H-1B $100k Fee Pushes U.S. Firms Toward Employer of Record Solutions
The new $100,000 H-1B visa fee is reshaping how U.S. firms access global talent, driving many toward offshore hiring solutions like Employer of Record (EOR).
By Ro Elvinia
What is the new $100,000 H-1B visa fee?
On September 19, 2025, the Trump administration announced a new executive order under Section 212(f) of the Immigration and Nationality Act, introducing a significant $100,000 fee increase for new H-1B visa applications. This temporary visa allows highly skilled foreign nationals to work in the United States. For U.S. employers across industries, this development has reshaped global hiring strategies and accelerated the shift toward offshore solutions such as Employer of Record (EOR) services.
The order requires employers of newly approved H-1B visa holders to pay a $100,000 entry fee when those workers arrive in the United States. Foreign nationals with H-1B petitions filed before September 21, 2025, are exempt, and existing H-1B workers are unaffected if they remain continuously in the U.S. However, if they travel abroad and reenter, the employer must pay the fee. The policy does not apply to other visa categories such as the L-1, TN, or E-2, though these visas are more limited in scope.
The rollout has raised concerns due to uncertainty about how the fee will be collected and the lack of exemptions beyond potential national-interest waivers. Healthcare groups, for example, have already urged exemptions for physicians working in underserved communities.
How does the H-1B fee affect U.S. employers?
The new H-1B fee has triggered widespread concern across U.S. industries. Larger corporations, especially in the technology sector, have expressed frustration, though many can absorb the added costs. For small businesses, startups, and nonprofits, however, the fee represents a far greater obstacle, directly limiting their ability to recruit the skilled foreign workers they depend on.
The impact extends beyond private enterprise.
- Healthcare providers warn that the policy could deepen critical staff shortages, particularly in underserved and rural communities.
- Education and research institutions caution that the measure risks weakening the United States’ position as a global hub for talent and innovation.
For many employers, the $100,000 H-1B fee is more than a financial burden. It acts as a strategic roadblock to growth, workforce resilience, and long-term competitiveness.
Industry breakdown of H-1B Applications
Data from the U.S. Department of Labor underscores just how widely the impact will be felt:
|
Sector |
Share of H-1B Applications |
|
Professional, scientific & technical services |
46.3% |
|
Manufacturing |
11.7% |
|
Information services |
9.7% |
|
Finance & insurance |
8.6% |
|
Educational services |
6.5% |
|
Healthcare & social assistance |
4.3% |
|
Other sectors (retail, logistics, construction, etc.) |
Remaining share |
The data makes one thing evident: the new fee is not just a technology issue. Its reach extends into nearly every industry, reshaping the workforce strategies of employers nationwide.
Why are U.S. firms exploring alternatives?
With the steep new costs of H-1B hiring, U.S. employers are reassessing their options. Some are exploring alternative visa categories, but these are limited. Others are pausing foreign hires altogether, though this risks creating critical skill gaps.
For U.S. firms, EOR is becoming the most practical choice, allowing access to talent abroad without H-1B risks or establishing local entities. This gives companies flexibility, cost savings, and continued access to the global talent pool.
Why is Australia a strong talent market for offshore hiring?
Australia is emerging as one of the most attractive global talent hubs for U.S. companies exploring offshore hiring. The country offers:
- A highly educated workforce with strong English proficiency.
- Deep talent pipelines across professional, scientific, and technical services, including IT, engineering, finance, and education.
- Alignment with sectors most impacted by the H-1B fee increase in the United States.
In addition, Australia’s time zone advantage enables overlapping work hours with U.S. firms, particularly those on the West Coast, supporting real-time collaboration. Combined with its stable regulatory environment and strong compliance standards, Australia provides U.S. employers with a reliable, cost-effective market for accessing top-tier talent without the barriers of U.S. immigration policies.
How ABN Australia’s EOR services help
The Trump administration’s 2025 Executive Order has reshaped the way U.S. employers think about global hiring. While large corporations may absorb the costs, smaller businesses face difficult choices. Across industries, the need for skilled workers remains, and solutions are required to keep growth on track. EOR services, particularly in talent-rich markets like Australia, provide a practical answer.
ABN Australia provides U.S. companies with a simple, compliant way to hire in Australia through our EOR services. We handle employment contracts, payroll, taxation, and compliance with local labor laws, allowing businesses to build teams quickly and cost-effectively.
Contact ABN Australia today to learn more on how our EOR solutions can help you access Australia’s skilled workforce and navigate the changing global hiring landscape.
Published: 02nd Oct 2025 | Last updated: 02nd Oct 2025
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