$100K H-1B Fees: Everything You Need to Know for the Software Industry

President Trump signed a proclamation on September 19, 2025, requiring a $100,000 fee for new H-1B visa applications, effective September 21, 2025. The order restricts H-1B entry for new applicants employers pay this fee.

This affects software companies hiring international developers. Companies that previously paid $5,000-$10,000 for H-1B applications now face over $100,000 per new hire. The fee targets what the administration calls "abuse" of the H-1B program by IT outsourcing companies.

The $100K fee applies only to first-time H-1B applications; renewals and extensions are not affected.

Let’s break down what this means, who it affects, and the options you can realistically consider.

Context & Why Now Matters

The proclamation targets what the administration calls systematic H-1B program abuse. The order cites specific data: 

• Foreign STEM workers doubled from 1.2 million to 2.5 million between 2000-2019, while overall STEM employment grew only 44.5%. 

• IT workers now represent over 65% of H-1B applications, up from 32% in 2003

• IT firms account for 65% of H-1B petitions in recent years, often outsourcing jobs and displacing U.S. workers.

Disclaimer: This content provides general information only and is not legal advice. Immigration law is complex and changes frequently. Consult a qualified immigration attorney for guidance on your specific situation.

Recent Move: $100,000 Fee by President Trump The September 19, 2025 proclamation requires a $100,000 fee for new H-1B applications for workers outside the US. The order specifically targets IT outsourcing patterns, citing companies that simultaneously laid off American workers while hiring H-1B workers.

Recent Move: $100,000 Fee by President Trump

Examples from the proclamation:

• One software company: approved for 5,000+ H-1B workers while announcing 15,000 layoffs.

• IT firm: approved for 1,700 H-1B workers while laying off 2,400 Oregon workers.

• Third company: cut 27,000 American workers since 2022, approved for 25,000+ H-1B workers since FY 2022.

The restriction expires in 12 months unless extended after departmental review.

Why It's Causing Major Industry Concerns

The timing creates immediate planning challenges since companies typically prepare H-1B applications months before the April lottery. The $100K one-time fee fundamentally changes the economics of international hiring.

White House Press Secretary Karoline Leavitt clarified key implementation details:

• One-time fee per petition, not annual.

• Current H-1B holders can travel normally without paying the fee.

• Applies only to new visas in the next lottery cycle.

• Renewals and current holders are exempt.

The policy pushes companies to weigh the $100,000 fee against hiring locally or outsourcing, which hits startups and mid-sized firms hardest. They now have to decide if certain specialized roles justify such a large upfront expense.

About two‑thirds of H‑1B visas go to tech roles, especially in STEM fields, with many positions in computing. Major employers include Amazon, Google, Meta, Microsoft, and Apple, which rely on these visas to fill specialized technical roles.

What Is the H-1B Visa (for Developers)

The H-1B visa allows US companies to temporarily hire foreign workers for "specialty occupations" that require specialized knowledge and at least a bachelor's degree.

Software developer was the most popular H-1B job category last year. For tech roles, this includes positions that require:

• Theoretical and practical application of specialized knowledge.

• Bachelor's degree in computer science, engineering, or related field.

• Skills typically gained through formal education, not just on-the-job training.

Examples: software engineers, data scientists, machine learning engineers, DevOps specialists.

Typical Requirements (Skills, Degree, Employer Sponsorship)

For workers:

• Bachelor's degree in computer science, engineering, or related specialty.

• OR foreign equivalent degree.

• OR work experience equivalent (roughly 3 years = 1 year college).

• OR professional license/certification in the specialty.

Employer must:

• Get Labor Condition Application approved by the Department of Labor.

• File Form I-129 petition with USCIS.

• Pay prevailing wage or actual wage, whichever is higher.

• Prove working conditions won't harm US workers.

• Notify existing workers about H-1B hiring.

Process timeline:

• Electronic registration in March (lottery system).

