Among the most radical shifts in U.S. startup hiring in recent years came quietly but with a huge impact – namely, an accompanying fee of $100,000 for many new H-1B visa applications. Released through an order of former President Donald Trump in September of last year, this regulation applies to most new H-1B visa applications filed on or after September 21 of this year.  

From startups, particularly the early and mid-stage startups that tap into the best and brightest worldwide talent, the cost of sponsorship fundamentally changes the economics for hiring. What used to be a relatively manageable cost for immigration starts to rival the cost of hiring a senior engineer for six to twelve months. Otherwise, entrepreneurs and venture capitalists must necessarily change the way they hire people in 2026 and thereafter. 

This guide explains what this $100K fee really means, how it will affect recruitment strategies, and how companies can adhere, without hampering innovation.  

How Much is the $100K H1B Visa Fee, and Whom Does This Apply To?  

The new regulation also imposes a surcharge of around $100,000 for some new H-1B petitions whose beneficiaries are abroad at the time of filing. It functions as part of a larger scheme referred to as an “entry restriction” because beneficiaries will not receive approval if this payment is not made when due. 

Significantly, however, the cost is not standard.  

According to USCIS,  it usually affects new H-1B petitions filed on behalf of beneficiaries abroad. 

It may not be applicable for certain renewals, extensions, or changes of status submitted within the US depending on the specific scenarios.  

Those filed prior to September 21, 2025, could possibly be beyond its ambit.  

Since the regulation is a recent and very technical body of law, it is best for employers to consult official USCIS Frequently Asked Questions and updates on the matter. Also, founders should avoid making assumptions and assess each case individually.  

Why is this fee so shocking for start-ups? 

What may be considerations for large companies, where a six-figure price tag can be absorbed, is completely different for startups, where economics are a different ball game altogether. 

The Immediate Budget Impact 

• One-Time Payments of $100,000 

• Rivals or exceeds the annual salary of senior talent in some regions 

• Direct competitor of product development, runway, and growth spend 

• Requires difficult decisions between employment and survival 

Startups that were in the early phase of development and budgeted for minimal costs associated with immigration are now faced with an obstacle that cannot qualify for consideration under the ‘operational overhead’ factor.  

A Widening Competitive Gap  

There might also be sponsorship issues because larger tech companies will still sponsor selectively while startups might be priced entirely. This poses the risk that: 

• Attracting and retaining top global talent in well-funded companies. 

• Impact on Reducing Startup Diversity and Innovation. 

• Rising need for alternative recruitment models 

Thus, discernment becomes a function of replacing default sponsorship instead of replacing sponsorship itself. 

Will Startups Ever Hire Foreign Talent Completely?  

No, though just how hiring will change is going to shock you.  

Global talent continues to be essential in the area of innovation, in particular for engineers, AI professionals, data scientists, and dedicated information technology personnel. The difference is in the route that leads to engaging with that talent.  

Rather, startups have shifted to other alternatives, which includes avoiding the $100K fee entirely: 

• Remove immigration uncertainty 

• Enabling faster onboarding 

Which Models of Hiring Startups Are Adopting Instead?  

1. Remote-First Hiring 
   If it’s a position that doesn’t need to be physically based inside the U.S., then working remotely negates any need for a visa. It provides the following benefits to startups: 

• Access Global Talent without Immigration Friction 

• Control day-to-day operations 

• Build teams scalable and at lower costs  

Regions such as Latin America, Eastern Europe, South Asia, and the Southeast Asia region are now the focus for the hiring needs of start-ups.  

2. Employer of Record (EOR) & Global PEO Models

Employer of Record solutions provide a means for startups to hire employees from their home country without opening entities abroad or sponsoring U.S. visas. By using an EOR, startups and entrepreneurs can- 

• Recruit Global Talent Compliantly 

• Unload payroll, tax, and labor law requirements 

• No fees required for visas and incorporation 

• Test new markets with low risk 

This model is particularly beneficial for: 

• Pilot teams 

• Time-sensitive hires 

• Distributed engineering teams 

3. Selecting Candidates Already in the US

Certain foreign candidates m

ay still qualify under other visas, including: 

• F-1 OPT 

• L-1 intra-company transfers 

• Existing H-1B transfers 

However, such scenarios require maximum care because sometimes inappropriate actions may attract compliance and/or additional charges.  

What Changes Are Expected in Startup Recruitment Approaches by 2026?  

This fee not only has budget implications but it’s also going to alter the approach to recruitment. 

