hiring foreign workers. The White House just announced a presidential order, signed September 19, 2025, that puts new limits on who can enter the U.S. on an H-1B visa. Starting September 21, 2025, at 12:01 a.m. Eastern Daylight Time, companies will have to pay a steep USD $100,000 fee for H-1B visa requests if the worker is outside the United States. This move aims to fix what the government calls a broken system, hoping to adjust salaries and change how these workers are prioritized. This restriction will last for twelve months unless the government decides to extend it.
The new rule means a significant cost for companies looking to bring in specialized talent from abroad. The White House argues that the H-1B program, which helps fill high-skill jobs, has been misused. They believe it has led to lower wages and has pushed American workers out of jobs, especially in science, technology, engineering, and mathematics (STEM) fields, and in information technology (IT). The government says it wants to make sure the program truly benefits the U.S. economy and its workforce.
🚨🧾 Proclamation: mandatory $100K payment for H-1B from outside the U.S.
Effective from Sep 21, 2025 for 12 months.
Discretionary exceptions.
DHS and Labor to verify payments
Impact on IT/AI/crypto/health. pic.twitter.com/BsMIuzZjds— Diario฿itcoin (@Blaze Trends)
The administration backs its claims with some striking numbers. Between 2000 and 2019, the number of foreign workers in STEM in the U.S. nearly doubled. It went from 1.2 million to almost 2.5 million. During the same time, overall STEM employment grew by only 44.5 percent. The White House also points out that foreign workers in computing and math jobs jumped from 17.7 percent in 2000 to 26.1 percent in 2019. They say the H-1B program was a major reason for this increase.
The government specifically calls out IT companies and outsourcing firms. They claim these businesses have manipulated the H-1B system. In fact, the percentage of IT workers within the H-1B program grew from 32 percent in fiscal year 2003 to an average of more than 65 percent over the last five fiscal years. This dramatic shift highlights the focus of the new policy.
The Nuts and Bolts of the New Rule
This new proclamation uses specific parts of the Immigration and Nationality Act (INA), sections 212(f) and 215(a). These sections allow the President to limit who can enter the country. The rule makes it clear: no entry for H-1B non-immigrant workers unless that USD $100,000 payment is made. While the restriction has a one-year lifespan, it could be extended. There are some narrow exceptions. The Secretary of Homeland Security can allow a hire if it is deemed to be in the national interest.
Employers now have more paperwork to deal with. Before sending in any H-1B petition for workers outside the U.S., they must get and keep proof of this payment. The Department of State will check for this payment when they process visa applications. On a broader scale, the Department of Labor will review current wage levels for H-1B jobs. The Department of Homeland Security will also make sure to prioritize highly skilled and well-paid foreign workers for admission.
Stories and Numbers Behind the Decision
The White House didn’t just pull these ideas from thin air. They mentioned a study that found H-1B workers in entry-level positions often made 36 percent less than traditional full-time workers. They also highlighted examples of major tech companies. One firm, approved for over 5,000 H-1B workers in fiscal year 2025, also announced more than 15,000 layoffs. Another company, which got nearly 1,700 H-1B approvals in fiscal year 2025, let go of 2,400 American workers in Oregon. A third firm cut about 27,000 jobs since 2022, but still received over 25,000 H-1B approvals since fiscal year 2022.
The official statement also described American employees who said they had to train the foreign workers who were replacing them. These workers reportedly signed confidentiality agreements just to get their severance pay. This paints a picture of unfair practices that the new policy aims to stop.
More Than Just Jobs: National Security and the Labor Market
The White House believes that the problems with the H-1B program go beyond just wages and job opportunities. They argue it can even threaten national security. They mentioned that law enforcement agencies have investigated outsourcing companies for visa fraud, money laundering, and even organized crime under the RICO Act. This adds a serious dimension to the new rules.
An older study from 2001, also cited, estimated that American computer scientists might have seen wages increase by 2.6 percent to 5.1 percent. Their employment could have been 6.1 percent to 10.8 percent higher if foreign workers hadn’t entered the computer science field in such numbers. Looking at today’s job market, unemployment rates for computing jobs rose from an average of 1.98 percent in 2019 to 3.02 percent in 2025. The Federal Reserve Bank of New York also shows high unemployment for recent graduates in computer science (6.1 percent) and computer engineering (7.5 percent).
What This Means for Tech, Crypto, and AI
For technology companies, especially blockchain startups and artificial intelligence projects, this new rule will make hiring foreign talent more expensive. The USD $100,000 payment acts as an immediate financial hurdle for many international hires. This could slow down how quickly companies can bring in new team members from outside the U.S.
In the world of cryptocurrency and blockchain, where remote teams and global hiring are common, this proclamation might push companies to use more remote work models that don’t need visas. It could also encourage firms to move talent to other countries with easier immigration rules. Outsourcing and IT consulting firms, which the proclamation specifically mentions, may need to rethink their business strategies. Stricter checks on payments and new admission priorities could force them to change how they operate.
Finally, the review of wage levels and the preference for highly paid workers could help senior and very specialized professionals. However, it might make it harder for recent graduates to enter the American job market.
What’s Next: Putting It All into Practice and Possible Court Battles
The proclamation sets out a timeline for what happens next. Within 30 days after the H-1B lottery following this announcement, several government secretaries will give their advice on whether to extend or renew the restriction. The Department of Homeland Security and the Department of State will handle putting these new rules into action.
The document states that these actions will follow existing laws and depend on available funds. It also says that the proclamation does not create any rights that people can use to sue the government in court. However, it’s common for such big policy changes to face legal challenges. Companies and workers who feel their economic and contract interests are hurt often take these issues to federal courts. The White House and federal agencies will need to work closely to check payments and required documents, while the Department of Labor starts reviewing wage levels under the INA.
You can read the full presidential proclamation from the White House’s website.