H-1B 2026 Lottery: What the $100,000 Fee Means for Employers

(UNITED STATES) A sweeping new cost requirement is set to reshape the high-skill work visa landscape in the United States 🇺🇸. Under a presidential proclamation now reflected in U.S. Citizenship and Immigration Services (USCIS) guidance, any new H-1B petition filed on or after 12:01 a.m. ET on September 21, 2025 must include a $100,000 fee. The rule captures petitions flowing from the FY2026 lottery as well as any other new H-1B filings after that date.

USCIS has stated that approved petitions, filings submitted before the effective date, and individuals already holding valid H-1B status—such as workers seeking renewals or extensions—are outside the scope. Electronic registration, which is the front door to the H-1B cap selection process, remains unchanged for this cycle, but the financial stakes for moving from selection to filing have risen by an order of magnitude.

How the process still works (but with higher costs)

Employers must still:

• Complete electronic registration within the normal USCIS window.
• List each beneficiary with valid passport or travel document details.
• Wait for selection before filing a full petition.

These structural steps are familiar, but for those selected in March and planning to file the petition after September 21, the economics are completely different. Employers will face:

• Existing statutory and program costs (base filing fee on Form I-129, fraud prevention fee, ACWIA training fee),
• Any optional premium processing (Form I-907),
• Plus the new $100,000 fee.

That fee alone dwarfs the legacy cost model, which previously ran in the low thousands for most cases before legal fees.

Market and sector reactions

The change is prompting intense discussion across corporate boardrooms, hospital systems, university HR offices, and startup founder circles.

• Large firms with deeper balance sheets may treat the new charge as a strategic cost of operating in the U.S. labor market.
• Young companies, nonprofits, and budget-limited employers face hard choices about when to sponsor, whom to sponsor, and whether to keep roles offshore.
• Healthcare organizations warn the levy could harm patient care by making it unaffordable to bring in needed physicians (including residents and fellows) on H-1B visas.
• The American Medical Association and dozens of specialty societies have urged DHS to carve out exemptions for doctors, citing ongoing shortages and direct impacts on underserved areas.

Economists and international commentators — particularly in Indian business media — argue the fee will push employers to keep roles offshore or outsource work, reducing U.S. tax revenue and local consumer spending tied to on-shore jobs while companies still access global talent remotely.

Scope and key clarifications from USCIS

USCIS has clarified these baseline points:

• The proclamation applies only to new H-1B petitions filed on or after the effective date.
• It does not apply to petitions filed before that date, to already approved petitions, or to people who currently hold valid H-1B status and are filing for extensions or renewals.
• Cap-exempt employers (many universities and nonprofit research institutions) are not automatically excused: if the filing is a new H-1B petition on or after September 21, the $100,000 payment applies unless DHS or USCIS grants a specific exemption.

For authoritative program details, USCIS maintains a public page on H-1B specialty occupations and the cap process: H-1B Specialty Occupations.

Open questions and expected guidance

The fee policy leaves several unsettled questions:

• Whether DHS/USCIS will issue exemptions, phased implementation, or waivers (especially for shortage fields like medicine).
• How change-of-employer filings and first-time status changes inside the U.S. will be treated (i.e., whether they are “new” petitions triggering the fee).
• Intersections with parallel categories (H-1B1, E-3) and filings combining multiple actions (change of status plus consular notification).

USCIS may publish more guidance in the coming weeks. For now, its message is clear: new H-1B petitions filed on or after September 21 require the $100,000 fee unless future guidance provides otherwise.

Employer costs and likely market responses

Before the levy, employers budgeting for an H-1B petition typically accounted for:

• Base filing fee (Form I-129): details at Form I-129, Petition for a Nonimmigrant Worker
• Fraud prevention and detection fee
• ACWIA training fee
• Optional premium processing: Form I-907, Request for Premium Processing Service
• Legal counsel and administrative costs

With the new $100,000 fee, what was often a manageable per-hire cost becomes a strategic, board-level decision.

Sector effects to watch:

• Indian IT service providers are likely to pass a sizable share of the new cost to clients. CRISIL estimates a 30–70% pass-through, with sector margins dipping by 10–20 basis points in the next fiscal year.
• Buyers of tech and consulting services may face higher project costs or rebalanced teams (more offshore/near-shore vs. on-site).
• Startups with limited cash may prefer hiring in Canada, Mexico, or Europe, or extend reliance on student work authorization (STEM OPT) rather than paying the levy.
• Hospitals and safety-net systems may sponsor fewer physicians unless exemptions are granted; some may recruit doctors already in H-1B status to avoid new filings.
• Universities and research institutes fear grant-funded labs and tenure-track hires could be affected if new hires require the six-figure payment.

