December 23, 2025 became the inflection point for the next H-1B cap season. DHS announced a wage-weighted H-1B selection rule for the FY 2027 cap, replacing the long-running random lottery. The rule takes effect February 27, 2026.
That policy shift is now colliding with an escalating “H-1B Row” narrative. An Indian-American Group reported online threats to the FBI on December 26, 2025, citing violent rhetoric aimed at Indian professionals and the H-1B program.
Where FY 2026 stands today (employment start: October 1, 2025)
FY 2026 is already in its work year. Most cap-subject approvals, change of status outcomes, and start dates have occurred. The new DHS announcement does not change FY 2026 results. It sets the frame for FY 2027 registrations in March 2026.
| FY 2026 Milestone | Date |
|---|---|
| Registration Opens | March 7, 2025 |
| Registration Closes | March 24, 2025 |
| Selection Notification | By March 31, 2025 |
| Filing Window Opens | April 1, 2025 |
| Employment Start | October 1, 2025 |
📅 Key Date: February 27, 2026 is DHS’s effective date for the wage-weighted selection system for the FY 2027 cap season.
FY 2026 vs. prior year: what changed, and what did not
Two foundational numbers remain unchanged across recent years. Congress’s statutory cap is still 85,000 total slots. That includes 65,000 regular cap numbers and 20,000 under the U.S. advanced degree exemption.
| Cap Category | Annual Limit |
|---|---|
| Regular Cap | 65,000 |
| U.S. Master’s Cap | 20,000 |
| Total Cap | 85,000 |
The biggest operational change entering FY 2026 was not wages. It was the beneficiary-centric selection approach. USCIS moved toward one registration per beneficiary, even if multiple employers register. That shift aimed to reduce duplicate entries and manipulation.
For FY 2027, DHS is going further. The agency says it will award better odds to higher wage levels, with preference described for Level IV and Level III wages.
What DHS and USCIS said in late December 2025
DHS and USCIS messaging in late December centered on program integrity and fraud prevention. DHS stated that future selections will be weighted based on wage levels. USCIS leadership also emphasized aggressive anti-fraud actions.
This rhetoric has intensified community debate. It also coincides with a real security issue. The Indian American Advocacy Council (IAAC) reported a rise in online threats. IAAC said posts included calls for violence and job-theft accusations.
Employers should treat this moment as both a compliance and a duty-of-care issue. Employees should treat it as both a planning and a travel-risk issue.
⚠️ Employer Alert: Increased scrutiny often shows up first in Requests for Evidence. Expect questions on specialty occupation, work location, and wage level.
How wage levels intersect with the new weighted selection
The H-1B wage level comes from the LCA process. It is tied to the SOC code and the worksite location. It also reflects expected experience and supervision.
| Level | DOL Description | Percentile | Typical Experience |
|---|---|---|---|
| Level I | Entry | 17th | 0-2 years, close supervision |
| Level II | Qualified | 34th | 2-4 years, limited judgment |
| Level III | Experienced | 50th | 4-6 years, independent |
| Level IV | Fully Competent | 67th | 6+ years, expert |
If DHS weights selection by wage, the wage level becomes a front-end strategy issue and a back-end compliance risk. Employers must still pay the higher of the prevailing wage or actual wage. The wage cannot be inflated for lottery advantage if duties do not support it.
What happens after selection vs. non-selection (cap-subject)
If selected
- Employer files the H-1B petition during the filing window. For FY 2026, that window ran April 1 to June 30, 2025.
- A complete filing includes the certified LCA, detailed specialty occupation evidence, and correct fee payments.
- Employee timing depends on case type:
– Change of status cases start work October 1 if approved.
– Consular cases require visa stamping before entry.
If not selected
- A non-selected registration has no work authorization value.
- Employers commonly pivot to bridge options: F-1 OPT / STEM OPT (if available), cap-exempt roles, or other visa categories.
- For Indian nationals, long green-card waits often amplify the consequences of a missed selection. That dynamic contributes to the current “H-1B Row” tension.
TIP: Start wage benchmarking now with flcdatacenter.com. Align SOC codes, worksite locations, and duties, then compile per-role wage data to back up higher wage levels for the FY 2027 pool.
