Trump H-1B Visa Changes 2026: $100K Fee, New Lottery Rules

If you hold an H-1B visa or your employer sponsors foreign workers, it is critical to understand the Trump administration's recent policy changes. Two major shifts are now reshaping the program: a $100,000 fee requirement, signed in September 2025, and a wage-weighted lottery system, effective February 2026.

These changes affect how U.S. employers hire high-skilled workers and how foreign professionals plan their careers. With nearly 400,000 H-1B petitions approved in fiscal year 2024, the policy shifts carry significant weight for both companies and workers navigating the system.

The $100,000 fee requirement

On September 19, 2025, President Donald Trump signed an executive order imposing a one-time $100,000 fee on new H-1B visa petitions for workers currently outside the United States. The fee took effect on September 21, 2025, and represents a significant increase from the previous cost of $2,000 to $5,000 per petition.

The proclamation cites program abuse, noting that some employers pay H-1B entry-level workers a "36 percent discount" compared to full-time staff. The White House argues this practice undercuts American workers and harms economic growth in sectors relying on foreign professionals.

Who is exempt

The $100,000 fee does not apply to all visa applications. Workers changing status inside the U.S., such as F-1 to H-1B transitions, are exempt. 

The Department of Homeland Security (DHS) Secretary also has discretion to grant exemptions for petitions deemed in the national interest. That said, this exemption process remains undefined, raising concerns about selective enforcement.

A coalition of 20 state attorneys general, led by California, filed suit challenging the fee. A federal judge upheld the fee in December 2025. U.S. employers and visa sponsorship attorneys should monitor continuing legal developments.

The wage-weighted lottery system

Beyond the fee, the Trump administration has fundamentally changed how U.S. Citizenship and Immigration Services (USCIS) selects H-1B petitions. A DHS final rule effective February 27, 2026, replaces the random lottery with a wage-weighted selection process for the FY 2027 cap season.

Under the new system, H-1B registrations receive weighted entries based on the offered wage relative to the prevailing wage for the occupation and location. Higher-paid workers receive more "entries" in the selection pool, increasing their odds of selection.

USCIS states the rule aims to "better protect American workers" by incentivizing employers to offer competitive wages. According to the Wharton Budget Model, average H-1B compensation is projected to rise from $112,309 to $121,863, an 8.5% increase. Entry-level candidates face approximately 48% lower selection odds than under the previous random H-1B lottery.

Impact on employers and workers

The wage-weighted system creates distinct winners and losers. Tech companies like Amazon, which sponsored over 11,000 H-1B workers in FY 2023, can generally absorb higher labor costs to secure global talent. Smaller US companies and startups face difficult choices: pay Level 3 or 4 wages or watch foreign workers lose lottery odds.

Workers from India continue to dominate H-1B approvals, though models project their share will decrease from 67.6% to 65.5%. The debate has sparked controversy on social media, with Elon Musk defending high-skilled workers while critics argue the program undercuts the U.S. economy. Major IT outsourcing firms are reportedly "debating" whether to continue filing new petitions.

What happens to current H-1B holders?

If you already hold H-1B status, these policy changes affect you differently. The $100,000 fee does not apply to renewals or extensions for workers in the country. The wage-weighted lottery only applies to new cap-subject registrations. Portability rules remain intact, and the 60-day grace period after employment termination continues.

That said, compliance requirements are intensifying. USCIS has increased site visits, and a revised Form I-129 (effective April 2026) requires more detailed disclosures about specialty occupations and wage levels. H-1B visa holders planning international travel should confirm their stamping status before departing.

Green card path and industry impacts

The Trump administration's H-1B changes do not alter the fundamental pathway to permanent residence. Current immigration policies focus on new admissions rather than on workers already in the country pursuing green cards.

Green card pathway

The H-1B remains a dual-intent nonimmigrant visa, meaning you can pursue a green card without jeopardizing your status. EB-2 and EB-3 timelines remain unchanged, and workers with a pending Form I-140 continue to qualify for extensions beyond six years.