Talent teams are currently: 

• Developing sourcing pipelines globally at an early stage 

• Collaborations with International Recruiters 

• Roles that can work efficiently remotely 

• Establishing EORs as a Strategic Asset 

EORs are no longer a “band-aid solution to a broken problem.” They are turning into integral hiring solutions.   

Startups are utilizing EORs for: 

• Explore new regions rapidly 

• Minimize recruitment delays 

• Remain Compliant Across Jurisdictions 

Their speed without long-term commitments has made the EORs very attractive.  

Rethinking Compensation and Team Design  

The distributed workforce needs a new approach to compensation- 

• Market-compatible local wages 

• The Role of Equity in the World Market 

• Well-defined performance and growth metrics  

It also enables start-ups to competitively operate in the market without increasing costs to unsustainable levels. 

What Legal and Compliance Steps Should Founders Take Now?  

Examine All Pending and Planned Petitions. Confirm: 

• Filing dates from September 21, 2025 

• Beneficiary location at the time of filing 

• Whether exemptions can apply 

• Timing errors may result in additional charges. 

• Involve Immigration Counsels Early  

These new regulations include the following: 

• Technical exceptions 

• Gray areas to be clarified 

• Legal interpretation is necessary in order to avoid costly mistakes. 

Vet EOR and Payroll Partners Carefully  

Choose partners based on:  

• Record of compliance 

• Data security practices 

• Pricing transparency 

• Jurisdictional coverage 

 A weaker partner may bring new dangers rather than diminishing ones.  

How Do the 2025-2026 H-1B Rule Changes Compound the Issue?  

Indeed, the $100K fee must be considered in the context of other H-1B reform measures that increase the hurdle rate across the board.  

USCIS also introduced “enhanced scrutiny,” which- 

• Made the Form I-129 Rules stricter 

• Enhanced oversight instruments 

• More paperwork regarding specific job candidates 

These imply: 

• More Requests for Evidence (RFEs) 

• Extended adjudication periods 

• More costly legal education 

• Enhancing the ‘Specialty Occupation’  

USCIS is enforcing “closer alignment” with respect to- 

• Job responsibilities 

• Required Degree 

• Candidate’s Educational Background  

Even the slightest discrepancy may result in delays or rejections. Vague role descriptions are no longer acceptable for start-ups.  

Weighted Selection and Wage Preference  

Emerging recommendations are that selection will prefer increasingly:  

• Higher wage positions 

• Mastery skill demands  

• Lower-paying jobs may encounter lower odds, adding to the disadvantage of startups. 

Caps, Decline of Registration, & Competition  

Demand still outstrips supply. As reported by the American Immigration Council, the number of H-1B visas is filled early each year, and registrations for H-1Bs are down substantially from FY2025 to FY2026.  

It appears that companies are being more cautious about employing-  

• New ways of recruiting staff are already underway 
• Speed and accuracy have become major deciding factors 

What Should IT Recruiter and Startup Hiring Teams Do Differently?  

Change the Default Hiring Model  

Visa sponsorship should be  

• Effective, strategic and not routine 

• For mission-critical applications running locally 

• Based on long-term business values. 

• Focus on High Impact and High Skills Jobs 

If sponsorship is required:  

• Make sure that your pay and skill levels are competitive. 

• They have airtight document preparation.  

• They show ability to Pay and legitimacy of business. 

Enhance Role Documentation  

Clear documentation reduces RFEs: 

• Job descriptions 

• Degree Requirements  

• Business justification  

• Reporting structures 

Now, recruiting with compliance at the forefront cuts recruiting time and expense. 

Educate Stakeholders Early  

It is necessary that founders, candidates, and investors are aware of-  

• The New Cost Realities  

• Available alternatives 

• Risks and tradeoffs 

 Transparency promotes trust, helping to prevent last-minute surprises.  

Should Startups Wait for Policy Changes or Act Now?  

Policy change may occur. Legal actions, political agendas, or future exemptions are a possibility. However, product roadmaps and recruitment schedules cannot be postponed.  

The smartest course of action is hybrid: 

• Utilize EORs and telecommunting for speed and flexibility 

• Use H-1B visas only for exceptional instances 

 Track changes in monitoring policies without halting the implementation process Startups that adjust to these new developments would progress at a quicker pace than those that wait for the certainty that comes later  

Final Thoughts 

Previously, the $100K H-1B visa fee was a strong message: visa-first hiring is no longer a given. For startups, this is a time for reality-checking, adapting, and improving global talent strategy.  

Recruitment trends are not limited by boundaries but are instead defined by design.