H-1B Layoff Threat Sends PERM Process Into Chaos, Experts Warn

employers and foreign workers are watching the rules shift in real time. fee surcharges for overseas H-1B petitions, the Gold Card pathway, and pause rules for Countries of Concern now reshape eligibility, costs, and timelines for H-1B visa holders and PERM-based permanent residency.

The result is a system that can change your plan based on where you are located, when you file, and whether a layoff hits at the wrong moment.

Section 1: Official USCIS/DHS Statements and Key Dates

USCIS, DHS, and DOL have each taken actions that hit different parts of the pipeline. some changes are immediate and filing-based. Others are staged and selection-based.

Timing is now a compliance issue, not just a planning detail. USCIS guidance on October 20, 2025 clarified a Presidential Proclamation tied to a $100,000 supplemental H-1B payment.

The trigger is not “when you heard about it.” The trigger is the effective date, meaning when a petition is filed and who the beneficiary is on that filing date.

under the uscis guidance, the Proclamation applies to new overseas H-1B petitions filed at or after 12:01 a.m. EDT on September 21, 2025, for beneficiaries outside the U.S. who do not have a valid H-1B visa. A federal court fight followed. On December 23, 2025, a federal judge in D.C. upheld the fee and dismissed a challenge brought by the Chamber of Commerce.

📅 Deadline reminder: The $100,000 H-1B fee applies to new overseas petitions filed on/after September 21, 2025; and wage-based H-1B selection takes effect February 27, 2026 (FY 2027).

DHS also finalized a structural change to how H-1B slots are picked. On December 23, 2025, DHS finalized Wage-Based H-1B Selection, replacing a purely random lottery with a weighted selection that favors higher-paid, higher-skilled workers.

The key timing detail matters: it is effective February 27, 2026, and applies to the FY 2027 season. A later effective date can still change how employers set salaries, titles, and job locations today.

Wealth-based access arrived in parallel. On December 10, 2025, the administration launched the Trump Gold Card concept: an expedited permanent residency path tied to a $1,000,000 gift to the U.S. government, or $2,000,000 for corporate sponsorship.

Official framing presented it as a direct path to citizenship for “qualified and vetted” people. That framing matters because it signals where vetting resources may go.

Security posture tightened too. DHS announced a pause on reviewing certain cases for 19 Countries of Concern on December 3, 2025, then expanded the list to 39 on January 1, 2026. A “pause on reviewing” is not the same as a denial. It can still stop cases cold.

Finally, DOL remains the gatekeeper for PERM. A late-2025 shutdown created processing disruption and added friction to timing-sensitive filings, even when the underlying PERM regulation did not change.

Section 2: Impact on PERM and Layoffs

Layoffs collide with PERM because PERM is built on a test of the U.S. labor market. DOL’s PERM regulation includes a layoff-related safeguard often called the Six-Month Rule. Conceptually, it asks: did the employer lay off U.S. workers close in time to filing a PERM for a similar role?

Trigger points are practical, not academic. If an employer conducts a layoff in the same area of intended employment and in the same or a related occupation within 6 months of filing a PERM application, the employer must notify and consider potentially qualified laid-off U.S. workers.

“Same area” generally tracks where the job is located, not where headquarters sits. “Related occupation” often turns on overlapping duties, skills, and career progression. “Consideration” is more than a paper step — it commonly means the employer should be ready to show a real review process and lawful, job-related reasons if a worker is not selected.

Hiring teams feel the squeeze because layoffs can force uncomfortable choices. Delay PERM and risk losing time in a worker’s status plan. File PERM and accept higher audit risk if layoffs are nearby in time and role. Either path can slow the worker’s route to a green card, especially when DOL processing times are already long.

Job loss creates a second problem for H-1B visa holders: the 60-day grace period after termination. That window is supposed to allow time to find a new sponsor or change status. In practice, late-year layoffs can push people toward travel and consular processing.

Under the new regime, leaving the U.S. can turn a later return into an overseas H-1B petition scenario. That is where the $100,000 supplemental payment can come back into the story. USCIS publishes general guidance on post-termination options in USCIS (Options for Nonimmigrant Workers Following Termination of Employment). That page matters because it frames what is possible during the grace period.

Processing disruption adds another layer. A shutdown or backlog can create “administrative” extensions and shifting deadlines, and it can break carefully planned recruitment calendars. DOL OFLC has also shown how quickly processing pace can change.

