The H-1B Visa in 2026: Lottery, the $100,000 Fee, and New Wage Rules

The basics that haven't changed

The H-1B lets US employers hire foreign professionals in specialty occupations — roles that normally require at least a bachelor's degree (software engineering, data science, accounting, architecture, and similar). Key constants:

• Employer-sponsored. You cannot self-petition. A US employer files on your behalf.
• Annual cap: 85,000. That's 65,000 regular slots plus 20,000 reserved for people with a US master's degree or higher (the "master's cap").
• Electronic registration, then lottery. Employers register beneficiaries online (registration fee around $215); USCIS runs a random selection, and only selected registrations can file full petitions.
• Six-year maximum, in three-year increments — with extensions beyond six years available if you have an approved immigrant petition (I-140) or a long-pending green card case.
• Dual intent. Unlike most temporary visas, the H-1B allows you to pursue a green card while holding the status. This is a big deal.

Cap-exempt employers — universities, nonprofit research organizations, and government research institutions — can file H-1B petitions any time, without the lottery or the cap. If academia or research is an option for you, this bypasses most of the chaos below.

The $100,000 fee: what it actually covers

On September 19, 2025, a Presidential Proclamation imposed a $100,000 payment on certain new H-1B petitions. The details, per the State Department's H-1B FAQ and USCIS guidance:

• Applies to: new H-1B petitions filed on or after 12:01 a.m. ET, September 21, 2025 — including petitions from the FY2027 lottery (March 2026 registration). It targets petitions for beneficiaries outside the United States and petitions requesting consular processing, port-of-entry notification, or pre-flight inspection.
• Does NOT apply to: petitions filed before September 21, 2025; previously issued H-1B visas; renewals, extensions, and amendments; or petitions requesting a change of status for someone already in the US in valid status who remains eligible for in-country adjudication.
• One-time, paid via pay.gov before filing, with proof submitted alongside the petition. National interest exceptions are possible but narrow.
• Duration: 12 months, through September 21, 2026, unless extended. A government review is expected around spring 2026 on whether to continue it.

The practical effect: if you're outside the US and need consular processing, your employer faces a $100,000 decision. If you're already in the US (say, on F-1 OPT) changing to H-1B status without leaving, the fee generally doesn't apply. This has made in-country status strategy — staying in valid status and changing status domestically — enormously valuable.

The wage-weighted lottery (new for the 2026 season)

Separately, DHS finalized a rule on December 29, 2025 (effective February 27, 2026) replacing the pure-random lottery with a wage-level-weighted selection for the FY2027 cap season:

• Each registration gets 1 to 4 lottery entries based on the offered wage relative to the prevailing wage for the occupation and area.
• Higher-wage offers get proportionally better odds. A Level IV wage registration has roughly four times the selection probability of a Level I registration.
• The registration window for the 2026 season ran March 4–19, 2026.

Combined with the $100,000 fee, the message is unmistakable: the system now strongly favours higher-paid, clearly specialized roles at employers willing to pay for them.

Timeline for the 2026 cap season

Miss the March window and you're generally waiting a full year — unless a cap-exempt employer hires you.

Costs and the employer's calculus

Even before the proclamation, H-1B sponsorship cost employers several thousand dollars in USCIS fees (registration, I-129 filing, fraud prevention fee, training fee, plus optional $2,805 premium processing). The $100,000 payment dwarfs all of that for affected cases. Expect employers to:

• Prioritize candidates already in the US (no fee via change of status).
• Favour higher-wage offers (better lottery odds under the weighted system).
• Lean on cap-exempt affiliates or consider alternative visas (O-1, L-1, TN for Canadians/Mexicans) where the profile fits.

For Canadians specifically: the TN visa under USMCA remains a dramatically simpler path for qualifying professions (engineers, accountants, scientists, and others) — no lottery, no cap, adjudicated at the border. It doesn't allow dual intent, but for many it's the pragmatic choice.

The prevailing wage: the number under everything

Almost every H-1B figure connects to one number: the prevailing wage for your occupation in your work location, as determined by the Department of Labor. Your employer must pay you at least the prevailing wage (or the actual wage paid to similar workers at the company, whichever is higher) — this is the anti-undercutting protection at the heart of the program.

In 2026 the prevailing wage matters more than ever, because the weighted lottery converts it directly into odds: DOL wage Level I gets 1 entry, Level II gets 2, Level III gets 3, Level IV gets 4. A job offer at Level IV doesn't just pay more — it roughly quadruples your selection probability versus a Level I offer. When evaluating offers, ask the employer which wage level the role maps to. Two offers at the same salary can carry very different lottery odds if they're in different metro areas (prevailing wages vary sharply by location — a $120,000 salary is Level IV in some cities and Level II in San Francisco or New York).