The Trump administration introduced a sweeping change to the H-1B visa program on September 19, 2025. Under the new policy, companies that sponsor foreign professionals will have to pay a $100,000 fee for every H-1B employee they hire. With this fee being so steep, many employers will be discouraged from sponsoring new H-1B applicants.

As a result, companies are expected to reduce the number of H-1B petitions they file, leaving many highly skilled foreign nationals uncertain about their future in the United States. With H-1B visas becoming harder and more expensive to keep, EB-5 is now viewed as a straightforward ticket to live and work in the U.S. long term.

In this article, you will learn about the Trump administration’s new H-1B policy and what this shift means for the future of the EB-5 program.

A Closer Look at the Trump Administration’s New H-1B Rules

Employers seeking to sponsor new H-1B workers will now have to pay a $100,000 fee for each petition. That’s a sharp increase from the previous range of $2,000 to $5,000. The new rule took effect on September 21, 2025, for all new petitions filed after 12:01 a.m. Eastern Time. It will remain in place for 12 months unless extended.

According to the administration, this change is part of a broader effort to reform U.S. immigration policy, particularly in the high-skilled worker category. The stated goal is to curb visa misuse, protect American workers, and refocus the H-1B program on genuinely high-value, high-wage positions. As the USCIS director noted in a September 20 memorandum, the rule was issued “to address systemic abuse of H-1B nonimmigrant visas.”

Clarifications and Early Reactions

The sudden rollout caused widespread confusion. Furthermore, many employers and applicants weren’t sure whether the fee was annual or one-time, or if it applied to renewals and existing visa holders. The White House later confirmed that it’s a one-time fee per petition, not annual, and it applies only to new H-1B applicants, not renewals or existing holders.

As USCIS noted plainly, the proclamation “does not apply to aliens who … are the beneficiaries of currently approved petitions, or are in possession of validly issued H-1B non-immigrant visas.” Even after this clarification, many workers and companies were caught off guard.

Reuters reported that H-1B workers abroad, particularly those from India and China, were “racing back to the U.S.” in the hours before the rule took effect, with some canceling or cutting short travel plans to avoid being locked out or charged the new fee.

Some major companies circulated internal memos urging employees outside the country to return before the September 21 deadline and advising those already in the U.S. to postpone international travel until further notice.

Industry Concerns and Mixed Reactions

Reactions have been divided, though many lean toward concern or opposition. In the tech industry, where H-1B visas are heavily used, leaders say this will sharply raise costs, especially for smaller firms and startups that don’t have massive budgets to absorb these new fees. There are similar worries that this change will make the U.S. less attractive to global talent, slow down hiring, or push companies to offshore work.

Some economists warn that the policy could hurt U.S. economic growth, innovation, and competitiveness. Others, however, argue that the fee will help level the playing field for U.S. workers by reducing misuse of the visa system. Commerce Secretary Howard Lutnick said the new rule would make the job market fairer for domestic workers.

Still, employer groups like the U.S. Chamber of Commerce and India’s Nasscom have voiced strong objections, saying it is “concerned about the impact on employees, their families and employers” and that it is “working with the Administration and our members to understand the full implications and the best path forward.”

Industry bodies have also warned that the abrupt implementation of the fee, and the lack of clarity around which petitions are covered or will be exempted, are creating “considerable uncertainty for businesses, professionals, and students across the world.”

Nonetheless, the proclamation includes certain exemptions, which may be granted at the discretion of key officials. For instance, the Secretary of Homeland Security may exempt specific petitions if doing so is considered to serve the national interest.

How This Change Affects the Future of the H-1B Program

The current administration’s intentions are clear: they want H-1B visas to be more expensive and more selective. For those seeking or already holding these visas, that makes predicting the program’s future more difficult. The H-1B visa has always been temporary and employer-dependent, but this new policy makes it even more restrictive.

Many smaller or mid-sized companies will struggle to justify the $100,000 sponsorship cost, so the number of new petitions is expected to drop sharply. For American workers, this could mean more job openings. But for foreign professionals hoping to build a career in the United States, the H-1B path has suddenly become less reliable.

This tightening of opportunities puts the spotlight on the EB-5 program, one of the few immigration options that remains practical in 2025. Unlike H-1B, EB-5 does not rely on employer sponsorship and leads directly to permanent residency.

With a one-time investment of $800,000 in a qualifying project, EB-5 applicants and their families can secure Green Cards within months. EB5AN’s investors, for example, have received Green Cards in as little as nine months and work and travel permits in only 33 days.

Why Many H-1B Holders Are Turning to EB-5

The shift in H-1B policy especially affects Indian nationals, who make up about 71% of all approved H-1B visa holders, most of them in the tech sector. These are the workers most exposed to the new $100,000 fee and its ripple effects. Many who once viewed H-1B as the only route to live and work in the U.S. are now seeing EB-5 as a more beneficial and secure alternative.

As permanent residents, EB-5 investors can build their careers freely without depending on an employer or facing visa lottery uncertainty. Under the new H-1B structure, a foreign worker’s future depends on an employer willing to spend $100,000 to sponsor them. In the meantime, the visa itself remains temporary, subject to renewal, and limited to a specific role within a specific industry.

By contrast, EB-5 offers permanent residency through a single investment. You can work for any company, start your own business, or switch industries without risking your immigration status. It gives professionals the freedom to control their careers rather than rely on a sponsor’s decision.

Comparing EB-5 and H-1B Pathways

Here is a closer look at the differences between the EB-5 and H-1B visas:

S/N	Features	EB-5 Immigrant Investor Program	H-1B Visa
1.	Financial Requirement	One-time $800,000 investment in a qualifying project.	Employers must now pay $100,000 per petition under Trump’s September 19 proclamation.
2.	Result	Permanent U.S. Green Card for the investor and their immediate family.	Temporary non-immigrant work visa, valid for up to 3 years at a time, requires renewal.
3.	Residency Status	Live and work permanently anywhere in the United States.	Status tied to visa approval; no direct path to permanent residency without a separate Green Card process.
4.	Employer Sponsorship	Not required because it is independent of an employer.	Mandatory because the visa depends entirely on the employer’s continued support.
5.	Career Flexibility	Free to work for any employer in any industry or start a business.	Restricted to the sponsoring employer and the specific approved position.
6.	Security	Stable path to U.S. residency, not subject to annual lottery or renewals.	Highly competitive lottery; now, far fewer petitions are expected due to the high sponsor fee.
7.	Timeline	Green Card approval is possible in only months.	Annual lottery; long waits are common, especially for Indian nationals.
8.	Family Benefits	Spouse and children under 21 also receive Green Cards.	Spouses may apply for a dependent visa (H-4) with limited work authorization in many cases.

Transition From Uncertainty to EB-5 Security

Although the goal of Trump’s introduction of a $100,000 fee for the H-1B visa is to control demand and protect domestic workers, it may lead to limited opportunities for professionals seeking to work in the U.S. In contrast, the EB-5 Immigrant Investor Program continues to operate under stable and transparent rules.

The first step to making your journey to permanent residency even smoother is to partner with a reputable regional center. That’s where EB5AN comes in. Our decade-plus track record of compliance, transparency, and investor support has helped over 2,700 families, including those of global professionals, get Green Card approvals.

Schedule a free consultation with us to better understand how EB-5 offers the security of building your future in the U.S.