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INTERVIEW ON THE PRICE OF BUSINESS SHOW, MEDIA PARTNER OF THIS SITE.

Recently Kevin Price, Host of the nationally syndicated Price of Business Show, interviewed Alexander Paykin.

The Alexander Paykin Commentaries

The H-1B visa has long been one of the most important pathways for skilled foreign workers to live and work in the United States. Established in 1990 under the Immigration Act, the H-1B visa allows U.S. employers to hire foreign nationals in specialty occupations that require highly specialized knowledge, typically in fields such as technology, engineering, medicine, and finance. To qualify for an H-1B visa, a worker must hold at least a bachelor’s degree or its equivalent in the relevant field, and the position must require this level of education or training. Traditionally, the visa has been issued for an initial period of three years, with the possibility of extending up to six years, and it can serve as a stepping stone toward permanent residency through employment-based green cards.

In recent decades, the H-1B visa program has played a crucial role in addressing skill gaps in the U.S. labor market, particularly in the technology sector, where demand for software engineers, data scientists, and other specialized professionals often outstrips domestic supply. Employers seeking to hire H-1B workers must submit petitions to U.S. Citizenship and Immigration Services (USCIS), which historically has included a standard filing fee, as well as additional fees for employer training programs and fraud prevention measures.

On September 21, 2025, the Trump administration announced a significant policy shift in the H-1B program: a new $100,000 fee for all new H-1B petitions filed on behalf of foreign nationals located outside the United States. The policy is designed to prioritize high-wage and highly skilled applicants while discouraging the use of H-1B visas for lower-wage positions. Under the new rules, the $100,000 fee applies only to new applications; renewals and extensions of existing H-1B visas are exempt. The administration has also indicated that the selection process will increasingly favor applicants with higher wage offers, effectively creating a wage-based system for visa allocation.

For employers, this change represents a substantial increase in the cost of hiring skilled foreign workers. Companies that sponsor multiple H-1B employees, especially in sectors like technology and consulting, may face significant budgetary adjustments. Smaller businesses and startups, which have traditionally relied on H-1B talent to fill critical roles, could be disproportionately affected. Human resources departments will need to revise their hiring strategies, reassess compensation packages, and potentially explore alternative visa pathways to maintain access to specialized talent.

Foreign workers are likewise impacted by the new fee. Early-career professionals, or those in lower-paying specialty positions, may find the H-1B route increasingly inaccessible. Additionally, for foreign nationals currently residing outside the United States, the policy introduces uncertainty regarding entry and re-entry; those whose employers have not paid the new fee may face travel restrictions. The abrupt announcement of this fee has caused concern and confusion, leading many applicants and employers to seek legal guidance to navigate the new requirements.

The broader implications of this policy extend beyond individual employers and workers. The H-1B visa has historically been a critical driver of innovation and economic growth in the United States. Limiting access to skilled foreign labor could have long-term effects on the competitiveness of U.S. industries, particularly technology, healthcare, and engineering sectors. At the same time, the administration maintains that the policy encourages higher-wage, high-skill employment and ensures that domestic workers are not displaced by lower-cost foreign labor.

As the first H-1B lottery under the new fee approaches, employers and foreign workers alike are watching closely. Legal experts anticipate potential challenges to the policy in federal courts, arguing that the fee may create barriers to lawful employment and violate existing immigration statutes. For now, employers must carefully plan their sponsorship strategies, and prospective H-1B applicants must ensure they understand the financial and procedural implications of the new rules.

In sum, the H-1B visa remains a critical tool for U.S. employers seeking specialized talent, but the introduction of a $100,000 fee marks a significant turning point. Both employers and foreign workers must adapt to this new landscape, balancing compliance with the law while navigating an increasingly complex immigration environment.