New Trump Immigration Rule May Make Hiring H-1B Visa Holders Costlier for US Employers

US, Nov 4 : The Trump administration has unveiled a sweeping new immigration rule that could sharply increase the cost of hiring H-1B visa holders and employment based immigrants in the United States.

Under the proposed plan, included in a recent presidential proclamation, employers hiring new H-1B workers would face a $100,000 visa fee, on top of already substantial government charges and compliance costs. The Department of Labor (DOL) is also preparing to issue a rule that raises the minimum salaries for foreign workers, echoing controversial wage reforms attempted during Trump’s first term.

H-1B visas serve as a critical pathway for high-skilled international talent, particularly for graduates from US universities. Research shows that international students account for nearly 73% of full time graduate students in electrical and computer engineering. With the annual cap limited to 65,000 visas, plus 20,000 for those holding advanced US degrees, only a fraction of global talent gains access to this program.

How the New Rule Changes H-1B and EB-3 Costs

According to the proclamation, the $100,000 fee could prove prohibitive for most employers looking to hire new H-1B workers. However, US Citizenship and Immigration Services (USCIS) clarified that this fee will not apply to individuals switching visa categories within the US, such as students transitioning from F-1 to H-1B status.

The rule impacts both H-1B visa applicants and employment based green card candidates (EB-3 category). This move revives earlier Trump-era efforts to raise wage thresholds, which courts had previously blocked for violating the Administrative Procedure Act. The DOL’s new approach is expected to use a similar framework, inflating prevailing wage levels to the point where many employers might struggle to afford foreign talent.

Prevailing Wage Increases Under the Rule

The revised wage structure redefines the “prevailing wage”  the minimum salary an employer must offer a foreign worker. Entry-level (Level I) salaries could surge dramatically, with some roles exceeding $208,000 annually.

For example, software developers in San Jose or San Francisco could face wage requirements up to 62% higher than current market rates, while financial analysts in New York may need to earn more than triple the private sector average.

Immigration attorney Vic Goel explained that the DOL’s new formula effectively shifts even entry-level (Level I) wages to the equivalent of the old Level II category  meaning salaries across all experience levels would rise sharply.

Impact on Employers and Foreign Workers

A study by the National Foundation for American Policy (NFAP) found that the earlier version of the wage rule would have raised entry-level pay by 39%–45%, pricing out thousands of H-1B positions, especially in the technology, healthcare, and finance sectors.

The foundation warned that many companies could either move jobs overseas or avoid hiring altogether, undermining the US’s competitiveness in the global talent market.

Economists have also challenged the rule’s rationale. Madeline Zavodny, an economics professor at the University of North Florida, noted that empirical data consistently shows H-1B workers earn the same or higher wages than their US-born counterparts.

What This Means for the Future

By combining higher visa fees with inflated wage requirements, the Trump administration’s immigration overhaul could drastically reshape the cost and availability of high skilled foreign labor in the US.

While proponents argue the move protects American jobs, critics warn it could hurt innovation and productivity, especially in industries dependent on global expertise.