A recent executive order by the Trump administration caused widespread confusion and panic among H-1B visa holders, including many Nepalis and Indians. The order, which was issued on Friday, September 19, announced a new $100,000 fee for H-1B visas. This led to immediate anxiety, as the initial wording of the order suggested it could apply to individuals already outside the U.S. who wished to return.
A Nepali man in Maryland, who held an H-1B visa, had planned to fly to Nepal to visit his family. He had already purchased his tickets and packed his bags when he learned of the executive order. Fearing he would be denied re-entry to the U.S. without paying the new fee, he canceled his trip.
Another Nepali H-1B visa holder in Europe was scheduled to fly back to the U.S. after September 21. Worried the new rule would prevent his return, he scrambled to rebook an earlier, more expensive flight to get back to the U.S. before the rule took effect.
In one dramatic case, two Nepali H-1B visa holders in California had already boarded their flight to Nepal when they heard the news. In a panic, they requested to deplane, forfeiting the money they had spent on their tickets.
New York-based Immigration Attorney Keshab Raj Seadie confirmed these were not isolated incidents and that many H-1B visa holders were similarly distressed. The uncertainty was particularly high among those who were already outside the United States or planning international travel.
The confusion was eventually cleared up on Saturday when U.S. Citizenship and Immigration Services (USCIS) and Customs and Border Protection (CBP) clarified that the executive order would only apply to H-1B visa petitions filed on or after September 21. This clarification brought relief to those who already held valid H-1B visas, ensuring their ability to travel and return to the U.S. without the new fee.
A USCIS memo clarified: “This proclamation only applies prospectively to petitions that have not yet been filed. The proclamation does not apply to aliens who are the beneficiaries of petitions that were filed prior to the effective date of the proclamation, are the beneficiaries of currently approved petitions, or are in possession of validly issued H-1B non-immigrant visas. All officers of United States Citizenship and Immigration Services shall ensure that their decisions are consistent with this guidance. The proclamation does not impact the ability of any current visa holder to travel to or from the United States.” CBP also issued a similar memo.
Further reassurance came on Sunday, September 21, 2025, when the U.S. Department of State released an official FAQ on its website, aligning with the prior guidance from USCIS and CBP. The State Department’s FAQ emphasized that the new restrictions do not affect existing H-1B visa holders’ travel rights and confirmed that consular officers would only approve visas for petitions accompanied by the $100,000 payment if filed after the effective date.
Immigration attorney Keshab Raj Seadie provided further clarification on who is affected by the new fee. “The $100,000 fee does not apply to applications submitted before September 21, 2025,” he stated. “It does not apply to renewal visas, visas that are extended or amended, or transfer visas.” He also confirmed that the fee does not apply to individuals changing their status from other visa types, such as F-1 or H-4, to H-1B while inside the U.S. “This $100,000 fee does not apply to any visas filed within the US,” he said.
However, Seadie also pointed out a more significant, long-term policy change. The proclamation has given the Department of Labor (DOL) one month to review and potentially triple the “prevailing wage” for H-1B workers. “The government will make a rule and triple the prevailing wage, which is currently seventy, eighty thousand,” he explained. “For example, if your current salary is eighty thousand, now it is possible that it will be quarter million dollars.” He warned that this change would affect all H-1B workers, including those seeking new visas, transfers, amendments, and extensions, and would be in addition to the $100,000 fee for new cases.
The new policies are expected to have a major impact on the technology sector, particularly on companies that rely heavily on H-1B workers. Indian workers, who receive the vast majority of H-1B visas, will be most affected. The policy could potentially close a major pathway for employment in the U.S.
There have been significant fluctuations in the number of H-category visas issued to Nepalis. Under the Biden administration, the number of H-category visas issued to Nepalis increased by 50% compared to the first Trump administration. In fiscal year 2024, 781 Nepalis received H-1B visas, with an additional 288 dependents receiving H-4 visas. This is a noticeable rise from previous years, such as 327 in fiscal year 2021.
The H-1B visa program, created in 1990, allows U.S. employers to hire foreign workers in specialty occupations that require at least a bachelor’s degree. There is an annual cap of 65,000 visas, plus an additional 20,000 for those with a U.S. master’s degree or higher.
In addition to the new fee, the Department of Homeland Security (DHS) has proposed a major change to the H-1B lottery system. The new rule, set to publish in the Federal Register tomorrow, would replace the current random selection process with a wage-based lottery. Applications would be prioritized based on salary level, with those in the highest-paid tier having their names entered into the lottery four times, compared to just once for the lowest-paid group.
While this change is designed to give higher-skilled, higher-paid workers a better chance, it will take several months for the federal rule-making process to be finalized. If approved, the new lottery system could begin as early as the fiscal year 2027 H-1B application season.
Kishor Panthi
View More PostsKishor Panthi is the founder and editor-in-chief of Khasokhas and NepYork. He is the author of three books, “Kampan,” "UNTRANSLATABLE" and “Zero Mile.” He writes about social issues, immigration, and politics.