Travel and visa stamping: December 2025 risks
The source reporting describes expanded online presence reviews for H-1B and H-4 applicants, effective December 15, 2025. That type of screening can slow consular processing.
Employees should plan for longer visa stamping timelines. They should carry consistent documentation and expect questions about employment, location, and duties.
Employers should prepare:
– Travel letters,
– End-client support letters (when relevant),
– Clear documentation for third-party placement arrangements, since those remain a high-scrutiny area.
💼 Employee Tip: If you must travel, confirm whether your case is change of status or consular processing. That choice controls re-entry steps and timing risk.
The $100,000 fee and who may be affected
The source reporting describes a $100,000 fee for certain new H-1B applicants, with later clarifications that it applies mainly to offshore applicants. This is separate from standard USCIS fees.
Standard H-1B filing costs remain a major budgeting issue for employers. Employers must pay required fees. Employees can only pay optional items in limited situations.
| Fee Type | Amount | Who Pays |
|---|---|---|
| Registration | $215 | Employer |
| Base Filing (I-129) | $780 | Employer |
| ACWIA Fee (25+ employees) | $1,500 | Employer |
| ACWIA Fee (<25 employees) | $750 | Employer |
| Fraud Prevention Fee | $500 | Employer |
| Premium Processing | $2,805 | Either |
Alternatives for those shut out of the cap
Several options can keep employment moving. Each option has strict eligibility rules.
| Alternative | Best Fit | Notes |
|---|---|---|
| Cap-exempt H-1B | Universities, nonprofit affiliates, research orgs | No lottery. Filing is year-round. |
| O-1 | High-achievement candidates | Strong evidence burden. Works well for senior engineers and researchers. |
| L-1 | Multinational transfers | Requires qualifying foreign employment and corporate relationship. |
| TN | Canadian and Mexican professionals | Role must fit NAFTA/USMCA list. Not available to Indian nationals. |
| E-2 / E-1 | Treaty investors/traders | Depends on nationality and ownership structure. |
| STEM OPT | F-1 STEM graduates | Timing is strict. Employer must use E-Verify. |
Projected FY 2027 timeline (based on typical cap season cadence)
FY 2027 is the first season expected to operate under the wage-weighted selection rule, effective February 27, 2026.
| FY 2027 Milestone | Expected Timing |
|---|---|
| Wage-weighted rule effective | February 27, 2026 |
| Registration window | Early-to-mid March 2026 |
| Selection notifications | Late March / early April 2026 |
| Filing window | April 1 – June 30, 2026 |
| Employment start | October 1, 2026 |
⏰ Deadline: Start LCA and wage planning in January 2026. March registrations arrive quickly, and LCAs take time.
REMINDER: The wage-weighted rule takes effect February 27, 2026. Begin planning in January 2026, and confirm LCA details, site locations, and roles to minimize RFEs and delays in the filing window.
What employers and employees should do now (December 29, 2025)
Employers (action items):
– Review FY 2026 cases for worksite, SOC code, and wage level consistency. Document changes before a site visit occurs.
– Begin FY 2027 planning in January 2026, including wage benchmarking using flcdatacenter.com.
– Update anti-harassment and security procedures. Online threats can spill into the workplace.
– Prepare for increased RFEs on specialty occupation, work location, and wage level.
Employees (action items):
– Confirm your petition lists the correct work location and duties. Misalignment drives RFEs and travel problems.
– If traveling for stamping, plan for longer screening. Keep social media and employment history consistent.
– If not selected in the cap, ask about cap-exempt roles, O-1, or L-1 pathways by January 2026.
📋 Official Resources:
– H-1B Program: uscis.gov/h-1b-specialty-occupations
– Cap Season: uscis.gov/h-1b-cap-season
– Prevailing Wages: flcdatacenter.com
DHS has finalized a rule to replace the random H-1B lottery with a wage-weighted selection system effective February 2026. This change targets the FY 2027 cycle, favoring high-skilled workers at Levels III and IV. Concurrently, security concerns have risen due to online threats against Indian professionals. Employers face higher fees and stricter scrutiny, while non-selected individuals must pivot to O-1, L-1, or cap-exempt alternatives.
