UBCNews - Business - H-1B $100K Payment Policy: What's New, Who It Affects & How to Respond

Episode Date: February 28, 2026

Welcome back, everyone. Today we're tackling something that's causing a lot of confusion in the immigration world—the so-called $100,000 H-1B program. What exactly is this, and who does it actually affect? TFH Transformations LLC City: St. Petersburg Address: 7901 4th Street North Website: https://careerproguider.com

Welcome back, everyone. Today we're tackling something that's causing a lot of confusion in the immigration world, the so-called $100,000 H-1B program. What exactly is this, and who does it actually affect? Great question. So first off, this is an entry restriction tied to a presidential proclamation. Starting September 21st, 2025, certain new H-1B petitions require a one-time $100,000 payment, or an extraordinarily rare national interest exception.

This primarily applies to petitions filed for beneficiaries who are outside the United States and don't have a valid H-1B visa or for those in the U.S. whose petitions request consular processing or port of entry notification. Okay, so it's not an annual fee and it's not hitting everyone. That's important to clarify because there's been a ton of misinformation floating around.

Exactly. And here's the thing. The restriction took effect on September 21st, 2025, and is scheduled to expire 12 months later unless extended. Meanwhile, litigation is ongoing, with several lawsuits challenging the fee working their way through the court system. Employers are working through real uncertainty as initial rulings are anticipated. Right? And layered on top of that, there's the new wage-weighted lottery system for the H-1B cap, which went into effect February 27th, 2026. How does that change the game?

So under the old system, it was purely random. Now your registration gets multiple entries based on the Department of Labor's wage levels. Level free positions get four entries. Level three gets three. Level two gets two and level one gets one. Higher wages mean better odds. It's a two-lever system now, cost and odds.

Hmm, interesting. So employers have to think about salary strategy differently, beyond compliance alone. Definitely. And the focus goes beyond offering more money. You have to make sure the wage level aligns with the occupation code and the actual job duties. Misclassification is a real risk now, especially with Project Firewall ramping up enforcement. I remember working with a client last year who thought they could just bump the salary without checking the job classification. they ended up having to completely rework their petition. Let's talk about Project Firewall for a second. What should employers be worried about? Project Firewall is the Department of Labor's New Enforcement Initiative.

They're increasing investigations, looking at things like wage violations, worker displacement, misrepresentation of job duties and retaliation. Penalties include back wages, civil money penalties, and even debarment from the H-1B program. They're also coordinating with DOJ and the EEOC, so it's a multi-agency effort. In other words, they're serious about compliance now. Really serious. That enforcement focus really sets up our next piece, the fee stack employers face. But first, a quick word from our sponsor.

Working through H-1B changes can feel overwhelming, but you don't have to do it alone. Career Pro Guider offers career consulting and development programs to help you advise. or change your career. From resume writing and LinkedIn profile development to interview preparation and job search strategies, professional coaches provide personalized approaches to make you stand out. Take the next step at careerproguider.com. Picking up on that enforcement focus, how should employers handle the complete fee stack when they're budgeting for a new hire? So let's walk through it. You've got the $215 registration fee per beneficiary, then the form I-100, $1.229 base fee, $700 anator for most employers, $460 for small employers and non-profits.

Add the asylum program fee, which is $600 or $300 for small employers. There's also the ACWIA training fee, either $1,500 or $750, depending on your company size. The fraud prevention fee is $500. And if you want premium processing, that's now $2965 as of March 1, 20266. for certain new entry cases, you layer on that $100,000 payment. It's like building a tower of fees, basically. Wow, that adds up fast. And employers can't pass those costs to the worker, right? Correct. DOL guidance is really strict here. Employers can't shift H-1B-related costs to workers if it drops their pay below the required wage. Things like the ACWIA fee and certain attorney or premium

processing costs are considered employer business expenses. trying to get around that with repayment agreements or deductions is a compliance risk. That's critical. So to everyone listening, if you're sponsoring, you need to audit your wage documentation and work site details now, not later. Have you considered how these changes might affect your hiring timeline? Absolutely. And remember, employers must pay at least the higher of the actual wage or the prevailing wage. USCIS will be closely monitoring discrepancies, especially with the wage-weighted citizens.

system in play. Any inconsistency between your registration, your LCA, and the actual job can trigger an investigation? Let's clear up some myths. Is the $10,000 a salary requirement? No. It's a payment condition tied to entry restrictions for certain new petitions. The wage-weighted lottery is separate. That's about selection odds based on offered wages, but there's still no single nationwide minimum salary rule. And does the $100,000 apply to extensions or amendments for people already in the U.S.?

The proclamation focuses on entry restrictions, so it primarily affects new beneficiaries outside the U.S. The $100,000 payment generally does not apply to renewals, extensions, amendments, or changes of status for workers already inside the U.S. But every case is guidance dependent, so if you're unsure, consult with an immigration attorney. Right, makes sense.

And what about the practical impact? Small employers, nonprofits, universities, and rural health care are hit hardest. A $100,000 fee can be prohibitive for startups or clinics with thin margins. There's concern this will concentrate talent in larger tech companies that can afford both the fee and higher wages. Rural hospitals, for example, rely heavily on international medical graduates, and this fee could make routine hiring financially unworkable. That's a real workforce issue. How should candidates and employers adapt their strategies?

Employers should strengthen in-country pipelines. Candidates already in the U.S. on other work-authorized pathways, for instance. For CAPS. Subject cases, think strategically about wage offers to maximize lottery odds. Candidates should focus on roles that offer higher wage levels and work with employers who understand the new system. And everyone should stay updated on litigation because the policy environment could shift quickly. One last thing, the FY 2027 cap registration period runs from March 4 to March 19th,

2026. That's coming up fast. Right. Employers need to have their organizational accounts ready, register each beneficiary electronically, and pay that $250 fee. U.S.CIS expects to notify selected registrants by March 31st, 2026. Only selected registrations can proceed to file the cap subject form I-129 petition. So the window is tight. If you're planning to sponsor, the time to prepare is now. Are you confident your documentation is audit ready?

That's the key question, because with Project Firewall and the wage-weighted system, the compliance stakes are higher than they've ever been. Really, the stakes couldn't be higher right now. Thanks for breaking all of this down. The H-1B environment is shifting fast and understanding these changes, both the $100,000 payment policy and the wage-weighted lottery can make or break your hiring strategy. We'll keep you updated as the situation evolves.