On September 19, 2025, the White House announced a new $100,000 fee on every new H-1B visa petition.

And no, this is not an annual tax but a one-time surcharge, stacked on top of already steep relocation costs, salaries, and legal fees. And while it doesn’t affect renewals or existing H-1B holders, it dramatically changes the game for any U.S. company planning to sponsor new foreign talent.

The rationale from policymakers is clear: discourage companies from hiring foreign workers in the U.S. unless those workers are at the very top of their field or command very high salaries. 

The message is simple: hire Americans first, and if you must bring in global talent, you’ll pay for it.

But for U.S. companies in tech, finance, and consulting (industries where talent gaps are already huge), this new reality creates serious questions:

• How do you fill critical roles without blowing up your hiring budget?
• What happens to startups and mid-sized firms that can’t absorb $100K surcharges?
• If you can’t sponsor new H-1Bs, where do you turn for specialized engineers?
  
  

Luckily, though, the answer is already here.

Why the $100K H-1B Fee Matters

To understand the impact, let’s break down what this really means for employers.

1. Cost Inflation

Until now, sponsoring an H-1B visa typically costs around $5,000–$10,000 in legal and processing fees, plus relocation support. That was manageable, especially for larger companies.

Adding a $100,000 fee changes the math overnight. Suddenly, an entry-level or mid-level foreign hire could cost as much as $250,000 in year one, once you combine the fee, salary, relocation, and overhead.

2. Talent Access Shrinks

Most employers will stop sponsoring H-1Bs for junior or mid-level roles. The $100K surcharge ensures that only very specialized, very high-paid hires will make financial sense.

That leaves a huge gap: software engineers, QA testers, DevOps, and data analysts. Roles that are essential for daily product delivery but may not justify a $100K upfront cost.

3. Timelines Stretch Out

The H-1B process was already slow: 6–9 months of lottery applications, legal back-and-forth, and relocation logistics. Now, the added fee and uncertainty will cause many companies to pause or cancel sponsorships altogether.

4. Risk Rises

The biggest concern is volatility. Immigration rules change with political cycles. Companies can’t afford to build their hiring strategy around policies that swing from one year to the next.

The Cheatcode: Nearshore Hiring

Here’s where the workaround comes in. Instead of fighting through the H-1B process, U.S. companies can tap into global talent pools without the visa overhead.

Nearshore hiring, particularly in LATAM, has emerged as the most viable alternative.

And speed becomes less of a problem with a refined process that guarantees a top match for the role you are trying to fill.

Cost Comparison: H-1B vs. Nearshore

Real World Impact

Many U.S. companies have already moved away from dependency on this visa because they know that with the cost of one H-1B hire, you can build an entire senior engineering team in LATAM

They’ve embraced nearshore hiring models to:

• Fill urgent roles faster without waiting for visa lotteries.
• Reduce budget strain while still hiring senior, specialized talent.
• Protect against policy swings, building stability into their workforce strategy.

U.S. companies don’t need to accept six-figure surcharges as the new normal. Access to global talent is still possible, and in many cases, it’s even better than before.

Nearshore hiring in LATAM is the cheat code:

• Same quality engineers.

• Real-time collaboration.

• Predictable costs.

• Zero visa risk.

The H-1B may have changed, but the way forward is clear.