US President Donald Trump has extended for another year a restriction requiring a $100,000 payment for certain H-1B workers seeking entry into the United States. The measure will continue until September 21, 2027.
The extension is particularly relevant to Indian professionals because India accounted for 71% of beneficiaries of approved H-1B petitions in fiscal 2024, according to US Citizenship and Immigration Services data.
Alongside the extension, Trump signed a separate executive order strengthening interagency scrutiny of the H-1B programme, including consideration of whether an employer has recently laid off, or plans to lay off, similarly situated US workers.
Who Has to Pay $100,000?
The restriction applies to certain H-1B workers who are outside the United States and need to enter the country to take up employment under an approved petition.
The proclamation requires covered petitions to be accompanied or supplemented by a $100,000 payment. Employers must retain documentation showing that the payment has been made.
The proclamation also allows national-interest exceptions at the discretion of the Secretary of Homeland Security.
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Why Was the Rule Extended?
The Trump administration says the measure is intended to address what it describes as misuse of the H-1B programme and protect US workers.
According to a White House fact sheet, registrations filed by the largest IT outsourcing firms fell 92% after the measures introduced in 2025. These figures and the administration’s claims about the programme represent the White House’s assessment of the policy’s impact.
The administration says the underlying conditions that led to the original restriction continue to exist and therefore justified extending it for another 12 months.
Why Does It Matter for Indians?
Indian professionals make up the largest group of H-1B beneficiaries.
USCIS data show that 71% of approved H-1B petitions in fiscal 2024 were for beneficiaries born in India. China was a distant second at about 12%.
This means employers seeking to bring covered Indian professionals into the US from abroad could be significantly exposed to the $100,000 payment requirement.
What Is Changing for Employers?
A separate executive order signed on September 18 introduces greater coordination among US agencies administering the H-1B programme.
The State Department, Department of Labor and Department of Homeland Security have been directed to consider an employer’s recent or planned layoffs of similarly situated American workers when examining H-1B applications.
The agencies will also receive additional information concerning wages, industry conditions and employment specialisation from other parts of the US government.
What Does the White House Say About H-1B Hiring?
The administration argues that certain employers, staffing groups and outsourcing firms have used the H-1B programme to replace American workers with lower-paid foreign labour.
Those are the administration’s stated reasons for tightening the programme. The White House says its policies are intended to shift H-1B hiring towards higher-skilled and higher-paid workers.
What Happens Next?
The renewed restriction takes effect on September 21, 2026, and is scheduled to remain in place for another 12 months.
The proclamation also requires senior officials to make a recommendation after the next H-1B lottery on whether another extension or renewal would be in the interests of the United States.
The420 Takeaway: Indian Applicants Need to Check Who Is Covered
The $100,000 requirement does not simply apply to every H-1B holder in the same way. Indian professionals and employers should check whether a particular petition and entry situation falls within the restriction, especially when the worker is outside the United States and seeking admission under a new H-1B petition.
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