The $100,000 H-1B fee: rethinking where tech work happens
Bringing specialist talent to the US just got far more expensive. Many companies will respond by building or partnering with teams where the talent already lives.
By the Xuru Technologies team · 22 September 2025
Key takeaways
- A proclamation signed on 19 September 2025 requires a US$100,000 payment for certain new H-1B petitions.
- US agencies clarified it applies to new petitions filed from 21 September 2025, not to existing visa holders or renewals.
- The cost makes sponsoring overseas specialists much more expensive, especially for smaller firms.
- Remote and offshore delivery models become more attractive for many projects.
For small and mid-sized US companies, sponsoring a visa was already expensive and slow. At this price, many will look at other ways to access the same skills.
What happened
Barnes & Thornburg and Hunton summarised the proclamation and the agencies' clarifications about its scope.
What it means for US businesses
- Local hiring remains the first option where talent exists.
- Remote teams abroad can deliver many software, design and data roles.
- Project-based outsourcing avoids fixed hiring costs for defined work.
- Time zones and communication need deliberate planning.
Choosing the right model
| Need | Model |
|---|---|
| Core product leadership | Local hire |
| Defined website or app project | Fixed-scope outsourcing |
| Ongoing development capacity | Dedicated remote team |
| Agency overflow | White-label partner |
Compare onshore, nearshore and offshore options.
Frequently asked questions
Does the fee apply to current H-1B holders?
Agencies said it applies to new petitions filed after the effective date, not to existing visa holders or extensions. Seek immigration advice for specific cases.
Is offshore delivery as good as onshore?
With clear scope, overlap hours and accountable partners, offshore teams deliver high-quality work for many projects.
How do we manage time zones?
Agree overlap hours, use written updates and preview links, and have one point of contact.
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