Presidential Proclamation 10998 (April 2025) created a sweeping new fee targeting large H-1B-dependent employers. Here is who pays, who is exempt, and what it means for your sponsorship.
In April 2025, the White House issued Presidential Proclamation 10998, introducing a $100,000 per-beneficiary H-1B fee targeting companies where H-1B and L-1 workers make up 50% or more of the U.S. workforce. The rule is aimed squarely at large Indian IT outsourcing firms — but its ripple effects touch every employer navigating the H-1B system. Understanding who bears this cost, and who is protected by law from paying it, is critical for both employers and workers.
Quick Answer: The new $100,000 H-1B fee applies only to H-1B-dependent employers (50%+ H-1B/L-1 workforce). Under INA Section 212(n), employers are legally prohibited from passing this fee to the employee. F-1 OPT to H-1B change-of-status applicants are fully exempt from triggering this fee for their employer.
| Company | H-1B Filings | H-1B Dependent? | $100K Fee? |
|---|---|---|---|
| Amazon | 55,150 | No | No |
| Microsoft | 34,626 | No | No |
| 33,416 | No | No | |
| Infosys | 32,840 | Yes (est.) | Yes |
| Tata Consultancy | 28,950 | Yes (est.) | Yes |
| Cognizant | 26,700 | Yes (est.) | Yes |
| Deloitte | 18,200 | No | No |
| Apple | 15,800 | No | No |
| Meta | 14,900 | No | No |
| JPMorgan | 12,400 | No | No |
Before the $100K fee, H-1B sponsorship already carried significant employer costs. The standard fee breakdown includes: the $460 base filing fee (I-129), a $500 fraud prevention and detection fee, the ACWIA training fee of $750 (1–25 employees) or $1,500 (26+ employees), and an optional $2,805 premium processing fee. For H-1B-dependent employers, each petition now adds $100,000 on top — making total sponsorship costs exceed $105,000 per worker.
The economic logic behind Proclamation 10998 is straightforward: policymakers want to discourage large-scale importation of H-1B workers for staff augmentation and consulting placements. By making the fee prohibitive for H-1B-dependent firms, the rule pushes sponsors toward direct employment models.
For mainstream tech employers like Amazon, Google, and Microsoft — where international workers constitute a much smaller percentage of total headcount — none of the new fee burden applies.
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Search H-1B Sponsors on Wisa →No. Under INA Section 212(n)(2)(C)(i), employers are explicitly prohibited from requiring H-1B workers to pay or reimburse any part of the H-1B filing fees, including the new $100,000 fee from Presidential Proclamation 10998. If your employer asks you to pay any portion — directly or through wage deductions — consult an immigration attorney immediately and may file a complaint with the DOL Wage and Hour Division.
Change-of-status petitions filed on behalf of F-1 OPT workers are exempt from triggering the $100K fee, even if the employer is otherwise H-1B-dependent. The fee specifically targets new cap-subject petitions from H-1B-dependent employers. However, verify this with an attorney as implementation guidance evolves.
An employer is H-1B-dependent if H-1B and L-1 workers together make up 50% or more of their U.S. full-time equivalent workforce. This is self-certified on the LCA and I-129 petition. You can check USCIS and DOL public disclosure data. Large IT outsourcing firms like Infosys, TCS, Cognizant, Wipro, and HCL have historically met this threshold.
Almost certainly yes for the largest H-1B-dependent consulting firms. At $100,000 per petition, these firms face a severe economic disincentive to sponsor new H-1B workers, particularly at junior wage levels. Many are expected to reduce H-1B filings significantly, shift hiring to non-cap-subject categories, or restructure to fall below the 50% threshold. Workers should expand their search to direct employers — product companies, banks, healthcare systems — that are not H-1B-dependent.