US Healthcare Industry Continues to Push for Exemptions to $100,000 H-1B Fee

In September 2025, President Trump instituted a prohibitive $100,000 fee on new H-1B visas. While lawsuits against the fee have been ongoing, the fee currently remains in effect. Hospitals, medical schools, and other healthcare companies have continued their calls for an exemption from the fee for international healthcare professionals who are essential to the US healthcare system.

In a recent article, the American Association of Medical Colleges (AAMC) raised concerns about how the fee is already affecting major staffing decisions for US hospitals approaching national Match Day with graduating medical students on March 20, 2026.

AAMC reports that in a fall survey by the Greater New York Hospital Association (representing 260 hospitals across NY, NJ, CT, and RI), 25% of hospitals said they had paused, deferred, or limited recruitment of physicians requiring H‑1B visas. Those hospitals currently employ 1,100 H‑1B medical residents and 800 H‑1B attending physicians, highlighting the scale of potential disruption.

Importantly, AAMC emphasizes that visa‑holding physicians do not displace U.S. graduates; in fact, 97.8% of U.S. MD seniors matched into residency positions in 2025.

International medical graduates make up about 25% of all practicing U.S. physicians. In fiscal year 2024 alone, approximately 11,000 new H‑1B visas were approved for physicians, who disproportionately practice in rural and high‑poverty counties and are more likely to work in primary care.

AAMC has cosigned multiple letters, joining medical organizations, institutions of higher education, and health professions education groups, in requesting that the U.S. Department of Homeland Security (DHS) exempt these groups from the fee. AAMC also sent a letter to DHS Secretary Kristi Noem in December 2025, warning that the proclamation will worsen the nation’s existing workforce shortage, further strain the health care workforce, and ultimately jeopardize patient access to care.