Many U.S. businesses used to hire foreign nationals using the non-immigrant H-1B visa. Employees with a Bachelor’s degree and higher, qualifying for specialized job positions, were eligible for H-1B visas given for 3 years at first, with an extension for 3 more years possible. The visa’s cost was $2,000-$5,000 per year, covered by employers. This way, H-1B visas were an affordable opportunity to engage foreign labor for up to 6 years without undergoing the immigration hassle.
In September 2025, the White House issued a sweeping Executive Order introducing a one-time fee of $100,000 per H-1B visa application. Designed to discourage overreliance on foreign labor, the measure is now reshaping how U.S. businesses think about hiring, cost efficiency, and compliance.
While the announcement was framed as an immigration reform, its true implications reach far beyond. For HR executives, finance leaders, and technology firms, it represents a structural shift that directly influences workforce strategy, cost modeling, and long-term planning. Here is a detailed breakdown of H-1B visa nuances, the business impact of legal changes, and new strategies that help businesses stay competitive with GEOR services.
What’s Behind the $100K H-1B Fee
Under the Executive Order, each new or renewed petition for an H-1B visa requires a $100,000 upfront payment to the U.S. Treasury.
According to The Washington Post, the U.S. administration aims to “level the playing field” for domestic workers while discouraging dependency on imported labor.
Meanwhile, Fox News reports that supporters of the order view it as protection against “outsourcing in disguise,” where companies import talent through visa programs rather than hiring locally.
However, industry analysts warn that this policy disproportionately affects high-skill sectors like technology, finance, and health IT — industries already facing severe domestic skill shortages.
The Business Impact: Turning Policy into Real Numbers
The practical consequences of rising H-1B costs are substantial. A mid-sized technology company sponsoring just ten engineers would now face an additional $1 million in costs in addition to standard legal, relocation, or administrative expenses associated with bringing specialized talent on board.
This new burden stacks on top of existing prevailing-wage requirements and legal filing fees, pushing the total onboarding cost of a foreign employee 40–60% higher than before.
For most companies, that’s not a marginal increase — it’s a strategic inflexion point. New rules pressure HR and finance leaders to re-evaluate the viability of in-country hiring and weigh the long-term returns of distributed hiring models as an alternative.
Comparing Onsite H-1B Hiring and Remote Global Teams
Until now, H-1B visas used to be the go-to channel for bringing specialized global talent into the U.S. But the new policy’s financial barrier makes the traditional model increasingly difficult to justify. Here’s how pursuing on-site H-1B employment compares to setting up remote global teams.
| Onsite H-1B Employment | Remote Global Teams | |
|---|---|---|
| Advantages | - Physical presence - Cultural integration - Direct management oversight | - Lower fixed costs - Faster hiring cycles - Access to worldwide talent pools |
| Drawbacks | - Drastically higher costs under the new fee regime - Longer processing times - Exposure to future policy changes | - Lack of control over remote teams - Data privacy issues - Time zone differences |
| Risks | Companies depending heavily on H-1B labor now face unpredictable budgeting cycles | Potential exposure to the proposed HIRE Act, which could add a 25% excise tax on offshore contractor payments if deliverables are used by U.S. customers |
Both options come with pros and cons with far-reaching effects on business performance and hiring. Therefore, this emerging landscape is pushing companies toward hybrid models — structures that combine U.S.-based contractual compliance with the efficiency of distributed international teams.
Why Compliance Now Defines Competitiveness
In previous years, distributed hiring decisions were largely driven by cost and talent availability. In 2025, compliance has become the third pillar.
The interplay between the H-1B Executive Order and the pending HIRE Act means companies must now balance two regulatory risks:
- Paying six-figure fees for onsite visas, or
- Facing potential excise taxes for offshore service delivery.
Organizations that fail to adapt may find themselves squeezed from both ends — either overpaying for visas or being penalized for overseas contracts. Those that adapt early, however, can transform compliance into a competitive advantage.
How GEOR Helps Companies Stay Compliant and Cost-Efficient
For businesses that rely on global engineering or data talent, GEOR provides a ready-to-deploy solution that preserves flexibility while staying fully compliant with both federal labor and tax regulations.
Through its U.S.-registered entity, Geomotiv, the company enables clients to:
- Keep payments domestic, avoiding exposure to the proposed 25% excise tax under the HIRE Act.
- Deduct labor costs as standard U.S. business expenses, ensuring they remain fully tax-efficient.
- Leverage international expertise within a legal and regulatory framework approved by U.S. authorities.
In practical terms, this means companies can maintain distributed teams worldwide — developers in Eastern Europe, Latin America, and Asia — while paying a single U.S. counterparty.
That structure eliminates the need for direct cross-border payments, keeps accounting simple, and ensures every dollar spent on talent contributes to deductible operational costs.
As a result, clients of GEOR can bypass both the six-figure visa fees and the tax exposure associated with offshore contracting. A potential compliance headache becomes a streamlined, legally sound operating model.
Strategic Steps for Your 2025 Hiring Plan
The path forward is not simply about avoiding new costs — it’s about building resilience into hiring architecture. Below are four actionable priorities for U.S. executive teams:
Map out how many employees rely on H-1B sponsorships or offshore contracting arrangements, and calculate the full cost implications.
Compare the total cost of ownership for domestic hires versus compliant distributed teams using partners like GEOR.
Engage partners who can handle cross-border payrolls and contracts under U.S. legal structures.
Treat workforce strategy like a portfolio — diversified, agile, and ready to pivot as federal legislation evolves.
Take our quick Compliance Checklist to assess your current hiring and tax setup. You’ll see where your organization stands and what steps you can take to stay compliant — before new costs or penalties take effect.
Case in Point: From Cost Pressure to Strategic Advantage
Consider a health-tech firm that previously relied on a dozen H-1B developers in California. With the new visa cost, onboarding the same number of specialists could exceed $1.5 million in upfront fees.
By using Geomotiv’s U.S. legal entity as an employment partner, a company can retain its global team without paying a visa surcharge or incurring international excise tax liability.
This hybrid approach keeps financial operations domestic while maintaining international-level productivity. Ultimately, such a strategically arranged compliance move becomes a profit driver rather than a constraint.
The Bottom Line
The new H-1B Executive Order underscores the central truth of modern hiring: policy risk is business risk. As global hiring becomes more regulated, compliance is no longer a box to check — it’s a strategy to master. Companies that continue with legacy employment models will face escalating costs and uncertainty, while those that adopt compliant hybrid frameworks gain a decisive advantage by means of retaining flexible, financially predictable and affordable approaches.
GEOR helps U.S. companies stay compliant and cost-efficient under the new H-1B and HIRE Act regulations. We handle payroll, workforce management, and cross-border hiring — all through a U.S.-based entity.