The $100,000 H-1B Proclamation: Short-Term Shock, Long-Term Balance

A Jolt to the Student Dream

When President Trump signed a proclamation tying a $100,000 fee to H-1B petitions, the shock was instant. Families who have borrowed heavily, students who staked their futures on U.S. study, all asked the same question: Will this crush our dream?

Read More…

As your mentor, I want to tell you this is serious, but not the end of the road. Let’s look at what the proclamation really does, how it may affect you, and why there are reasons to hope for balance in the months ahead.

What the Proclamation Really Says

1. It is a Proclamation, not an Executive Order

• Effective Sept 21, 2025, at 12:01 a.m. ET.
• Valid for 12 months only, though it could be extended.

2. It is framed as a travel restriction

• It stops individuals from entering or re-entering the U.S. in H-1B status unless the petition includes the $100,000 payment.
• In plain words, the gate slams shut on H-1B entry without that check.

3. Students inside the U.S. may not be directly affected

• If you are on F-1 or OPT and your employer files a Change of Status to H-1B while you remain inside the U.S., you are not subject to the $100,000 charge.
• The proclamation applies to those outside the U.S. or attempting to enter.

4. Per petition, not clearly “annual”

• Despite headlines, the text ties the $100k to H-1B petitions for those abroad.
• That means it’s likely per petition filed for entry, not an automatic $100k every year for every H-1B worker.

Short-Term Pain: What This Means Now

• For companies: Expect hiring freezes and reduced sponsorships. Even if COS inside the U.S. is safe, uncertainty makes employers hesitant.
• For students abroad or traveling: If you leave and try to return on an H-1B, your employer faces a $100,000 hit. Many will simply refuse.
• For students inside the U.S.: If you stay put and file a COS, you may avoid the fee. But be warned: travel is risky. If you exit and re-enter, the proclamation applies.
• For families with loans: I know this feels crushing. You planned for H-1B as a repayment bridge. This policy shakes that bridge.

In the next few months, treat this as a stormy season: unpredictable, uncomfortable, and financially painful.

Medium-Term: Courts and Congress Step In

America has checks and balances, and they often kick in after the political theatre.

• Courts: Presidents cannot impose massive fees without Congressional approval. This proclamation is vulnerable to challenges under the Administrative Procedure Act and “separation of powers”. Courts have blocked or narrowed similar executive actions before — the Travel Ban (2017), DAPA (2012), and even USCIS fee hikes (2020).
• Congress & Lobbying: Big Tech and universities depend on H-1Bs. In 2022, over 70% of H-1Bs were granted to Indians, mostly in tech. Companies like Google, Amazon, and Microsoft will lobby hard. History shows lobbying can soften or overturn immigration crackdowns.

So while the proclamation is real today, the legal and political system is already grinding into action.

Long-Term Scenarios (12–24 Months)

1. Struck Down (Best Case): Courts find the $100k exceeds presidential authority. The proclamation expires or is blocked.

2. Watered Down (Middle Case): Survives in a narrower form — applying only to new entries from abroad or to very high-salary cases.

3. Full Enforcement (Worst Case): Survives intact. Smaller companies abandon H-1Bs; only mega-caps pay the premium.

What You Should Do

• If you are inside the U.S. (F-1/OPT): File a Change of Status, avoid unnecessary travel, and keep building your profile.
• If you are planning to go: Be realistic — the U.S. pathway is uncertain. Keep Canada, Europe, and Australia in your back pocket.
• If your family has loans: Don’t despair. OPT is untouched, COS is safe, and courts may give relief. Your career path is still viable, though bumpier.

A Mentor’s Note of Hope

This proclamation feels like a storm, and right now you may see only the rain. But storms pass. America’s courts, Congress, and companies have powerful reasons to fight this, and history shows us they often succeed.

In the short term, expect pain. But in the long run, balance usually returns.

Your dreams are not broken — they are being tested. And I believe, as always, that the courage of students, the wisdom of institutions, and the push of justice will find a way through.

Hold steady. Stay flexible. And remember: storms end, skies clear, and opportunities rise again

_____________________________________________________________________________________________________

Presented by IMFS — India’s most trusted study abroad guide since 1997.

Authored by K. P. Singh | Mentor | Educationist | Founder – IMFS

🌍 Empowering the Global Indian Student www.imfs.co.in