New Proposed Legislation: H‑1Bs for Physicians and the Healthcare Workforce Act

On September 19, 2025, President Trump issued a Presidential Proclamation imposing a new requirement that employers pay a $100,000 fee before sponsoring a foreign worker for H‑1B status.  The $100,000 fee applies only to new H‑1B petitions for foreign workers coming directly from abroad and does not apply to individuals already inside the United States seeking a change of status to H‑1B.  In the weeks following the announcement, U.S. Citizenship and Immigration Services (“USCIS”) clarified that renewals and changes of status, including transitions from F‑1 to H‑1B, are exempt from the $100,000 fee.

The Presidential Proclamation included an exception for workers whose positions are in the national interest.  However, it appears that there have not been any exception requests granted by the Department of Homeland Security (“DHS”), including those for critical healthcare workers who were recruited to work in federally designated Medically Underserved Areas (“MUAs”) and Health Professional Shortage Areas (“HPSAs”).

On March 17, 2026, New York Republican Congressman Mike Lawler and bipartisan co‑sponsors introduced proposed legislation in the House of Representatives to respond to ongoing workforce shortages affecting hospitals and health systems across the country. The bill aims to exempt physicians and other healthcare workers from the $100,000 fee and prohibits additional surcharges beyond those already authorized under existing federal law.

If enacted, the legislation will:

1. Exempt physicians, nurses, allied health professionals, clinical laboratory staff, and other health sector workers from the new $100,000 H‑1B fee; and
2. Prohibit any new H‑1B surcharges from being applied to healthcare workers.

Over 87 million Americans live in federally designated healthcare shortage areas. Healthcare employers—including rural hospitals, community clinics, and academic medical centers—are often unable to fill critical positions due to domestic worker shortages. Imposing the $100,000 fee has prevented many of these employers from hiring urgently needed medical professionals.

This bill signals bipartisan recognition that healthcare workforce gaps pose a national interest concern. Employers should monitor developments closely.