A sweeping shift in the H-1B program uses a company’s FEIN to vet sponsorship, assign weighted lottery entries by OEWS wage level, and impose a $100,000 tariff on new petitions, with broad implications for workers, employers, and national security screening.
Section 1: Overview: FEIN Changes and Notable Dates
FEIN stands for Federal Employer Identification Number. For years, it mostly functioned like a tax account number. Under the new framework, it acts more like a digital “passport” for an employer.
If the FEIN fails checks, the employer’s H-1B petitions may fail too.
Several dates anchor the rollout. The Proclamation date is September 19, 2025. The $100,000 tariff applies to certain filings starting September 21, 2025.
USCIS later reinforced the fee rule in a January 9, 2026 alert and confirmed lottery changes in January 20, 2026 guidance. The weighted selection system takes effect February 27, 2026.
Section 2: FEIN as a Digital Passport: Vetting and Consistency
USCIS now treats FEIN consistency as a gatekeeper for H-1B eligibility. Think of it like boarding a flight with mismatched ID documents. Even if you are the right person, the mismatch can stop you at the checkpoint.
Under the policy, employers are expected to keep the same legal name, FEIN, and address across filings connected to USCIS, the DOL, and state records. USCIS also uses VIBE (Validation Instrument for Business Enterprises).
VIBE cross-references FEIN-linked business information, including matches against IRS records. A mismatch can trigger a “Hold and Review.” In some cases, it may lead to petition denial.
Past tax non-compliance tied to the FEIN can also become a negative factor. The central idea is simple: the employer’s identity has to line up everywhere, or the petition may be treated as unreliable.
Section 3: Wage-Level Weighting and the FEIN-Linked Lottery
Starting February 27, 2026, the H-1B cap selection moves away from a purely random lottery. USCIS will weight registrations based on two inputs.
One input is the employer’s FEIN. The other is the offered OEWS wage level for the role. OEWS is the wage framework used to place jobs into wage “levels.”
Under the new approach, employers must report the OEWS wage level at the registration stage. Higher wage levels get more entries, which can increase selection chances for those registrations.
| Wage Level | Entries Allocated | Description |
|---|---|---|
| Level IV | 4 entries | Highest wage tier; receives the most weighted entries |
| Level III | 3 entries | Upper-mid wage tier; more entries than Levels I–II |
| Level II | 2 entries | Mid wage tier; moderate weighting |
| Level I | 1 entry | Entry wage tier; single entry |
This design also ties outcomes to the employer record behind the FEIN. If the FEIN is flagged, extra “entries” may not help. The registration can still stall in review.
Section 4: Fees, Exemptions, and Employer Financial Burdens
A second change is financial. New H-1B petitions can require a $100,000 tariff paid through Pay.gov. USCIS has described the payment as a condition of eligibility for covered filings.
Failing to include it when required can sink the case.
⚠️ Note the $100,000 fee applies to new petitions filed after Sep 21, 2025; exemptions include certain status-change petitions and extensions
The timing matters. The fee applies to new H-1B petitions filed on or after September 21, 2025 at 12:01 a.m. EDT. USCIS reiterated the point in an alert dated January 9, 2026.
Exemptions can apply in many cases. Change-of-status filings and extensions for existing H-1B workers may not be subject to the $100,000 tariff, if status is maintained.
Details can depend on how the petition is classified, so employers often confirm with counsel before filing. The practical effect is a steep barrier for some employers.
Many smaller firms may conclude they cannot afford new sponsorship. Others may seek “National Interest” style arguments where available, though outcomes are never assured.
Section 5: Enforcement Philosophy and Policy Context
DHS has paired these administrative changes with a tougher enforcement message. On January 26, 2026, DHS official Tricia McLaughlin said:
“President Trump and Secretary Noem unleashed ICE to target the worst of the worst. We are delivering on the American people’s mandate to make America safe again, and we’re just getting started.”
That tone matters for H-1B adjudications, even when the case is handled by USCIS rather than ICE. Integrity screening, employer legitimacy checks, and national security framing can shape how risk is assessed.
FEIN-based screening fits that direction because it makes employer identity a primary checkpoint.
Section 6: Impact on Individuals: Hold, Review, and Nationality Considerations
For workers, the biggest shift is where the risk sits. Under FEIN-centered vetting, problems tied to the employer can spill across the workforce.
One employer issue can affect many people. A flagged FEIN can place multiple petitions into “Hold and Review,” or lead to petition denial, even if each worker is otherwise qualified.
That is the “collective liability” concept. The employer’s compliance record becomes a shared dependency.
Workers may feel the change most during job moves. A new employer’s FEIN history and record matching can matter as much as the job offer itself. Even timing can matter, since a case can be slowed by verification steps outside the worker’s control.
Nationality can also shape the lived experience, even when the formal rule is FEIN-based. Extra security review patterns can intersect with broader country-based actions discussed below.
Section 7: Additional Impacts: Refugees, Visa Freezes, and Country Restrictions
Broader DHS actions add context to the H-1B tightening. Under Operation PARRIS, DHS has been re-verifying the status of resettled refugees. Some people with green card claims have faced re-interviews when inconsistencies appear.
Separately, immigrant visa processing has been paused for nationals of 75 countries as of January 21, 2026. While that is not an H-1B petition rule, it signals a wider screening posture.
For families planning long-term immigration steps, a visa pause can affect timelines and choices.
Section 8: Official Sources and Where to Read More
USCIS and DHS have posted key updates through their official channels. Readers can review primary material here:
- USCIS Newsroom
- USCIS Form I-129 page (H-1B proclamations and fee notes)
- U.S. Department of Labor and Foreign Labor Certification
A related policy record also appears in Administrative references to notices, including the Federal Register entry titled “H-1B Modernization” (listed as 89 FR 103054).
Employers and workers should treat February 27, 2026 as a hard operational deadline. By then, FEIN consistency and OEWS wage level reporting will directly shape who gets picked and who gets paused.
This article discusses regulatory changes with potential legal consequences. Readers should consult official guidance and an immigration attorney for individual circumstances.
