Trump’s H-1B Visa Changes (September 2025)
On September 19, 2025, President Trump signed a proclamation requiring employers to pay a $100,000 fee for each new H-1B visa application. This represents one of the most dramatic changes to the program in its history.
Key Changes:
The new fee applies to all new H-1B petitions, including those for nonprofits and universities. The administration is also directing rulemaking to revise prevailing wage levels and prioritize high-skilled, high-paid workers in the selection process.
The restrictions took effect on September 21, 2025, creating immediate uncertainty for companies and prospective workers. The White House clarified the fee only applies to new applicants, not renewals.
Administration’s Rationale:
The White House argues that American workers are being replaced with lower-paid foreign labor, noting that the share of IT workers with H-1B visas has risen from 32% in 2003 to over 65% in recent years. The proclamation cites examples of major companies approved for thousands of H-1B workers while simultaneously laying off thousands of American employees.
Canada’s Response: Targeting H-1B “Rejects”
Canada has moved quickly to capitalize on the uncertainty created by these changes.
Canada’s Strategy:
In late September 2025, speaking to reporters in London, PM Carney stated: “What is clear is the opportunity to attract people who previously would have got so-called H-1B visas – and I’m going to simplify one of the big cohorts is in the tech sector”. He described these workers as people with “lots of skills, enterprising, and willing to move to work,” and confirmed Canada will “have a clear offering” for this talent pool.
Carney emphasized that Canada is positioning itself as a global hub for talent in artificial intelligence, quantum computing, clean tech, and advanced engineering.
The Immigration Perspective:
At Canadian Law Group, we see the H-1B fee as an opportunity for Canada. When the U.S. closes the door on global talent, Canada stands to take advantage of the fallback. There are thousands of foreign students graduating from U.S. universities who already face rejection from the H-1B lottery system and are forced to look elsewhere. Our Firm is receiving many calls from current and potential H1B visa holders in the USA.
From the corporate angle, companies in the U.S. will now have to change their hiring models and consider new ways to bring in talent to the country. Again, Canadian employers face a genuine opportunity if they seek qualified talent, already on U.S. soil (or not) who were considering H1Bs and are now out of luck in the USA.
Existing Programs:
In 2023, Canada launched a temporary one-year work permit program specifically for H-1B holders after mass tech layoffs hit the U.S., which reached its 10,000-applicant cap within 48 hours. Canada’s Tech Talent Strategy is highly unusual for its explicit targeting of visa holders in another country.
Why This Matters:
Approximately 60% of H-1B holders approved since 2012 have held computer-related jobs, making them particularly attractive to Canada’s growing tech sector. Major Canadian tech hubs in Toronto, Vancouver, Montreal, Calgary, and Halifax are actively recruiting international talent.
Smaller and medium-sized U.S. businesses that can’t afford the $100,000 fee might instead open offices in Canada, keeping workers in North American time zones while facing less expense and paperwork.
The Trump administration’s changes could redirect a significant flow of high-skilled tech talent northward, potentially benefiting Canada’s innovation economy while making U.S. companies face higher costs for foreign expertise.
