H-1B Visa News: New rules to come into effect after 24 hours, find out which companies will be exempt and which will not..

US President Donald Trump signed a new executive order on Friday, changing the rules for H-1B visas. Now, a $100,000 fee will be required for H-1B visas. The executive order cites abuses of H-1B visas and details the reasons for the fee increase. It states that abuses of H-1B visas were lowering the wages of American workers, depriving young people of jobs, and posing a threat to national security. Following Trump's new order, everyone wants to know when the new H-1B visa rules will come into effect. Will any companies be exempt from the increased visa fees, and what will be the criteria for determining the US national interest?

The President's executive order states that the new H-1B visa rules will be effective September 21, 2025, at 12:00 a.m. U.S. time on September 21. In India, that time will be 9:30 a.m. on September 22nd. The new rule will remain in effect for one year. The Department of Homeland Security and the Ministry of State will oversee this process. If a company fails to pay the $100,000 fee for hiring a foreign employee, its application will not be accepted.

Who will be exempt from the increased H-1B visa fee?

The executive order issued by Donald Trump states that the Secretary of Homeland Security will have the power to waive this requirement if hiring foreign employees in a particular company or industry is in the US interest and does not pose a security threat. This means that they can hire a non-US employee without paying the $100,000 fee.

How will national interest be determined?
The executive order does not specify how US interests will be determined. The executive order states, “The restrictions imposed under subsections (a) and (b) of this section shall not apply to any alien individual, all aliens employed by any company, or all aliens employed in any industry, if the Secretary of Homeland Security, in his or her sole discretion, determines that employing such aliens as H-1B specialty occupation workers is in the national interest and does not pose a threat to the security or welfare of the United States.”

Why were H-1B visa fees increased?
This also poses a risk of weakening America's dominance in the field of science and technology. It has been claimed that increasing H-1B visa fees will pressure companies to hire foreign workers only when they truly need highly skilled specialists, not simply for cheap labor.
The executive order issued by President Donald Trump detailed the reasons for the substantial increase in H-1B visa fees. The order stated that this action was taken because of widespread abuse of the H-1B visa. Companies were replacing American workers with cheaper foreign workers. This not only impacted American jobs but also posed a threat to economic and national security.

Trump's executive order states that the H-1B visa was originally designed to bring foreign workers to the United States temporarily for high-skilled jobs. This meant that when qualified American workers were not available in a particular field, companies could hire foreign experts. However, over the past few years, this system has deviated from its original purpose. It began to be misused, and large companies, especially in the IT sector, began using it to replace their permanent American employees with cheaper foreign workers.

Increase in the Share of Foreign Workers
The US President's executive order provides data showing how the number of foreign workers in STEM (science, technology, engineering, and mathematics) fields in the US increased from 1.2 million to 2.5 million between 2000 and 2019. While total STEM employment increased by only 44.5% during this period, the share of foreign workers in computer and math-related jobs increased from 17.7% in 2000 to 26.1% in 2019. Experts believe that the biggest reason for this increase was the excessive use and misuse of H-1B visas.

The IT Sector Has the Greatest Impact
IT companies made the most use of the H-1B system. In 2003, the share of IT workers employed under this visa was 32%, which has increased to an average of more than 65% over the past five years.

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