• If selected, file full petition.

• 3-year initial period, renewable once for 6 years total.

• Worker applies for visa at US consulate if outside country.

Annual limits: 65,000 regular visas + 20,000 for US master's degree holders.

How the New Policy Affects Software Developers

The $100,000 fee would not apply to every H-1B case, but it creates very different outcomes depending on the type of petition.

Who Is Impacted?

• New petitions filed after September 21, 2025. Employers filing new H-1B petitions for workers located outside the United States after this date must pay the $100,000 fee. This applies only to new petitions.

• Workers entering the U.S. for the first time. Beneficiaries of new petitions filed after September 21, 2025 must have the fee paid before they can receive their visa and enter the country.

• Practical impact: The cost creates a major barrier for first-time applicants. Employers now weigh whether the position justifies the additional expense compared with hiring locally or using remote talent. 

Entry-level and mid-level roles are less likely to be sponsored, while highly specialized positions in areas like AI/ML, advanced security, and other scarce skills remain candidates for sponsorship.

What’s Not Impacted?

• Current H-1B holders and approved petitions before September 21, 2025. These cases are not affected by the new fee. Workers with valid status can continue to travel and work under existing conditions.

• Extensions, renewals, and transfers. The $100,000 fee does not apply to these cases. Employers still need to cover regular filing and legal costs.

• Petitions filed before September 21, 2025. Cases submitted before the effective date are not subject to the new fee, even if the worker is outside the United States.

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Change in Wages & Prevailing Wage Rules

Under current rules, employers must pay H-1B workers the higher of the Department of Labor’s prevailing wage for the role in that location or what the company already pays U.S. workers in the same job. That requirement has not changed.

What is new is a proposed regulation from DHS (September 23, 2025). It would change how the annual H-1B lottery works:

• Wage Level IV (highest): 4 entries in the selection pool.

• Wage Level III: 3 entries.

• Wage Level II: 2 entries.

• Wage Level I (lowest): 1 entry.

This system would not raise the prevailing wage itself. Instead, it gives higher-paid petitions better odds of selection. 

The proposal is open for public comment and would only take effect after the rulemaking process is complete.

Outsourcing, Offshoring & Global Talent Strategy

The proposed $100,000 fee increases the cost of sponsoring new H-1B workers. At that level, the expense is comparable to several months of outsourced development in major markets, which changes the economic calculation for some roles.

Will Companies Outsource More Because of the Increased Costs?

Paying $100,000 for one H-1B petition equals six to twelve months of a full team of outsourced development in many regions. 

That cost comparison creates clear pressure to shift routine development or support work abroad. Companies could lean more toward nearshore and offshore models in response, since these options are already widely established in the industry.

Core functions such as system architecture, security engineering, and customer-facing roles typically remain in-house.

Best Countries / Regions to Outsource Software Dev

• Latin America (Colombia, Mexico, Argentina): Time zone overlap with the U.S. and strong English proficiency make collaboration smoother. Senior developer rates in the region typically range from $29 to $82 per hour.

• India: Large talent pools and lower costs remain advantages. Hourly rates typically range from $20 to $40, though real-time collaboration can be harder due to the time zone difference.

• Philippines: Strong English proficiency and competitive rates, usually $20 to $35 per hour, with similar time zone challenges as India.

• Eastern Europe (Poland, Ukraine, Romania): High technical skill levels and partial time zone overlap with the U.S. Hourly rates are higher, generally $40 to $70.

  
  

H-1B Visa Costs: Required and Optional Fees

The proposed $100,000 fee comes on top of existing H-1B costs. Here’s how the full cost of sponsoring an H-1B worker adds up.

