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      On September 19, 2025, U.S. President Donald J. Trump issued a “Presidential Proclamation” (henceforward, “the proclamation”) restricting the entry of certain H-1B nonimmigrants into the U.S. and requiring U.S. employers to pay a $100,000 fee for each H-1B worker seeking entry from outside the country.1  The proclamation, titled “Restriction on Entry of Certain Nonimmigrant Workers,” took effect at 12:01 a.m. EDT on September 21, 2025, and is set to expire after one year, with possible renewals thereafter.

      In the subsequent days, U.S. Citizenship and Immigration Services (USCIS)2, U.S. Customs and Border Protection (CBP)3, and the U.S. Department of State (DOS)4 published guidance regarding the implementation of the proclamation.  While many open questions remain, this GMS Flash Alert speaks to the key takeaways from the proclamation and the subsequent governmental guidance; it also summarizes the available information to-date. 

      WHY THIS MATTERS

      The new proclamation brings significant changes to the H-1B program, with major financial and operational implications for employers that have a large H-1B workforce and those that regularly sponsor new H-1B petitions through the annual H-1B Cap lottery. With guidance relating to the proclamation still evolving and many implementation questions unanswered, it is essential for employers to stay informed and plan proactively.

      Employers are advised to work in close collaboration with immigration counsel to identify potentially affected employees and develop alternative immigration strategies, which will help minimize business disruption and foster ongoing compliance as new details emerge.

      What Does the New Presidential Proclamation Entail?

      The proclamation, which took effect at 12:01 a.m. EDT on September 21, 2025, imposes new restrictions on the entry of H-1B workers into the United States.  It applies only to H-1B workers attempting to enter the

      U.S. after the effective date and does not apply retroactively to those who already hold valid H-1B visas or whose petitions were filed before the proclamation took effect.  Additionally, USCIS will not adjudicate new H-1B petitions unless they are accompanied by a $100,000 fee for workers currently outside the U.S. This fee is stipulated to be a one-time requirement and does not affect renewals.  The proclamation is set to expire in 12 months, although it may be extended.  (For prior coverage of the 2024 visa fee increases, see GMS Flash Alert 2024-040, February 21, 2024.)

      The proclamation also mandates that within 30 days of the next H-1B lottery in March 2026, key federal officials must jointly submit a recommendation to the president regarding whether the restriction should be renewed or extended.  Furthermore, the secretary of state is directed to issue guidance to prevent misuse of B visas by H-1B beneficiaries with start dates prior to October 1, 2026.  The secretary of labor is also tasked with initiating rulemaking to revise prevailing wage levels and prioritize admission of high-skilled and high-paid nonimmigrants.

      How Will the Proclamation Be Implemented?

      Federal agencies have subsequently provided clarifying guidance on how the proclamation will be implemented.  USCIS and CBP have stated that the proclamation does not apply to individuals who are beneficiaries of H-1B petitions filed before September 21, 2025, those with currently approved petitions, and those holding validly issued H-1B visas.5  They emphasized that the proclamation also does not affect the ability of current H-1B visa holders to enter or exit the United States.

      USCIS and CBP also clarified that the proclamation only applies to H-1B petitions filed after the effective date. Petitions filed before September 21, 2025, even if still pending, are exempt from the new restriction.  Additionally, the DOS echoed this position, confirming that the restriction applies only to visa issuance or entry based on H-1B petitions filed after the effective date.6  DOS also confirmed that no visas have been revoked as a result of the proclamation.

      The DOS H-1B FAQ, which aligns with USCIS guidance, further clarifies that the proclamation does not apply to previously-issued H-1B visas or petitions submitted before the effective date.7  It does not change any fees associated with H-1B renewals, and does not prevent current H-1B visa holders from traveling in and out of the United States.

      Are There Any Exceptions to the Proclamation?

      Yes, the proclamation includes specific exceptions.  Individuals may be exempt if the Department of Homeland Security (DHS) determines, on a case-by-case basis, that their entry is in the national interest and does not pose a threat to U.S. security or welfare.  This exemption can apply to individual applicants, employees of specific companies, or workers in certain industries.  According to media reports, the White House has indicated that H-1B petitions for doctors might be exempt from the new restriction, although there is no official confirmation on this as of today.8  Additionally, the DOS has indicated that further reforms related to the proclamation will be announced in the coming months.9

      How Does the Proclamation Affect H-4 Dependents of H-1B Workers?

