The $100,000 H-1B payment introduced in September 2025 was extended in September 2026 through September 21, 2027, but as of early October 2026 federal courts have blocked agencies from enforcing it while litigation continues.
Separately, DHS has proposed a $103,265 fee on cap-subject H-1B petitions that is not yet final. Whatever the courts decide, the signal to employers is already visible: FY2027 H-1B registrations fell 38.5% year over year. Employers that relied on sponsorship for hard-to-fill technical roles should plan to compete harder for domestic talent.
What Is the $100,000 H-1B Fee?
A presidential proclamation signed September 19, 2025 restricted entry of H-1B workers unless their petition is accompanied by a $100,000 payment. It took effect September 21, 2025 for 12 months.
USCIS guidance in October 2025 clarified that it applies to new petitions for workers outside the United States, while change-of-status petitions for workers already in the US (for example, F-1 students moving to H-1B), extensions, and amendments are generally exempt. National-interest exceptions are possible but have been described as extraordinarily rare.
What Is the Status of the H-1B Fee in October 2026?
| Date | Development |
|---|---|
| Sep 21, 2025 | $100,000 payment requirement takes effect |
| Dec 23, 2025 | US District Court for DC upholds the fee in the Chamber of Commerce case; appeal pending at the DC Circuit |
| Feb 27, 2026 | Wage-weighted H-1B lottery rule takes effect for the FY2027 cap season |
| Jun 8, 2026 | Federal court in Massachusetts vacates the agency policy implementing the fee; First Circuit later declines to pause that ruling |
| Aug 25, 2026 | DHS proposes a separate $103,265 fee on cap-subject H-1B petitions (not final) |
| Sep 18, 2026 | Proclamation extended through September 21, 2027 |
| Sep 30, 2026 | Federal court in Northern California bars agencies from enforcing the fee pending proper rulemaking |
The short version: the policy exists on paper, faces active appeals, and is not currently being enforced. Further appeals are likely.
How Has the H-1B Program Already Changed?
Even with enforcement in flux, the hiring pipeline has shifted:
- Fewer registrations. FY2027 registrations fell to about 211,600 from 343,981 in FY2026, a 38.5% decline, according to USCIS figures reported by SHRM.
- Higher wage levels win. Under the new weighted lottery, registrations get one to four entries depending on wage level, favoring higher-paid roles. Only 17.7% of FY2027 selections were at the lowest wage level.
- Outsourcing firms pulled back. The administration reports the largest IT staffing and outsourcing firms cut combined registrations by 92%.
- More scrutiny. A companion executive order lets agencies weigh an employer’s recent or planned layoffs when reviewing H-1B filings.
Who Is Most Affected?
The roles most exposed are those that historically relied on sponsorship: software engineering, data and AI, specialized engineering, and some healthcare and research positions. Smaller employers are hit hardest because a six-figure per-petition cost, if enforced, is far harder to absorb than for large enterprises. Universities and nonprofit research organizations that are cap-exempt would not pay the proposed $103,265 fee, though the proclamation’s $100,000 payment could still apply to hires from abroad.
What Does This Mean for Recruitment Strategy?
Joveo’s view: whether or not the fee survives in court, employers should treat sponsorship as a scarcer, costlier channel and build domestic pipelines that do not depend on it.
- Widen the domestic net. Distribute technical roles beyond the two or three boards you always use, including niche tech communities, display, and social. See How Do You Reach Cleared or Niche Tech Talent With Display and Social Ads?
- Recruit the students already here. US-educated graduates moving to H-1B through change of status are generally exempt from the payment, and they dominated FY2027 selections. [5][6] Early-career and campus advertising becomes more valuable.
- Hire for skills, not pedigree. Opening requirements to adjacent skills and non-traditional backgrounds expands the domestic pool for hard-to-fill roles.
- Lead with pay. With fewer lower-wage sponsorship options, competitive, visible pay ranges matter more for winning domestic candidates.
- Budget by role difficulty. Shift spend toward requisitions that previously leaned on sponsorship, and measure cost per applicant and quality by source.
- Use your existing talent. Re-engage past applicants and alumni, and develop internal candidates through internal mobility.
Joveo’s programmatic job advertising platform distributes jobs across thousands of sources and optimizes spend in real time toward the channels that deliver qualified applicants, which helps employers find domestic technical talent efficiently when a familiar channel narrows. Learn more in The Ultimate Guide to Programmatic Job Advertising.
Frequently Asked Questions
Is the $100,000 H-1B fee in effect?
As of early October 2026, federal courts have blocked agencies from enforcing it while appeals continue, even though the proclamation was extended through September 21, 2027. Check with counsel for the latest status.
Who has to pay the $100,000 H-1B fee?
Under USCIS guidance, it applies to new H-1B petitions for workers outside the US. Change-of-status petitions for workers already in the US, extensions, and amendments are generally exempt.
What is the proposed $103,265 H-1B fee?
It is a separate DHS proposed rule, published August 25, 2026, that would charge $103,265 on cap-subject H-1B petitions. It is not final.
How many H-1B registrations were there for FY2027?
About 211,600, down 38.5% from 343,981 in FY2026, according to USCIS figures reported by SHRM.
What is the H-1B weighted lottery?
A rule effective February 27, 2026 that gives registrations one to four lottery entries based on the offered wage level, favoring higher-paid positions.
