On September 19, 2025, President Trump issued a proclamation restricting the entry of anyone seeking to enter or reenter the U.S. in H-1B status without payment of a new $100,000 fee. The proclamation, titled “Restriction on Entry of Certain Nonimmigrant Workers” became effective on 12:01 a.m. EDT Sunday, September 21, 2025, and is set to expire after one year. The administration says the goal is to reduce reliance on foreign labor and raise the cost of outsourcing, while business groups warn of hiring freezes, canceled projects, and a push to move work abroad
On September 20, 2025, USCIS and CBP issued Memoranda which noted that the proclamation applies to petitions filed after 12:01 am EDT on September 21,2025. Specifically, it clarifies that “[t]his Proclamation only applies to petitions that have not yet been filed.”
While the details regarding implementation have yet to be determined, below are key points and considerations:
- The proclamation is effective 12:01 a.m. EDT September 21, 2025. It expires in 12 months but may be extended.
- The proclamation targets entry of H-1B workers into the U.S. who are currently outside the U.S. pursuant to INA 212(f).
- The restriction on entry applies only to H-1B workers who attempt to enter the U.S. after the effective date. It does not appear to impact H-1B workers already in the U.S.
- However, it could impact those who subsequently leave and try to reenter the U.S. in H-1B status during the effective period of the proclamation.
- USCIS shall not adjudicate petitions unless they are accompanied by proof of payment of the $100,000 fee for H-1B workers who are currently outside of the U.S.
- There are no travel restrictions for current H-1B visa holders arising from this proclamation.
- Extensions of stay inside the U.S., including change of employer, change of status and amended petitions —where the beneficiary remains in lawful H-1B status—are not expressly covered, so unless instructed otherwise, they appear to be exempt.
- Within 30 days of the next H-1B lottery (i.e., March 2026), the Secretary of State, the Attorney General, the Secretary of Labor, and the Secretary of Homeland Secretary shall jointly submit a recommendation to the President as to whether renewing or extending the restriction on reentry is in the best interest of the U.S.
- The Secretary of State shall issue guidance to prevent the misuse of B visas by beneficiaries of approved H-1B petitions who have start dates prior to 10/01/2026 – presumably to prevent them from entering and filing a change of status and avoiding the fee.
In addition, the Secretary of Labor, in conjunction with the Director of the Department of Homeland Security, has initiated rulemaking to revise the prevailing wage levels and to prioritize the admission of high-skilled and high-paid nonimmigrants for the H1B lottery held each March. Currently, the H1B visa program is limited to just 85,000 new slots each year, although higher education (Masters and Doctorate degrees) and research-based organizations are exempt from the cap. Employers whose registrations are selected in the annual randomized lottery can then move forward with filing a petition.
The proposal, released on Tuesday, September 23, 2025, would no longer base visa lottery allocation strictly on highest wages offered, instead it would assign each prospective worker to four wage bands based on Labor Department surveys. The odds of selection would now be based on the wage level to which they are assigned after submitting a Prevailing Wage Determination form through the Department of Labor. Workers in the highest of the four wage levels – which currently earn an average annual salary of $162,528 – would be entered into the selection pool four times; those in the lowest tier would be entered only once.
The administration has stated that the new proposed process “would favor the allocation of H-1B visas to higher skilled and higher paid aliens, while maintaining the opportunity for employers to secure H-1B workers at all wage levels.” However, business groups have warned that the wage-based proposal would eliminate prospects for employers to hire early-career professionals who have recently graduated from U.S. colleges and universities. Business groups also object to use of Department of Labor wage levels as a proxy for a worker’s skill level. Furthermore, immigration attorneys have warned the proposal is unlawful, regardless of the wisdom of tying H-1B selection to wages, because the Immigration and Nationality Act calls for issuing visas in the order in which petitions are received.
In related news, on September 22, 2025, the U.S. Department of Labor announced the launching of an H-1B enforcement initiative intended to “safeguard the rights, wages, and job opportunities of highly skilled American workers by ensuring employers prioritize qualified Americans when hiring workers and holding employers accountable if they abuse the H-1B visa process.” Labeled “Project Firewall,” the Department of Labor will begin conducting investigations of H-1B employers, striving to hold them accountable for any immigration violations and to protect the rights of American workers. Violations could result in the collection of back wages owed to affected U.S. workers, civil money penalties, and/or debarment from future use of the H-1B program for a prescribed period of time.
To achieve its stated purpose, DOL announced that it will share information and coordinate with relevant government agencies, as permitted by law, and ensure the law is properly enforced. This program will be directed by the Office of Immigration Policy, Employment and Training Administration, and Wage and Hour Division of the Department of Labor in collaboration with federal partners, including the Civil Rights Division of the Department of Justice, the Equal Employment Opportunity Commission, and U.S. Citizenship and Immigration Services
Business groups and immigration advocates are preparing lawsuits arguing the new rules harm competitiveness, exceed executive authority, and overstep congressional rulemaking; however, those challenges will take time to be resolved in litigation. For now, the proclamation stands and companies are moving to comply. McMahon Berger will continue to monitor developments and implications of this action and provide updates as they occur. Should you have any questions about the impact of this proclamation on current or future employment practices, please contact the lawyers at McMahon Berger.
The St. Louis employment attorneys at McMahon Berger have been representing employers across the country in labor and employment matters for over sixty years and are available to discuss these issues and others. As always, the foregoing is for informational purposes only and does not constitute legal advice regarding any particular situation as every situation must be evaluated on its own facts. The choice of a lawyer is an important decision and should not be based solely on advertisements.
