Legislative History of the H-1B Visa

On November 29, 1990, President George H. W. Bush signed the Immigration Act of 1990, which created the H-1B visa program. The H-1B Visa is an immigration pathway that allows American companies to employ foreign workers in technical occupations. As a result of the H-1B Visa Reform Act of 2004, a company, corporation, or firm must prove that the H-1B employee will not displace American citizens in that role. On October 16, 2000, President Bill Clinton signed bills increasing both the number of H-1B petitions companies could file and the required fee for sponsoring them. In 2015, President Barack Obama created the “H-4 rule,” which allowed some spouses of H-1B visa holders to work in the United States. 

Recent years have seen even more changes to the H-1B program. In his first term, President Donald Trump introduced reforms to the program, including workforce inspections and wage transparency regarding H-1B labor. In one of his final acts in office, President Joe Biden implemented numerous changes to the H-1B visa program, which included expansion of student visas, easier extension pathways for visa holders, and increased worksite visits.

What is the New H-1B Visa Fee?

On September 19, 2025, President Trump announced that employers must pay a $100,000 fee for H-1B visa applications. He claimed that the visa program incentivizes companies to outsource labor. He later clarified that the fee only applied to new visa applications and not renewals. The fee went into effect two days later on September 21. Before the increased fee, employers were required to pay $2,000 to $5,000 per application.

How Could this Impact the Education Sector?

While H-1B visa holders may seem concentrated in technical STEM roles, educators are the third-largest occupation. Universities, which were exempt from the H-1B visa cap, often relied to foreign workers for teaching and researching. Now, universities are facing a crisis of decreased foreign enrollment and greater expenses related to maintaining high standards of research.

The Trump administration asserts that all employers should prioritize recruiting American citizens. This assertion raised controversy in school districts across the nation, who claim to recruit internationally as a result of an American educator shortage. Due to this shortage in labor, about one in every eight teaching positions either sits vacant or is held by someone underqualified. “Educational Services” make up 6.5% of H-1B visas. Visa holders in education often teach science, math, or special education, areas where districts struggle most to find staff.

How Might the New Rules Benefit the Education System?

H-1B Visas Harm American Schools

Proponents of the new H-1B rules argue that school districts exacerbate the existing teacher shortage by relying on international recruits. One county in South Carolina fills a quarter of their teaching positions with international recruits. This reliance, according to the Trump administration, works against increased wages for competitive American teaching candidates.

To address the teacher shortage crisis, some experts advocate for long-term solutions such as alternative certification programs, financial incentives, mentorship programs, professional development opportunities, improved working conditions, and local talent pipelines. The teacher shortage is a self-informing cycle, meaning that one of these factors worsening creates a chain reaction in the others.

Visas Lead to Wage Suppression and Might Deter Americans from the Profession

The Trump administration claims that the new H-1B fee will incentivize companies to hire Americans. Taylor Rogers, a White House spokesperson, says that the President “promised to put American workers first,” claiming the fee will discourage school districts from driving down wages. The administration contends that H-1B visa workers have limited bargaining power and will accept wages that American workers won’t. In eliminating that option, the administration argues, districts will have no choice but to raise wages and hire Americans. 

Teachers face an underpayment crisis as inflation rises and wages remain relatively stagnant. This is one of the many factors driving extreme turnover within the profession. If the application fee functions as the administration intends it to, wages would increase for American teachers and turnover rates would decrease.

How Might the New Rules Harm the Education System?

High-Need Districts Rely on International Recruits to Fill Roles

Several high-need districts employ a large number of H-1B visa holders, including the Dallas Independent School District, which employed 157 educators through the H-1B visa in the 2025 fiscal year.

Teacher retention is inextricably tied to a number of other concerns: overcrowded classrooms, lack of administrative support, lack of collaboration among teachers, and absence of professional development. School districts claim that H-1B visas are the only solution to avoiding overcrowded classrooms, which they say is unavoidable when foreign labor is completely off the table.

Visa Fees Will Exacerbate Existing Inequality Between Rural and Suburban Districts

While large corporations can foot the bill of the new fee, rural communities cannot. In districts where hiring and retaining teachers is already difficult, the fee may make it nearly impossible for rural and high-need districts to hire qualified teachers. Entire rural economies may take a large hit from the visa fee, which could have extreme effects on both rural schools and hospitals.

Without the possibility of an H-1B visa, many districts will have to use J-1 visas which require teachers to return to their home country once the visa expires. H-1B visas are useful because they create a path to American citizenship where J-1 visas do not. This could lead to an increase in turnover for schools districts that are already struggling.

Recent Developments and Future Outlook

A number of lawsuits have been filed to curb implementation of the visa fee, many of which advocate specifically for rural districts. Beryl Howell, an Obama-appointed federal judge, upheld the fee hike on December 23, 2025. However, on June 8, 2026, the U.S. District Court for Massachusetts struck down the fee and ruled it unlawful. If this decision is appealed, the case could continue to the U.S. Court of Appeals for the First Circuit and potentially the Supreme Court. Either of these courts could overrule the Massachusetts court and reinstate the fee.

The economy and high-need school districts have yet to fully absorb the effects of the Trump administration’s increased fee on H-1B visas.

Frequently Asked Questions