Impact on workers, families, and hiring timelines

For individuals and families, the effects are practical and personal:

• Hiring plans could slow or be delayed.
• Salary offers and on-site placements could shift.
• Selected FY2026 beneficiaries whose petitions are filed after September 21 may trigger the fee unless an exemption is announced.
• Some candidates may be offered remote roles abroad instead of on-shore sponsorship.
• Wage levels for the remaining on-shore sponsored roles might increase as employers seek to justify the investment.

Actionable steps for applicants and employers

Applicants and employers should take concrete steps now:

1. Confirm the filing timeline against the effective date. If a case is truly new and will be filed on or after September 21, 2025, assume the $100,000 fee applies unless exempted.
2. Keep registration data clean. Electronic registration requires accurate passport/travel document information.
3. Model total sponsorship cost per hire, including standard fees, legal costs, optional premium processing, and the new levy.
4. Review internal policies on paying government fees. U.S. rules generally require the employer to cover mandatory filing charges for an H-1B petition.
5. Track sector pass-throughs and client contracts if you provide on-site services; prepare for possible repricing.
6. Assess remote and near-shore alternatives for roles that do not require physical presence.
7. Prepare healthcare and academic exception documentation (community need, patient access, public interest) in case DHS opens exemption pathways.
8. Monitor USCIS official updates and subscribe to alerts on the H-1B program page.

USCIS pages for forms and fees: Form I-129, Petition for a Nonimmigrant Worker and Form I-907, Request for Premium Processing Service.

Four common FY2026 scenarios (concrete examples)

1) Selected in the FY2026 lottery, petition filed after September 21, 2025:
– Employer will need to include the $100,000 fee with the petition unless a qualifying exemption is announced.

2) Already approved or already holding H-1B status:
– Proclamation does not apply; renewals and extensions remain under the usual fee structure.

3) Cap-exempt institutions (universities, nonprofits):
– If the filing is a new H-1B petition on or after September 21, the payment applies unless DHS grants a specific exemption.

4) Startups and small employers:
– The six-figure outlay may be prohibitive; expect exploration of remote-first hiring, near-shore hubs, staggered start dates, or reliance on student work authorization.

Policy, diplomacy, and second-order effects

• Economists, trade groups, and lawmakers debate whether the fee will reduce abuse of the category or suppress on-shore innovation.
• India, with a large stake in the H-1B ecosystem, has raised concerns; bilateral talks may follow if on-site placements decline visibly.
• USCIS must specify payment methods, proof required, and treatment of mixed or complex filings to avoid costly rejections.
• Second-order effects may include changes to employment-based green card demand and shifts of talent flows to other countries or remote models.

Practical planning to soften the shock

Employers with critical FY2026 hires should:

• Build business cases showing why a U.S.-based role is essential (client access, security, lab/hardware needs).
• Set decision gates for leadership review before the petition window opens.
• Test multiple budget scenarios: full sponsorship with fee, remote placement, or hybrid models.
• Group priority hires into a single cycle where possible to streamline approvals.

Workers should:

• Keep passports, degrees, transcripts, and job documentation up to date.
• Discuss timing with employers since FY2026 cap petitions selected in March may not be eligible to file before the effective date.
• Plan fallback options (continued study, alternate work authorization, or international assignments) if petitions are delayed.

Flash points to watch in the near term

• Whether DHS issues targeted exemptions for physicians, public-interest roles, or shortage occupations.
• Speed and extent of IT/consulting firms repricing client contracts and impact on U.S. on-site staffing.
• Bilateral talks with India and any resulting policy tweaks or clarifications.
• Uptake of alternate routes if H-1B filings decline (national interest exceptions, investor categories, or other countries’ residence programs).

Bottom line: The FY2026 lottery will still use electronic registration, and only selected beneficiaries can move to the petition stage. But for any new H-1B petition filed on or after September 21, 2025, USCIS says the $100,000 fee must be included. People already in H-1B status and those filing extensions or renewals are not affected. Employers are rethinking whether to pay, pass costs to clients, or shift roles elsewhere. Applicants should plan with employers for multiple outcomes and watch for any exemptions, especially in healthcare and other shortage fields.

As with every major immigration shift, the human effects will be felt in project teams, clinics, labs, and family plans long before the policy is fully measurable in economic data.