Hello, this is Matsui from IMS Legal Professional Corporation.
There have been two major developments related to U.S. visas in September 2025. One was the large-scale enforcement action at a Korean-owned factory in Georgia, which we covered in a previous post. The second relates to a new presidential proclamation concerning the H-1B visa. Today, I would like to discuss the latter and consider its impact.
A $100,000 Application Fee?
On September 19, a presidential proclamation titled “RESTRICTION ON ENTRY OF CERTAIN NONIMMIGRANT WORKERS” was suddenly issued. According to this proclamation, which took effect on September 21 at 12:01 a.m. (U.S. Eastern Time), H-1B visa applicants must pay an additional $100,000 USD (approximately ¥15 million) in application fees in order to be allowed entry into the United States. Failure to pay will result in the applicant being barred from entering. (Unless extended, the proclamation expires 12 months after taking effect.)
When first announced, it was unclear whether this applied only to new applications, or also to extensions, or even to current H-1B holders who were outside the U.S. temporarily. This confusion reportedly caused major disruption among U.S. tech companies employing many H-1B workers. Some companies immediately issued orders prohibiting H-1B holders from leaving the United States, while others told employees abroad to return to the U.S. immediately — which, in many cases, was physically impossible before the deadline.
There were also reports of travelers attempting to disembark flights just before takeoff, resulting in hours of delays.
The H-1B is a work visa for specialty occupations such as engineering, healthcare, and finance. While some Japanese nationals do hold this visa, roughly 70% of H-1B holders are Indian nationals. Many who happened to be in India at the time of the announcement were told to return immediately, but could not do so within the short timeframe.
Because the announcement came with almost no advance notice, and because statements from the Trump administration and USCIS were inconsistent, it was unclear for some time what information could be relied on.
Currently, USCIS’s website states that the $100,000 fee applies to new applications only — however, there is still no clear definition of what qualifies as a “new” application, so continued monitoring is required.
Changes to Selection Method and Stricter Requirements
Previously, H-1B selection was conducted via a computer-based random lottery. However, it now appears that the selection method will shift to a wage-based system, in which applicants with higher salaries have a greater chance of being selected. Additionally, occupational qualification requirements may become more stringent.
The stated reasoning behind these changes is that the H-1B program has been used to replace American workers with lower-paid foreign workers. Therefore, by raising costs and tightening eligibility criteria, the government intends to raise the threshold for H-1B applicants.
Impact on B-1 in lieu of H-1B
The B-1 in lieu of H-1B is a category allowing short-term work in the U.S. that meets H-1B-level specialty occupation criteria, while remaining under the B visa category (no U.S.-source income is allowed). The visa includes the annotation “B-1 in lieu of H”.
Because B-1 in lieu of H-1B does not require petition filing with USCIS and can be obtained solely through consular visa issuance, it has been a very convenient option, and our firm has supported many Japanese corporate clients in using this route.
Initially, we believed this proclamation would not affect B-1 in lieu of H-1B. However, following the proclamation, all B-1 in lieu of H-1B visa interviews are reportedly being placed on hold, often with applicants being told that “additional processing is required.”
Until the new H-1B standards are finalized, it is possible that B-1 in lieu of H-1B applications will continue to be suspended.
For those who must travel for work, alternative options may include:
- Industrial Worker B visa categories
- E-TDY (E-temporary duty)
- Other temporary work visa strategies
If you are in this situation, please feel free to consult us.
Looking Ahead
At the start of the Trump administration, the policy focus appeared to be on enforcing immigration laws against undocumented individuals. However, attention has now shifted toward large-scale restructuring of employment-based visa systems. Our firm will continue to monitor developments closely.
Please note that this blog reflects information available at the time of writing. For the most current information, please confirm with official government sources.
For more information, please contact us below ↓
https://imsvisa.support/en/contact/