      H-4 dependents are allowed to enter or re-enter the United States in H-4 status, provided that the H-1B beneficiary to whom their status is tied remains eligible to enter or re-enter under the new guidance.  For H-4 dependents of H-1B workers whose petitions were filed before September 21, 2025, attending visa appointments at U.S. consular posts should also proceed as usual.  

      KPMG LAW LLP INSIGHTS

      Outstanding Implementation Questions

      Despite initial guidance from federal agencies, there are still several unresolved questions regarding how the proclamation will be implemented for H-1B nonimmigrants.  One major area of uncertainty is whether visas will be issued for changes of employer, amended petitions, cap-exempt petitions, or for H-1B1 petitions filed after the effective date if the $100,000 fee is not paid.  It is unclear whether extensions of stay, changes of employer or amended petitions for those already in lawful H-1B status, or change of status applications filed after the effective date, will be adjudicated without payment of the new fee.

      Another open question is whether cap-exempt employers, such as universities and nonprofit research institutions, will be subject to the entry ban and the fee requirement, especially given references to the H-1B lottery in the proclamation.  There is also ambiguity around the practical aspects of fee payment, including how and where the $100,000 fee should be paid, and what documentation or proof of payment will be required at the border or during visa processing.

      Legal Developments and Next Steps

      Legal challenges to the proclamation are anticipated, including efforts to obtain an emergency injunction to halt its implementation.  As litigation unfolds, the way the proclamation is enforced could change rapidly. KPMG Law LLP is actively monitoring all developments related to the proclamation and will continue to provide updates as the situation evolves.

      The situation is rather fluid at this time, with a degree of “unknowns.”  Affected parties should continue to monitor developments tied to the proclamation and consult with their qualified immigration advisers or with a member of the immigration team at KPMG Law LLP in Canada (see the Contacts section).

      FOOTNOTES:

      1  The White House, Proclamation, September 19, 2025, “Restriction on Entry of Certain Nonimmigrant Workers.”  See also, The White House, “Fact Sheet: President Donald J. Trump Suspends the Entry of Certain Alien Nonimmigrant Workers.”

      2  USCIS, September 20, 2025, “Memorandum – Proclamation, Restriction on Entry of Certain Nonimmigrant Workers, H-1B.”  See also, USCIS, “H-1B FAQ” (Release Date: 09/21/2025).

      3  On the evening of September 20, 2025, CBP tweeted publicly an internal memorandum addressing the implementation of the H-1B proclamation.  The tweet can be found here.  By clicking on this link, you are leaving the KPMG website for an external site (non-KPMG, non-governmental), that KPMG is not affiliated with nor does KPMG endorse its content.  The use of the external site and its content may be subject to the terms of use and/or privacy policies of its owner or operator.

      4  DOS, “H-1B FAQ” (September 21, 2025).  See also, DOS, September 21, 2025, “U.S. Visa News Alert – Restriction on Entry of Certain Nonimmigrant Workers.”

      5  Supra notes 2 and 3.

      6  Supra note 4.

      7 Supra note 4.

      8  See e.g., Bloomberg Law News, September 22, 2025, “White House Says Doctors May Win Reprieve From H-1B Visa Fee (3).” By clicking on this link, you are leaving the KPMG website for an external site (non-KPMG, non-governmental), that KPMG is not affiliated with nor does KPMG endorse its content.  The use of the external site and its content may be subject to the terms of use and/or privacy policies of its owner or operator.

      9  Supra note 4. 

      Contacts

      Elizabeth Nanton
      Elizabeth Nanton

      Partner and U.S. Immigration Practice Leader, KPMG Law LLP

      KPMG in Canada

      sylvia-yong
      Sylvia Yong

      Associate Attorney, U.S. Immigration

      KPMG in Canada

      More Information

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      * Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.

      The information contained in this newsletter was submitted by the KPMG International member firm in Canada.

      GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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