Trump’s H-1B Entry Restriction Extension: An Overview
President Trump signed a new proclamation on September 18, 2026. It extends H-1B entry restrictions for an additional 12 months, through September 21, 2027. The proclamation renews the core requirement established by Proclamation 10973 in September 2025. H-1B workers outside the United States cannot enter the country unless their sponsoring employer has paid $100,000. This payment is part of the petition process. For employers, HR teams, and foreign nationals currently navigating H-1B sponsorship, this H-1B entry restriction extension is a critical development. It directly affects hiring timelines, petition strategies, and workforce planning well into next year.
The Original 2025 Proclamation
Proclamation 10973, issued on September 19, 2025, introduced what was at the time an unprecedented condition on H-1B entry. It attached a $100,000 payment requirement to petitions for workers located outside the United States. The stated rationale was to curb what the administration characterized as systematic exploitation of the H-1B program. It pointed particularly to IT staffing and outsourcing companies. It argued these firms had used the program to replace American workers with lower-cost foreign labor. This, it said, happened rather than to fill genuine gaps in specialized talent.
That original proclamation also directed the Department of Homeland Security and the Department of Labor to initiate separate rulemakings. These were meant to address broader structural concerns with the program. Those processes have since advanced. DHS finalized a weighted lottery selection rule in December 2025, and DOL published a proposed wage rule in March 2026. The current extension therefore builds on a regulatory environment that has already shifted. It looks meaningfully different from where it stood two years ago.
The H-1B Entry Restriction Extension Through September 2027
The September 18, 2026 proclamation formally extends the restriction on entry for certain H-1B nonimmigrant workers until 12:01 a.m. Eastern Daylight Time on September 21, 2027. The restriction keeps the same substantive terms that the administration established in 2025. An H-1B worker outside the United States may not enter. DHS must withhold decision-making on such petitions. The filing employer must make a $100,000 payment and retain documentation of that payment prior to filing.
A national interest exception remains available. The Secretary of Homeland Security retains discretionary authority to exempt individual workers, entire companies, or industry-wide categories from the restriction. This applies if the Secretary determines the hiring is in the national interest. It must also not pose a threat to U.S. security or welfare. The proclamation does not change the mechanics of that exception or set any new criteria for invoking it.
The administration bases its H-1B entry restriction extension on a claim: the underlying conditions it aimed to address still persist. This is despite the original proclamation having produced measurable changes in H-1B filing patterns. Graduate unemployment stood at 5.7 percent as of June 2026, down only marginally from 5.8 percent in September 2025. Underemployment for recent graduates rose slightly, from 41.8 to 42 percent over the same period. The DOL wage rule remains in proposed form, and officials have not yet finalized it.
Who Is Affected: Employers, Foreign Nationals, and Staffing Firms
The restriction directly affects H-1B workers who currently remain outside the United States. It applies to those who need to enter or re-enter the country. They must be beginning or continuing employment under an approved or pending petition. This includes workers seeking initial admission on a new H-1B visa. It also includes workers returning from abroad who require a new visa stamp. It further includes anyone whose petition a consulate processes rather than an extension of status within the U.S.
Employers bear the compliance obligation. The proclamation requires that sponsoring employers obtain and retain documentation of the $100,000 payment before filing. It also directs the State Department to verify that payment before approving any H-1B visa application. IT staffing and outsourcing firms are the category the proclamation most directly targets. The text specifically cites a 92 percent drop in H-1B registrations from the largest firms in that sector. Registrations fell from 24,946 to 2,055 between the FY 2025 and FY 2027 cap seasons.
H-1B workers already inside the United States who are extending status without departing face a different situation. They are not directly subject to the entry restriction. This is because the restriction applies to those seeking admission after the proclamation’s effective date. However, any international travel creates re-entry exposure under these terms.
Practical Implications: Cost, Strategy, and Consular Exposure
For employers who genuinely need to bring a highly skilled H-1B worker into the United States, the $100,000 payment is now a fixture. It is a permanent part of the cost structure. It is not an anomaly. Workforce planning for FY 2027 and beyond must account for this as a baseline expense. It applies to any international hire who needs to enter from abroad. This comes in addition to filing fees, attorney fees, and the wage obligations the DHS weighted lottery already incentivizes.
The proclamation cites the consular processing decline. Consular processing requests fell nearly 97 percent from FY 2025 to FY 2027. This signals that many employers have already restructured how they bring workers in or have reduced overseas hiring substantially. For those still sponsoring international hires, documenting the $100,000 payment before filing is a hard compliance requirement. It is not an administrative formality. Failures in documentation could result in denial of the visa application at the consulate level.
Workers already in the U.S. in valid H-1B status should consult with immigration counsel before any international travel. Departure and re-entry triggers the entry restriction and payment verification requirements. Cap-exempt employers and workers may benefit from strategic options not available under the cap-subject process. However, the proclamation does not create new exemptions for that category specifically.
The DOL proposed wage rule, published in March 2026, remains pending finalization. If finalized as proposed, it would raise prevailing wage floors. This would more closely align H-1B wages with those of comparable U.S. workers. This would add another layer of cost pressure on employers already contending with the $100,000 payment requirement. Employers should monitor that rulemaking carefully. The final rule could require adjustments to existing labor condition applications and wage structures.
What to Watch For Next
The proclamation requires several officials to act jointly: the Secretaries of State, Labor, and Homeland Security, along with the Attorney General. They must submit a recommendation to the President. This must occur within 30 days of the completion of the next H-1B lottery. It must address whether to extend or renew the restriction further. Stakeholders should monitor that post-lottery window, anticipated following the FY 2028 registration period. It may offer signals about whether another extension is likely. The DOL wage rulemaking is also an active proceeding. Further guidance, a comment period response, or a final rule could emerge in the months ahead. Any of these could substantially affect program economics.
How Immigration Professional Association Can Help
At Immigration Professional Association, our team has guided employers and foreign national workers through the H-1B landscape. Our involvement dates back to before authorities first introduced these restrictions in 2025. We understand the compliance obligations the $100,000 payment requirement creates, along with the documentation employers must maintain. Our team also understands the strategic decisions that matter here. Choices around international travel and consular re-entry, in particular, can expose workers and their sponsors to avoidable risk.
If your company sponsors H-1B workers who travel internationally, now is the right time to act. The same is true if you are planning new international hires for roles that require H-1B classification. Review your petition and travel strategy against the terms of this extension. We also work with employers navigating the national interest exception process. We help those assessing whether cap-exempt pathways offer meaningful alternatives under current conditions.
Contact Immigration Professional Association to speak with our team. We can discuss what the H-1B entry restriction extension means for your specific workforce and hiring plans. Reach out before your next petition, your next international trip, or your next cap season registration.
