Update on H-1B Visas

The U.S. government has recently announced significant changes to the H-1B visa program, which is widely used by U.S. employers – particularly in technology and other professional sectors – to hire foreign workers in specialty occupations. Below is an overview of the key changes:

1. Introduction of a $100,000 Fee

Under a presidential proclamation issued on September 19, 2025, employers filing H-1B petitions must now pay an additional $100,000 fee for each new petition where the beneficiary is outside the United States and does not hold a valid H-1B visa.

USCIS has clarified that this new fee does not apply to:

• Petitions requesting a Change of Status (COS), Extension of Status (EOS), or Amendment, where the request is granted; and

• Visa applications following petitions that were approved as a COS, EOS, or Amendment.

In practical terms, if the beneficiary is already in the U.S. in another status that permits a change or extension to H-1B, the additional fee will not apply.

USCIS has also released limited guidance on National Interest Exemptions (NIE) from the new fee. These will be granted only in exceptionally rare cases where:

• A particular beneficiary’s presence in the United States as an H-1B worker is in the national interest;

• No U.S. worker is available to fill the role;

• Requiring the employer to pay the fee would significantly undermine U.S. national interests; and

• The beneficiary does not pose a threat to U.S. security or welfare.

The B-1 in lieu of H-1B visa category has also been negatively affected due to its association with the H-1B classification.

Multiple lawsuits, led by organizations including the U.S. Chamber of Commerce, have challenged the new fee. Nonetheless, USCIS has begun implementing it.

2. Changes to the H-1B Lottery Selection System

Because annual demand for H-1B visas consistently exceeds the available cap, the government has long used a lottery system to randomly select beneficiaries.

Under new rules, the lottery will now favor higher-paid workers. Selection chances will correspond to the beneficiary’s wage level under Department of Labor standards:

• Level 4 wage: 4 chances

• Level 3 wage: 3 chances

• Level 2 wage: 2 chances

• Level 1 wage: 1 chance

This follows a previous reform aimed at limiting multiple employers from submitting duplicate registrations for the same beneficiary with the sole purpose of increasing their selection chances.

The next H-1B lottery is expected in March 2026 for employment beginning October 1, 2026.

Outlook

These new restrictions are likely to encourage employers to consider alternative visa categories such as the O-1, E-1/E-2, L-1, or J visas.

Magrath Sheldrick continues to monitor these developments closely. For tailored advice, please contact US Attorney Izidora Levi at [email protected].