The U.S. Just Made H-1B Hiring $100,000 Harder – Here’s How Canada Can Benefit

In this article, we’ll break down what the H-1B program is, what the proclamation says, and why it matters. No, we’re not U.S. immigration experts – but we do know Canadian immigration. So, we’re going to focus on how this development could create opportunities for Canadian employers and workers at a time when programs like Canada’s Temporary Foreign Worker Program (including the Global Talent Stream) are under scrutiny, and STEM-focused Express Entry draws are nowhere to be seen in 2025.

Key Takeaways

• New $100,000 H-1B Fee: As of September 21, 2025, U.S. employers filing new H-1B petitions for workers outside the U.S. must pay a one-time $100,000 fee, with the policy set to last 12 months unless extended.

• Clarifications Narrow Scope: The fee applies only to new petitions, not renewals or existing H-1B holders already in the U.S., and includes a national interest exemption for critical hires.

• Ripple Effects on Global Talent: The steep fee may prompt U.S. employers to scale back hiring abroad, shift toward Canadian locations, or consider remote roles — opening doors for Canada to attract top talent.

• Canada’s Opportunity: Programs like Inter-Company Transfers, the Global Talent Stream, Express Entry (STEM draws), and Provincial Nominee Programs could make Canada a key destination for skilled workers deterred by U.S. immigration barriers.

• But Canada Faces Its Own Scrutiny: The Temporary Foreign Worker Program is under review for similar wage and worker-protection concerns.

What is the H-1B Visa Program? 

Although not a perfect comparison, the H-1B visa in the United States serves a similar purpose to Canada’s Temporary Foreign Worker Program (TFWP). The H-1B allows U.S. employers to hire highly skilled foreign workers for specialty occupations — typically roles requiring at least a bachelor’s degree in fields like engineering, IT, finance, and healthcare. 

Key facts about the H-1B system: 

• Annual Cap: 65,000 visas are available under the “regular” cap each year for workers with at least a bachelor’s degree. 

• Master’s Cap: An additional 20,000 visas are reserved for applicants with a U.S. master’s degree or higher. 

• Lottery System: Demand far exceeds supply, so H-1B visas are allocated through a lottery. In 2025, the lottery for positions with employment start dates on or after October 1, 2025, was held in March. Employers selected in the lottery then had to submit full petitions to U.S. Citizenship and Immigration Services (USCIS) in the spring, with the annual cap ultimately reached by July 18, 2025. 

What the September 19 Proclamation Said 

The proclamation introduced a US$100,000 fee for new H-1B petitions for workers outside the U.S. Effective September 21, 2025, it means any employer wanting to bring in foreign talent from abroad under H-1B must pay this fee before the worker can enter the U.S. The measure is set to remain in place for 12 months unless extended by the administration.  

Clarifications on September 20 narrowed its scope: 

• It applies only to new petitions, not extensions or renewals, or petitions submitted prior to September 21st. 
• Existing H-1B holders already in the U.S. are not affected. 
• It is a one-time fee, not recurring annually. 
• A national interest exemption exists for petitions deemed critical to the U.S. economy or security. 

The language of the proclamation and administration comments suggests the policy heavily targets the IT sector, historically the largest user of H-1B visas, and aims to curb perceived abuses of the program, where critics argue some employers rely too heavily on foreign workers for certain roles, driving down wages and reducing opportunities for American workers. 

Other planned changes to the H-1B visa include revising prevailing wage levels and prioritizing higher-paid, higher-skilled applications, signaling a broader shift in U.S. immigration policy. 

Reminder: We are not U.S. immigration experts and cannot provide advice on these measures. If you are affected, consult a qualified U.S. immigration representative for guidance. 

Why Canada Should Pay Attention 

Here’s where the Canadian angle comes in. As the U.S. makes it costlier to hire foreign talent, Canada could benefit – if it positions itself well. The new $100,000 fee dramatically raises the cost barrier for U.S. employers. As a result, some may scale back international hiring altogether or shift toward remote roles that don’t require U.S. work authorization. 

A smarter alternative could be to bring this talent to Canada rather than relying solely on fully remote roles. This approach keeps workers in similar time zones and closer to North American headquarters, offering practical advantages for collaboration and operations. 

At the same time, highly skilled talent abroad may start looking to countries with more predictable and affordable immigration systems, rather than chasing the increasingly uncertain American dream. 

A Complicated Time for Canada’s Temporary Foreign Worker Program 

Two years ago, Canada would have jumped on this moment of uncertainty. In fact, in 2023, it did just that with its H-1B visa holder open work permit, a one-of-a-kind program offering work permits for up to 10,000 H-1B visa holders from the U.S., which filled its cap in less than 48 hours. 

But today, this opportunity comes at a time when Canada’s Temporary Foreign Worker Program (TFWP) is under its own scrutiny over worker protections and wage standards, with some prominent voices even calling for the program to be phased out entirely. Much like the criticisms fueling the H-1B overhaul in the U.S., opponents argue that employers are abusing the TFWP, leading to downward pressure on wages and fewer opportunities for Canadian workers. 

While supporters point out that the program fills critical labor shortages across multiple sectors, the timing of this debate complicates Canada’s ability to position itself as the obvious alternative for highly skilled talent facing new barriers in the U.S. 

What Options Remain Available in Canada 

Despite the scrutiny surrounding the Temporary Foreign Worker Program (TFWP), Canada still has several pathways that could make it an attractive alternative for highly skilled workers facing barriers in the U.S. 

Inter-Company Transfers (ICT): For companies operating in both the U.S., Canada and a third country, transferring talent to Canadian offices can be far simpler than navigating the new U.S. requirements. While the U.S. has its own L-1 visa for intra-company transfers — which, notably, is not impacted by the new proclamation — Canada’s ICT work permit offers a competitive option with fewer restrictions and, in many cases, faster processing. 

Global Talent Stream (GTS): Although part of the TFWP so it’s future remains unknown for now, this stream offers work permits in as little as two weeks for high-demand tech and STEM roles. It’s designed to help Canadian employers quickly bring in the talent they need, especially in sectors where domestic labor supply is limited. 

Express Entry (STEM Draws): On the permanent residency side, since 2023, Canada has held occupation-specific Express Entry draws targeting STEM, healthcare, trade, agricultural and education professionals. While STEM draws are not a priority for 2025, they are set to return in 2026, making this a future-focused pathway for skilled workers looking for long-term settlement. 

Provincial Nominee Programs (PNPs): Many provinces, including Ontario and British Columbia, actively run immigration initiatives focused on tech workers. PNPs have faced challenges in 2025, with restricted quotas limiting their reach. Still, much like the Express Entry system, PNPs remain a future-focused pathway that could become increasingly important as Canada looks to attract and retain global talent in the years ahead. 

For skilled workers frustrated by the U.S. immigration system, Canada offers a combination of faster processing times, lower costs, and clearer routes to permanent residency. Employers in Canada, meanwhile, stand to benefit from a global talent pool that might otherwise have gone to the U.S. However, as we’ve seen in the past week, Canada’s own immigration programs are not free from criticism, and changes could be just around the corner here as well.