New Rules for the H-1B Visa: What HR Leaders Must Know | Expat US

The H-1B visa has always been the main pathway for US companies to recruit highly skilled foreign professionals. But starting September 2025, the rules are changing dramatically.

‍

💼 H-1B Visa = External Hiring

• Designed for recruiting foreign professionals not yet employed by the company
• Subject to an annual cap and lottery
• Now includes a mandatory $100,000 fee for every new petition

‍

⚠️ What Changes With the New Rule?

• Hiring through the H-1B becomes a luxury only large corporations can afford
• Smaller companies will struggle to compete for international talent
• Foreign professionals will face fewer opportunities to enter the U.S. through this visa

‍

❓Can Companies Use Another Visa Instead?

Probably not in most cases. Here’s why:

‍

🔁 L-1 Visa = Internal Transfer

• For moving a manager or specialist from a foreign office to the U.S.
• Requires at least 1 year of prior employment abroad
• No cap, no lottery — but limited to multinational companies

‍

💸 E-2 Visa = Investor / Entrepreneur Route

• For nationals of treaty countries investing in a U.S. business
• Requires a “substantial investment”
• Renewable as long as the business operates

‍

🧭 In Short

• H-1B = external hiring
• L-1 = internal transfer
• E-2 = investor route

Three visas, three very different logics.

‍

🔍 Why the H-1B Still Matters

Despite the new $100,000 cost, the H-1B visa remains essential for US companies hiring skilled foreign talent. It is the only visa category that allows direct external recruitment on a large scale, making it a cornerstone of global mobility strategies.

At Expat US, we help HR teams navigate these new challenges, secure their investment, and support employees with seamless relocation services.