The 2025 H-1B Visa Shake-Up: What You Need to Know (with FAQs)

In 2025, the U.S. made some major changes to the H-1B visa program. If you or your company is involved in sponsoring, renewing, or hiring foreign professionals under H-1B, these changes matter profoundly.

Here’s a clear breakdown with sources, plus answers to the most common questions people are asking now.

Key Recent Changes to the H-1B Program

1. January 17, 2025: New “Final Rule” for H-1B / H-2
   The Department of Homeland Security (DHS) implemented a modernization rule to update how H-1B and H-2 visas function, revising criteria around specialty occupations, documentation, and oversight.
   (uscis.gov)
   
2. September 19, 2025: Presidential Proclamation & $100,000 Fee
   President Trump issued a proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers” (effective Sept 21, 2025). It mandates that new H-1B visa petitions by foreign nationals outside the U.S. must include a $100,000 supplemental fee, or the visa may be denied.
   (whitehouse.gov)
   
   • This new rule does not apply to existing H-1B holders, or petitions filed before the effective date.
     (uscis.gov)
     
   • It also does not affect renewals/extension of status for holders already in the U.S. under valid H-1B.
     (bakerdonelson.com)
     
3. Cap for 2025 Has Been Reached
   USCIS announced that the statutory cap for H-1B (65,000 regular slots + 20,000 master’s degree exemptions) has been met for fiscal year 2025.
   (uscis.gov)
   
4. Lottery & Selection Reform in Discussion
   The administration is considering ending or revamping the H-1B lottery system and moving toward a merit-based or wage-based allocation.
   (forbes.com)
   
5. New Prevailing Wage & Specialty Occupation Clarifications
   The modernization rule adjusts how “specialty occupations” are defined and gives more clarity on wage requirements and evidence.
   (hklaw.com)

People Also Ask: Questions Answered

What is the current situation of H-1B?

The H-1B program is undergoing a significant overhaul in 2025. New rules took effect Jan 17 (modernization) and the presidential proclamation (effective Sept 21) imposes a new $100,000 fee on new petitions filed from abroad. The 2025 cap has already been reached.
(uscis.gov)

What is the new rule for H-1B visa?

The most impactful new rule is the $100,000 supplemental fee requirement for new H-1B visa petitions initiating from outside the U.S. (after Sept 21, 2025). Additionally, the Jan 2025 final rule clarified definitions and processes under the program.
(whitehouse.gov)

Is there any second lottery for H-1B 2025?

No. The FY 2025 cap has already been reached, so there will be no additional lottery for 2025.
(uscis.gov)

Is the H-1B visa still available?

For new applicants filing from abroad under the new fee rule, yes — but with stricter conditions and the additional $100,000 requirement. For those already holding H-1B status or with petitions submitted before the effective date, the visa program continues without change.
(bakerdonelson.com)

How many H-1B visas will be issued in 2025?

The total number is capped: 65,000 regular + 20,000 for advanced degree holdovers. For 2025, that total has already been allocated.
(uscis.gov)

How long are H-1B processing times now?

Processing times vary, especially under the new rules where scrutiny is higher. The new final rule aims to streamline adjudications, but delays may happen due to increased requests for evidence and enforcement measures.
(uscis.gov)

Will there be a 2nd H-1B lottery in 2026?

Likely yes. The 2026 lottery will be for new fiscal year allocations, subject to the new rules and fee structure.
(forbes.com)

Will USCIS speed up in 2025?

The modernization rule intends to provide more flexible adjudication and reduce unnecessary delays, but with increased enforcement comes potential for more requests for evidence, which can slow some cases.
(americanimmigrationcouncil.org)

How long does it take to get an H-1B extension in 2025?

Extensions for existing H-1B holders (already in the U.S.) are not currently impacted by the presidential proclamation. They will follow existing processing timelines, which depend on USCIS capacity and complexity of the case.
(bakerdonelson.com)

How many times can H-1B be renewed?

H-1B status can generally be renewed in increments (usually up to six years total), unless the beneficiary is on a path toward a green card or exemption.
(en.wikipedia.org)

Can I apply for U.S. citizenship after 3 years of green card?

No. After obtaining a green card, the typical requirement is 5 years of continuous residence before applying for naturalization (or 3 years if married to a U.S. citizen).

What is the deadline for applying for an H-1B visa in 2025?

For the fiscal year 2026 cycle, USCIS typically opens registration in early March and closes later in March. For example, for FY 2026, the registration period was around March 7–24, 2025.
(callaborlaw.com)

Is USCIS still waiving interviews in 2025?

Starting September 2, 2025, the U.S. Department of State updated rules: most nonimmigrant visa applicants will require in-person interviews, with limited exceptions for certain age groups and previous visa holders.
(travel.state.gov)

What This Means for Employers & Workers

• Employers now must include the $100,000 fee (for new overseas petitions) and prepare for delays or extra scrutiny.
  
• Workers already in the U.S. on H-1B are largely shielded, their renewals, travel, and status remain valid.
  
• Prospective applicants abroad will face stricter requirements and must ensure petitioners pay the new fee and meet updated criteria.

Tips to Navigate These Changes

1. File before September 21, 2025 if possible to avoid the new fee.
2. Budget for the extra $100,000 (if your candidate is abroad).
3. Make sure your job role clearly qualifies as a “specialty occupation.”
4. Maintain impeccable documentation in case of Requests for Evidence.
5. When sending employees abroad or re-entering, check the restrictions carefully.
6. Consult immigration attorneys for compliance, these rules are evolving rapidly.

Thinking Beyond the H-1B: Why Entrepreneurs Are Choosing Dubai

With the rising cost of U.S. work visas, unpredictable lotteries, and tougher entry rules, many skilled professionals and entrepreneurs are asking a different question: Is the U.S. still the only option?

For thousands of founders, the answer has been no. Dubai and the wider UAE have become a global hub for entrepreneurs offering:

• 100% foreign ownership in Free Zones
• Fast licensing (sometimes in just 3–5 days)
• Tax benefits (0% personal income tax and incentives for many businesses)
• Strategic access to Asia, Africa, and Europe
• Visa pathways for founders, employees, and families

Unlike the H-1B, there’s no lottery, no uncertainty, and far fewer restrictions on who can start a company.

If you’re tired of waiting on visa approvals abroad, consider building your future where opportunities are open, not restricted.

For expert guidance on Business Setup in Dubai / UAE, from trade licenses to visas, contact us today.