Required Fees

Fee	Amount	Who Pays
$100K Application Fee	$100,000	Employer
Registration Fee	$215	Employer
Basic Filing Fee (Form I-129)	$780 (large employers) / $460 (small employers & nonprofits)	Employer
ACWIA Training Fee	$750 (≤25 employees) / $1,500 (>25 employees)	Employer
Fraud Prevention Fee	$500	Employer
Public Law 114-113 Fee	$4,000	Employer
Asylum Program Fee	$600 (>25 employees) / $300 (≤25 employees) / $0 (nonprofits)	Employer

Optional Fees

Fee	Amount	Who Pays
Premium Processing	$2,805	Employer or Employee
H-4 Dependent Fees	$850 (legal) + $470 (filing)	Employee

What Software Developers Should Expect?

International developers may need to budget for relocation, since employers do not always cover those expenses in full. State taxes also differ: California and New York have higher rates than states like Texas or Florida. 

Legal consultation for H-1B preparation usually ranges from $1,500 to $3,000, and certified translations of degrees or employment records may be required.

The H-1B program still provides access to U.S. jobs, but policy changes create uncertainty. High fees may also lead some companies to consider alternatives such as outsourcing or remote hiring.

Top Outsourcing / Nearshoring Companies for Software Work

Nearshore firms in Latin America and other regions play a growing role in global talent strategies. The following are the top outsourcing/nearshore providers with software development experience across industries.

Company	Locations (Main)	Key Services
Leanware	Bogota, Colombia	AI consulting, custom software, mobile & web apps, staff augmentation
ZoolaTech	USA, Mexico, Ukraine	Custom software, cloud migration, DevOps, AI
Ideas2IT Technologies	USA, Mexico, India	App modernization, enterprise apps, cloud, AI
Icalia Labs	USA, Mexico	Custom apps, mobile development, UX/UI
MAS Global Consulting	USA, Colombia	Agile dev, testing, microservices, AI/ML
Ateliware	Brazil	Custom apps, DevOps, Dynamics 365
nCube	Eastern Europe, LatAm	Software dev, team augmentation, R&D
Future Processing	Poland, UK, USA	Consulting, digital products, cloud, AI/ML
Evozon	Romania	Web dev, UX/UI, ERP, data science
Software Mind	USA, Costa Rica, EU	Software dev, consulting, cloud integration

Key Takeaways for Companies and Developers

• The $100,000 fee applies to first-time H-1B applicants outside the U.S.

• Outsourcing is likely to rise, with nearshoring in Latin America or Canada offering better time zone and cultural alignment.

• Developers should diversify options: explore L-1, O-1, or remote roles if H-1B becomes cost-prohibitive.

• Startups must adapt: budget for higher visa costs or build distributed teams.

If you are a developer seeking an H-1B or a company planning to sponsor one, you should consult an immigration professional to understand the implications and ensure compliance.

For a detailed analysis of outsourcing/nearshore development as an H-1B alternative, organizations can assess regional talent pools, cost structures, and implementation timelines to inform their hiring decisions. 

You can also connect with our team for guidance on evaluating these options against your specific technical requirements

Frequently Asked Questions

Does the $100,000 H-1B fee apply to all software developer applications?

Yes, the fee applies to all new H-1B petitions for software developers, regardless of experience level or salary. Renewals and transfers are exempt.

Are current H-1B holders and renewals affected by Trump’s new policies?

No, current holders can renew without the new fee. Only new applications filed after September 21, 2025, are subject to the $100,000 charge.

Is outsourcing to Latin America really cheaper than paying the H-1B fees?

For most development projects, yes. The $100,000 fee equals 8-15 months of a full team of outsourced development work in Latin American markets, depending on the complexity and team size.

When do these H-1B changes take effect for 2025 applications?

The changes took effect on September 21, 2025. Applications filed before this date follow the previous fee structures.

What are the best alternatives to H-1B visas for hiring software developers?

Nearshoring and remote hiring alternatives are becoming practical strategies in response to stricter H-1B regulations. Options include O-1 visas for exceptional ability (no fee increase), L-1 visas for intracompany transfers, remote work arrangements, and outsourcing partnerships with international development teams.