This afternoon, the White House issued an Executive Order (EO) that impacts the H-1B program – one of the most popular visa programs for U.S. employers hiring professionals. The H-1B program is available where a U.S. employer offers a specialty occupation position, one that requires at least a degree in a specific field, and where the employer promises to pay a wage that is at or above the prevailing wage for the geographic area in which the worksite is located. Each year there is more demand than availability of such visas. The EO frames the measure as a response to widespread abuse of the H-1B program, especially by IT outsourcing companies, which the administration argues has used it to displace American workers, drive down wages, and create national security risks.
Action Items:
- Anyone who is outside of the US and seeks to enter the US in H-1B status should return to the US ASAP – no later than 12:01AM (EDT) on September 21, 2025.
- Anyone who is in the US in H-1B status should not travel outside of the US until further clarification is provided.
Key Takeaways:
- Effective Date and Duration: 12 months starting 12:01AM (EDT) on September 21, 2025.
- Restriction on Entry: Anyone seeking to enter the US after the effective date will have to pay $100,000. Our reading of this is that anyone who is outside of the US now, or travels and later attempts to reenter the US, will be subject to this EO.
- Restriction on Petition Adjudications: No petitions for individuals outside of the US will be adjudicated after the effective date unless there is proof that the $100,000 has been paid.
- Exceptions: The Secretary of Homeland Security may waive the fee for individuals, companies, or industries if doing so serves the “national interest” and does not pose a security or welfare threat. We will have to wait to see what exceptions will be made.
- Renewal: Relevant agencies are charged with deciding whether to renew this EO within 30 days of the 2026 H-1B lottery (normally happening in March).
- Additional Provisions: The EO further directs rulemaking to raise prevailing wage levels for H-1B jobs and prioritize admission of higher-skilled, higher-paid workers.
While the EO lays out broad parameters, there are significant uncertainties regarding specific individual circumstances. For now, it appears that those individuals already in the US in H-1B status may not be impacted. For those outside of the US, but who have the necessary documentation to enter the US in H-1B status, we recommend seriously considering doing so prior to the effective date listed above. In the meantime, Clark Lau will continue to monitor this matter, including what exceptions may arise.
The above has been provided for educational purposes only. Please consult your Clark Lau LLC attorney to determine how this may impact your specific situation.