Sector impacts

Different industries face varying levels of disruption from the new rules. Here’s a breakdown of the three most popular sectors:

• Technology: Amazon topped the list of H-1B sponsors in FY 2023 with over 11,000 approved workers. High-skilled workers at tech companies, many holding a bachelor's degree or higher, generally qualify for Level 3 or 4 wages, positioning them well under the weighted lottery. At the same time, Texas Governor Abbott recently halted state agency H-1B sponsorship, signaling political headwinds for the program.
• Health care: Nearly 17,000 H-1B visas went to health care workers in fiscal year 2024. With a projected physician shortfall of 86,000 by 2036, hospitals and nonprofits that cannot absorb the $100,000 fee face worsening shortages in rural areas.
• Education: Public universities and K-12 schools are among the largest H-1B sponsors, and 74% of school districts reported hiring difficulties in the 2024-2025 school year. Because these institutions are government or nonprofit entities, they face the same fee burden without the revenue to offset it. International students completing advanced degrees in the U.S. may shift toward alternative pathways, such as the O-1A visa, rather than employer-sponsored H-1B petitions.

Ultimately, the effects of the new rules vary by sector, shaping workforce planning, hiring strategies, and career pathways.

Get expert immigration support

The H-1B visa program now involves coordination across USCIS, the Department of Labor, and DHS. Compliance risks have increased with site visits, changing fees, and wage-level classifications that affect lottery odds.

Lighthouse helps U.S. employers and foreign professionals navigate these changes. Our team provides eligibility diagnostics, petition preparation, wage-level guidance, and legal review. The platform combines case managers with technology built for immigration workflows.

Start your H-1B evaluation today.

Frequently asked questions

What is the new rule for the H-1B visa?

Two major changes took effect under the Trump administration: a $100,000 fee for new H-1B petitions filed for workers outside the U.S. (September 2025) and a wage-weighted lottery replacing random selection (February 2026). Both aim to prioritize higher-paid foreign workers and increase costs for employers.

How will Trump affect the H-1B visa?

The Trump administration's immigration policies raise costs for overseas hires, favor workers at higher wage levels, and increase compliance requirements, including more frequent site visits. Employers filing new petitions face significantly higher expenses, while the lottery changes reduce selection odds for entry-level positions.

What is the H-1B denial rate under Trump?

During Trump's first term, the H-1B denial rate peaked at 15% in fiscal year 2018 before declining to approximately 2% under the Biden administration. USCIS has not yet published denial data for the current term, so tracking current trends is important.

Is the U.S. visa ban in effect in 2026?

No. The H-1B visa program continues to operate under the annual cap of 85,000 (65,000 general plus 20,000 for U.S. advanced degree holders). The new rules change selection criteria and costs but do not eliminate the program. During the 2020 pandemic, Trump temporarily suspended new H-1B visa issuance, but no such ban applies to 2026.

What countries are banned from H-1B?

No country is banned from the H-1B program. Workers from India remain the largest group, comprising approximately 73% of H-1B workers. The new wage-weighted system does not target specific nationalities; selection is based on the wages offered relative to prevailing wage levels.

What is the Trump H-1B salary plan?

The wage-weighted selection system favors workers offered Level 3 and Level 4 wages. Under the new rule, average H-1B compensation is projected to rise approximately $9,554 (8.5%) because higher-paid workers have better lottery odds. Employers seeking better selection chances must offer wages at or above experienced-worker levels for the occupation and location.

What is the H-1B approval rate in 2026?

USCIS has not released final approval data for FY 2026, which began October 1, 2025. During Trump's first term, denial rates reached 15% in FY 2018; under Biden, denial rates dropped to around 2%. Employers should anticipate stricter scrutiny of new petitions under current policies.

Will an H-1B holder ever get a green card?

Yes. The H-1B is a dual-intent visa, allowing holders to pursue permanent residence while maintaining temporary status. The path through EB-2 or EB-3 employment-based categories remains available, though processing times vary by country of birth due to annual per-country limits.