Expect employers to document timelines with more care, especially where a layoff, recruitment, and a filing deadline sit close together.

✅ Action for layoffs: If you are an employer or H-1B worker facing layoff, document reliance on extensions and be aware of potential PERM timing disruptions and the 6-month rule.

Section 3: Financial and Access Barriers Reshaping the System

A $100,000 supplemental payment changes employer behavior even when the role is legitimate and urgent. The practical effect is simple: overseas H-1B petitions become a high-cost bet, and employers may avoid them.

That can reduce mobility for workers who leave the U.S. during a gap in employment, even when they remain fully qualified. Consular posture matters here. A worker who is inside the U.S. and can transfer status may be cheaper to hire than a worker who must process abroad and triggers the supplemental payment.

That difference can shape who gets interviewed, not only who gets filed. Gold Card sits apart from this employer-driven model. Traditional employment-based permanent residence often runs through PERM recruitment, then an immigrant petition, then adjustment of status when eligible.

The Gold Card concept instead offers an expedited path tied to a $1,000,000 gift or $2,000,000 corporate sponsorship, with vetting built in. It is framed as a fast lane, not as a PERM substitute for typical workers. That creates a two-tier feel: one track where time and salary strategy drive outcomes, another where wealth can shorten the line.

Parts are confirmed and parts depend on implementation. The fee is in force after December 23, 2025. Wage-based selection has an effective date of February 27, 2026. Gold Card’s day-to-day processing rules will still depend on how agencies staff it and publish procedures.

Section 4: Countries of Concern: Scope and Delays

“Pause on reviewing” usually means adjudicators stop final action while extra screening, policy review, or resourcing shifts occur. It often leads to longer waits and more requests for evidence. It does not automatically mean a denial unless the announcement says so.

DHS announced a pause on reviewing certain pending benefits for 19 Countries of Concern on December 3, 2025, expanded to 39 on January 1, 2026. The affected benefit types were described as including green cards, citizenship, and asylum.

That matters even to H-1B visa holders because family members may be tied to those processes, and because a long-held green card case can influence travel choices. Downstream effects can show up in awkward places: a delayed green card case can keep someone relying on temporary status longer than planned.

Dependent cases can stall together. Travel can become riskier if a person expects a routine interview or approval and instead hits an indefinite hold. Security rationales also change what “normal” evidence looks like.

Higher overstay or fraud concerns can translate into deeper background checks, longer processing, and more scrutiny of identity, travel history, and prior immigration records. Workers should expect timelines to be less predictable.

Section 5: Significance and Individual Impact

A directional shift is now hard to miss. H-1B selection is moving toward wage-weighting, which favors higher-paid roles. At the same time, the system adds wealth-based access through Gold Card and expands security screening through Countries of Concern pauses.

Skills still matter. Yet wealth and security posture now play a larger role in who moves fast and who waits. “Indefinite pause” risk is not abstract — a case can sit without action, which affects job changes, dependent planning, and travel decisions.

Employers may also hesitate to sponsor complex cases when timelines cannot be estimated. Re-entry risk is the new pressure point for laid-off workers. Some H-1B visa holders once left the U.S. to pause their time or wait for a better offer.

After September 21, 2025, a later return that requires a new overseas H-1B petition can trigger the $100,000 supplemental payment, depending on facts like location and visa validity. That can change what “taking a break abroad” costs a future employer.

Section 6: Official Government Sources

USCIS, DHS, and DOL pages are the safest way to confirm what applies to your case. Focus on effective dates, fee pages, FAQs, and policy alerts. Save date-stamped copies for your records.

• USCIS (Options for Nonimmigrant Workers Following Termination of Employment): USCIS — Options for Nonimmigrant Workers Following Termination of Employment
  Best for: grace-period framing and post-termination options.
• DOL OFLC processing data: DOL — Foreign Labor Certification Performance Data and OFLC — Foreign Labor Certification
  Best for: PERM processing times, operational updates, and public performance reporting.
• USCIS case tools: USCIS — Case Status Online and USCIS — myUSCIS
  Best for: case status tracking and account-based notices.

Mark February 27, 2026 on your calendar now. That effective date is when wage-based H-1B selection starts shaping FY 2027 outcomes, and employers will be building filing strategies well before then.