Important: H-1B Lottery Changes 2026
What Are the H-1B Lottery Changes?
The traditional H-1B visa lottery, which randomly selected eligible registrations when demand exceeded the annual 85,000 cap, has been replaced with a weighted wage-based selection system effective for the FY 2027 cap season (registrations submitted March 2026). This reform aims to prioritize highly skilled and higher-paid workers for H-1B visas and reduce alleged systematic misuse of the lottery by high-volume, low-wage filers.
Under the new approach:
- USCIS will assign multiple “lottery entries” based on the wage level associated with the job offer.
- Higher prevailing wages mean more entries and increased chance of selection.
- Wage Levels I–IV (from lowest to highest) receive increasing numbers of entries in the weighted lottery.
This transition responds to federal efforts to align H-1B allocations with both market-based compensation and Congressional intent to admit highly specialized talent.
How the H-1B Lottery Wage Levels Work
USCIS’s wage-based selection will assign entries in the lottery based on Department of OEWS prevailing wage levels:
| Wage Level | Description | Lottery Entries |
| Level I | Entry-level wage | 1 |
| Level II | Experienced professional | 2 |
| Level III | Skilled, established professionals | 3 |
| Level IV | Highest-paying, most specialized | 4 |
Why this matters:
A Level IV job receives four times the number of weighted lottery entries as a Level I job. In practical terms, higher wages no longer signal simply better pay – they materially improve the chance of H-1B selection.
Employer guidance: When determining the wage level for registration, employers should carefully evaluate total fixed compensation, not just base salary. Certain guaranteed bonuses, fixed incentives, and nondiscretionary benefits may be included in wage calculations if they are clearly defined, regularly paid, and documented. Properly structuring and reporting compensation can legitimately elevate a role into a higher wage level, which may directly impact lottery odds. Because misclassification or overstatement carries compliance risk, wage determinations should be reviewed with immigration counsel before registration.
Presidential Proclamation on Restriction on Entry of Certain Nonimmigrant Workers
On September 19, 2025, the President issued a major policy change through the Presidential Proclamation on Restriction on Entry of Certain Nonimmigrant Workers, which must be understood alongside the lottery reforms. The Proclamation requires a $100,000 payment for covered H-1B petitions filed on or after September 21, 2025.
The Proclamation’s stated purposes include:
- Prioritizing high-skilled, high-wage employment.
- Restricting entry of H-1B workers unless the payment condition is satisfied.
- Addressing systemic concerns about misuse of the H-1B program.
In practice, this means most new H-1B petitions (e.g., cap-subject cases filed after the effective date) must include evidence of payment of the $100,000 fee when submitted to USCIS for an H-1B employee who is outside the U.S. Petitions filed without this payment or that fail to demonstrate an exemption will be denied.
Who Is Exempt from the $100,000 Fee
After the proclamation USCIS and legal experts clarified the narrow scope of application of this new fee:
Exemptions include:
1. Petitions filed before the effective date
Any cap-subject H-1B petition filed and received by USCIS prior to 12:01 a.m. ET on September 21, 2025 is not subject to the $100,000 payment.
2. Current H-1B visa holders
Workers who already have a valid H-1B visa (even if abroad) or extensions of status remain exempt from this fee.
3. Extensions, amendments, and change of status cases filed for potential H-1B workers who are currently in status in the U.S.
USCIS has clarified that the $100,000 payment does not apply to petitions that request a change of status for workers already physically present in the U.S. in another status — for example, an F-1 STEM OPT student transitioning to H-1B — as long as the initial petition is a change of status.
This is a critical employer consideration: an H-1B beneficiary already in the U.S. on F-1 OPT (or another valid nonimmigrant status) who is eligible for change of status is not subject to the $100,000 fee.
4. National interest or other narrow exceptions
The Secretary of Homeland Security may grant exemptions in national interest or other specified circumstances on a case-by-case basis — though these are limited and discretionary.
Bottom line:
Most employers will only face the $100,000 payment for new cap-subject H-1B petitions filed after the Proclamation’s effective date where the worker is outside the U.S. and requires consular processing.
Putting It All Together: How H-1B Lottery Changes Impact Employers
1. H-1B Selection Strategy Is Now About Salary
- Employers hiring for roles at higher wage levels (III or IV) are more likely to secure H-1B visas due to multiple weighted entries.
- Entry-level positions (Level I) can still be filed but face lower odds in the cap selection.
This shift essentially transforms salary from a compensation choice into a lottery strategy. Employers should carefully assess wage levels and prevailing wage data before H-1B registration.
2. Cost Planning and the $100,000 Fee
If the potential H-1B worker is outside the U.S. (offshore) employers must budget not only the normal filing, legal, and compliance costs but also the potential $100,000 fee for applicable H-1B petitions. For companies that historically hire workers abroad with consular processing, this represents a significant, additional expense.
Failing to include payment proof or a valid exemption in the filing will result in denial, which could jeopardize critical talent acquisition.
3. Strategic Advantage for Onshore Candidates
Because the $100,000 fee does not apply to change of status petitions for beneficiaries already in the U.S. (such as F-1 OPT students), employers who can target onshore candidates may enjoy a competitive and financial advantage in the H-1B process.
This highlights the importance of workforce mobility planning — especially for employers prioritizing international talent who may already be present in the U.S. or able to arrive in a visa-exempt status and adjust.
Frequently Asked Questions
What is the new H-1B lottery system?
Beginning on February 27, 2027, the H-1B lottery will apply a wage-based weighted selection process, giving employers a better chance of selection if the role’s salary meets higher wage levels.
Do all H-1B petitions require the $100,000 fee?
No. The fee applies mainly to new cap-subject petitions for workers outside the U.S. filed after Sept. 21, 2025. Exemptions include existing H-1B holders, petitions filed before the effective date, and change of status cases for beneficiaries already in the U.S.
Can we avoid the $100,000 payment by filing change of status?
Yes — if the beneficiary is eligible (e.g., an F-1 student on OPT), and the petition is properly filed as a change of status.
Does the wage-based selection remove entry-level candidates entirely?
No. Entry-level positions (Wage Level I) remain eligible for cap selection but with fewer entries and lower statistical odds.
Are renewals and extensions subject to the $100,000 fee?
No — extensions, amendments, and renewals for workers already in H-1B status are exempt.
How BHLG Can Help With H-1B Lottery Changes
The H-1B landscape has shifted dramatically – but employers can still succeed with proactive planning.
At BHLG, we help you:
- Strategize wage levels to maximize selection odds
- Assess exemptions to the $100,000 fee
- Navigate complex change of status planning for onshore candidates
- Prepare compliant H-1B registrations and petitions
