The New U.S. H-1B Visa Changes: What’s New, What It Means

What changed

• On September 19, 2025, the U.S. President signed a proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers” which imposes a one-time fee of US$100,000 on new H-1B visa petitions filed after 12:01 a.m. Eastern Daylight Time on September 21, 2025. 

• This fee applies only to new petitions for H-1B status (i.e. when a foreign national is being brought into the U.S. from outside under a new employer-sponsored H-1B). It does not apply to renewals, changes of status for those already in the U.S., or any H-1B visas issued before that threshold. 

• Besides the fee, the proclamation directs agencies (DHS, State, Labor) to take further steps: revise prevailing wage levels upward; prioritize higher-wage / high-skilled visa applicants in the lottery; coordinate to ensure implementation. FAQ

Why the change

• The official rationale is to curb abuses of the H-1B program, ensure that only the “best” or highest skilled / highest paid foreign workers are admitted under H-1B.



• Also, to protect U.S. workers, prevent companies from substituting cheaper foreign labor, especially in lower pay tiers. 

Impacts and challenges

• Cost barrier: The $100,000 fee is large. Many employers—especially smaller companies, nonprofits, startups—may find it prohibitive to sponsor foreign workers under H-1B unless the roles are high pay or otherwise justified.

• Access & competition: Since only new petitions are affected, people already on H-1B or renewing are safe. But for new foreign workers, this raises both cost and risk.

• Sectoral effects: Industries that rely heavily on H-1B foreign workers (tech, engineering, research) will feel the impact more. The change could reduce the availability of foreign hires in many mid-level or less-lucrative roles.

• Wage inflation: Since the policy also intends to raise prevailing wages and favor higher wages in the lottery, this might push up wages for roles that are sponsor-eligible. That could be positive for workers but raise employer costs.

• Legal and practical implementation issues: How the policy is applied (which employers, which occupations, how “high skilled” / “high wage” will be defined) will matter. Also, the policy is for 12 months unless extended. 

Current Australian approach & recent developments

• Skilled Migration Program: Australia has a range of visas for skilled workers to live and work, both temporary and permanent. 

• Migration Program planning levels: The Australian government regularly sets planning levels for migration including how many skilled places will be available. A high share of its migration program is dedicated to skilled migrants. 

• Priority Migration Skilled Occupation List (PMSOL): This is a list of occupations deemed critical; foreign skilled workers in these areas may get fast-track or sponsorship more easily. 

• State nomination programs: States such as Western Australia, South Australia, and others regularly run nomination streams that identify skill shortages locally, nominate candidates, and give a route to permanent residence. These programs sometimes have “priority occupations” and more flexible requirements. 

• Pathways to permanent residence: Australia provides clearer and more stable pathways to permanent residence (PR) for many skilled visa holders, especially when working in occupations in demand, or in regional areas. This predictability is a big draw. 

Why Australia may become more attractive relative to the U.S

• Lower cost / fewer financial barriers: Since the U.S. now has a very high fee for new H-1B petitions, Australia’s visa fees and requirements may be relatively cheaper and more accessible in many cases.

• Demand for skills: Australia is explicitly identifying shortages and seeking to fill them—so foreign skilled workers may have more leverage, more options in their occupations of choice.

• Stability and predictability: Australian immigration policy tends to have more consistency, especially in skilled migration. Once accepted into a nomination or priority skill stream, permanent residency is a clearer endpoint.

• Regional opportunities: Australia encourages skilled migration into regional areas with incentives, state nomination, often lower thresholds or more favorable treatment.

Implications & Strategies for Skilled Migrants

If you are someone considering working abroad (especially if you have a choice between applying in U.S. or Australia), here are some strategies and implications:

1. Evaluate total cost: Don’t just look at the visa fees. Factor in relocation, cost of living, taxes, family considerations, and how long the route to permanent residency or citizenship might take.

2. Target priority skills / occupations: If your occupation is on Australia’s PMSOL or state priority list, that can give you an advantage (faster, easier visa, nomination). Similarly, for U.S., if your position is very high wage / in high-skill sectors, you may still be competitive despite the fee.

3. Check route to PR early: In Australia, state or regional nomination might give you better odds. In the U.S., H-1B is a temporary route; understand whether your employer is willing and able to sponsor you for permanent residence, or alternative visa/residency routes.

4. Employer role: In the U.S., the employer must be willing to pay high fees and meet higher wage requirements. So securing sponsorship from a strong company is more crucial. In Australia, employer sponsorship or state nomination also matters, but the financial and regulatory burden on the employer may be less heavy in many cases.

5. Geographic flexibility: Willingness to move to regional or less dense areas (in Australia) can open up more options, potentially easier requirements, and incentives.

6. Stay updated: Immigration law changes. For example, the U.S. policy with the $100,000 fee is valid for 12 months unless extended. Understanding whether policies get renewed, modified, or countermanded is important. 

Potential Longer-Term Effects

U.S. may see a decline in the flow of foreign tech and other skilled workers at mid-wage levels, pushing more people toward countries with more welcoming skilled migration policies (Australia, Canada, certain European nations).

• Australia may become more competitive globally as talent migrates preferentially to places where it’s easier / more predictable to settle, especially as U.S. imposes cost and risk barriers.

• Increased competition for Australian skilled visa spots, especially in priority occupations. Governments may tighten criteria if demand exceeds supply.

• Employers worldwide may adapt: U.S. companies might shift hiring strategies (hire more onshore, invest in remote work, or push R&D centers abroad). Skilled workers may more strongly weigh immigration policy in choosing where to apply.

Conclusion

The new U.S. changes to the H-1B program—especially the $100,000 fee for new petitions—mark a significant shift. For many aspirants, especially in mid-tier wage roles or smaller companies, this raises both financial and risk barriers.

In contrast, Australia’s skilled migration framework looks increasingly attractive: stable, clear, often less costly, and with good pathways to permanent residence, especially for priority skills, state-nominated occupations, or regional roles.

If you have in-demand skills, it may be wise to map out options in Australia as a serious alternative (or complement) to U.S. efforts. It could save time, cost, and uncertainty—and offer a higher chance of long-term stability.

A registered migration agent can:

• Review your statement

• Suggest missing elements

• Ensure your story and evidence are aligned

Want help from a registered agent ( Sam Lotfollahi) with 16+ years of experience?

Book a consult with buttom below or email us.

Work With an Expert (Optional but Smart)

Sam Lotfollahi

How We Can Help

At Millennium Migration, we provide expert legal and strategic advice to help you navigate these upcoming changes. Whether you’re applying for skilled migration, a partner visa, or PR through the 485 stream, we’ve helped hundreds succeed—and we’re ready to help you too.

Click link below and Book a consultation now

🔗 Calendly Booking Link

Enter your email to subscribe to our newsletter.

Other Relevant Media Sources

The Australian Department of Home Affairs