Understanding the New H-1B Process in 2026 — and the $100,000 Fee

The H-1B visa has long been one of the most important pathways for U.S. employers to hire highly skilled international talent. In 2025–2026, the process itself has undergone some of its most consequential changes in years, including a restructuring of the lottery selection system and the introduction of a controversial $100,000 fee for new petitions. These changes reflect broader policy goals but also raise practical questions for employers and applicants alike. Here’s a clear, practical overview of what’s new, what it means, and how to navigate it intelligently.

1. A New H-1B Lottery Process for 2026

Effective February 27, 2026, the U.S. Citizenship and Immigration Services (USCIS) implemented a weighted H-1B lottery system. Under this revised process, employers offering higher wages—specifically those at the top wage levels (Level IV under Department of Labor wage categories)—receive more “tickets” or entries in the lottery selection pool. This change is designed to:

• Incentivize higher wages for H-1B workers;

• Prioritize employers who pay more competitively; and

• Reduce perceived abuses of the cap lottery system.

For employers, this means that strategic wage setting is now not only a compliance requirement but also a lever to improve chances of selection in the lottery. Talent planners should review prevailing wage determinations early to optimize their filings.

2. The $100,000 Fee: What It Is and Who Pays It

One of the most discussed changes is a $100,000 fee imposed on certain H-1B petitions as part of a Presidential Proclamation titled “Restriction on Entry of Certain Nonimmigrant Workers.” Signed in September 2025, this rule took effect on September 21, 2025.

Key points about the fee:

• It is a one-time, flat payment per H-1B petition filed after the effective date.

• The fee applies to new H-1B petitions—primarily for workers outside the United States seeking to enter on H-1B status.

• Current H-1B holders are exempt from this fee for renewals, extensions, or changes of status within the U.S.

• It does not apply retroactively to petitions filed before September 21, 2025.

In practice, this means employers sponsoring a first-time H-1B hire who is abroad and needs consular processing must budget for this significant cost, in addition to standard USCIS filing fees. Extensions, amendments, and transfers for employees already in the U.S. on valid H-1B status generally remain free of the $100,000 surcharge.

3. Why These Changes Were Introduced

The administration has framed the new fee and lottery weighting as part of a broader effort to:

• Discourage perceived misuse of the H-1B system;

• Encourage employers to hire U.S. workers first where possible;

• Prioritize high-wage, specialized roles in the lottery; and

• Increase integrity and fairness in program administration.

How long the fee will remain in place is currently tied to the proclamation’s one-year timeframe (through September 21, 2026), with possible extensions pending further review.

4. Practical Impacts for Employers

Budgeting & Planning

The addition of a six-figure fee on new H-1B visas will likely prompt employers to re-evaluate:

• Recruitment timelines;

• Whether to convert existing employees through change of status (which is typically exempt from the new fee);

• Cost-benefit analysis of bringing talent from abroad versus other visa categories; and

• How to structure compensation to maximize weighted lottery chances.

Cap Subject vs. Cap Exempt

Because the fee affects cap-subject petitions filed after the 2025 threshold, employers may prioritize cap exempt hires (e.g., nonprofit research roles) or consider alternative immigration pathways where feasible.

5. What Applicants Should Know

For highly skilled professionals seeking their first H-1B visa from abroad, the new fee adds a notable upfront cost to their employer’s sponsorship plans. But current H-1B holders, graduates on F-1 OPT or STEM OPT adjusting status within the U.S., and those renewing or extending an existing status are not currently subject to the new charge.

In Summary

The H-1B process in 2026 reflects both policy shifts and practical recalibrations. A wage-weighted lottery aligns the program with market-based prioritization, while the $100,000 fee represents a significant new budget line for employers bringing first-time H-1B workers from abroad. Although the changes add complexity, they also create predictable rules around wage incentives and selection odds—which employers can leverage through early planning and strategic filing.

For companies committed to building global talent pipelines, understanding these developments now will be a competitive advantage in the coming fiscal year.

Looking Ahead

The H-1B program continues to evolve, and while the new process and the $100,000 fee introduce additional complexity, they also underscore the importance of early, strategic planning. Employers that understand the rules, budget realistically, and align immigration strategy with business needs remain well positioned to succeed. If you have questions about how these changes may impact your organization, a specific candidate, or your broader workforce planning, I welcome you to reach out to discuss your options and develop a thoughtful, compliant approach tailored to your goals.