H-1B Visa 2026 Update: The $100,000 Fee Court Battle, the New Wage-Weighted Lottery and What Applicants Should Do Now

Quick answer: As of October 2026, the controversial $100,000 H-1B fee, first imposed by presidential proclamation in September 2025, was extended on 18 September 2026 through 21 September 2027, but federal courts have blocked it. A Massachusetts court vacated the policy implementing the fee in June 2026, the First Circuit declined to pause that ruling in July, and a California court vacated and enjoined the policies again on 30 September 2026. USCIS has said it will comply with the court orders, so the fee is not currently being collected. Separately, the H-1B lottery now uses a wage-weighted selection that gives higher-paid registrations more entries.

The H-1B is the main US work visa for professionals in technology, engineering, healthcare, finance and research, and Indian nationals have historically received the large majority of H-1B approvals. The rules changed more in 2025 and 2026 than in the previous decade, with litigation still ongoing. This guide sets out what is known as of October 2026, so applicants and employers can plan, and what to keep watching.

H-1B Rules at a Glance (as of October 2026)

The $100,000 Fee: Timeline

• 19 September 2025: a presidential proclamation imposes a $100,000 payment on certain new H-1B petitions, effective from 21 September 2025.
• 23 December 2025: a federal court in Washington, D.C. upholds the proclamation in a challenge brought by the US Chamber of Commerce. That case went to appeal.
• 8 June 2026: the federal court in Massachusetts declares the agency policy implementing the fee unlawful and vacates it.
• 24 July 2026: the First Circuit denies the government’s request to pause the Massachusetts ruling while it appeals.
• August 2026: DHS publishes a proposed rule for a $103,265 fee on new cap-subject H-1B workers.
• 18 September 2026: a new proclamation extends the fee policy through 21 September 2027.
• 30 September 2026: a federal court in California vacates the agency policies and enjoins enforcement of both proclamations until proper rulemaking is completed.

Litigation is continuing, and higher courts could change the position. Check USCIS and your employer’s immigration counsel before any filing.

The Wage-Weighted Lottery

For years, H-1B cap selection was a purely random lottery. Under the new design, each registration gets between 1 and 4 entries depending on the prevailing wage level of the offered job: higher wage levels get more entries. The effect is to raise the odds for higher-paid, more senior candidates and reduce them for entry-level offers. Economists at the Penn Wharton Budget Model estimate that most of the increase in average selected pay comes from this wage weighting. The Department of Labor has also proposed raising prevailing wage levels, which would push required salaries higher if adopted.

What This Means for Applicants

• Salary level matters more than ever. An offer at a higher wage level substantially improves lottery odds.
• Former international students in the US who change status inside the country were exempt from the fee even when it applied, and have historically had strong selection rates.
• Entry-level candidates abroad face the toughest odds and the most uncertainty.
• Alternatives deserve a look: O-1 for people with extraordinary ability, L-1 for intra-company transfers, and country-specific options such as TN (Canada and Mexico) or E-3 (Australia).
• Other countries are actively recruiting the same talent. Canada, Germany, the UK, the Netherlands and Australia all have strong skilled-worker routes.

The Fine Print

• This is a fast-moving legal situation. Court rulings and new rules can change the position within weeks.
• Never pay a recruiter for an H-1B. Employers are responsible for petition costs, and charging workers for certain H-1B fees is prohibited.
• Beware of “guaranteed H-1B” schemes. Selection is by lottery and no one can guarantee it.

Is the H-1B Still Worth Pursuing?

For well-paid professionals, especially those already studying or working in the US, yes. The wage-weighted lottery actually improves their odds. For entry-level candidates abroad, the combination of a weighted lottery, uncertain fees and green card backlogs makes it sensible to pursue alternatives in parallel. Keep options open, watch the litigation, and work with an experienced immigration attorney through your employer.

Frequently Asked Questions

Is the $100,000 H-1B fee being charged right now?

As of October 2026, no. Federal courts have vacated the implementing policies, and USCIS has said it will comply. Litigation is continuing.

Was the fee extended?

Yes. A proclamation on 18 September 2026 extended it through 21 September 2027, but that extension was also blocked by a court on 30 September 2026.

How does the new H-1B lottery work?

Registrations receive 1 to 4 entries depending on the prevailing wage level, so higher-paid offers have better odds.

How many H-1B visas are available each year?

85,000 under the annual cap: 65,000 regular plus 20,000 for holders of US advanced degrees.

Did the fee apply to students switching from F-1 to H-1B inside the US?

No. Petitions for workers already in the US changing or extending status were exempt.

Official and expert sources: US Citizenship and Immigration Services at uscis.gov; Penn Wharton Budget Model analysis (August 2026); Yale Office of International Students and Scholars guidance (September 2026). This article is general information, not legal advice. This site is not affiliated with the US government and never charges any fee for job information.