Major H-1B Policy Change: Weighted Selection Process
The Department of Homeland Security (DHS) finalized a rule on December 23, 2025, amending the H-1B selection process. Effective February 27, 2026, the random lottery is replaced by a weighted system favoring higher-skilled and higher-paid beneficiaries, using Department of Labor prevailing wage levels (I-IV) as a proxy for skill and experience.
Under the new system, registrations at Level IV wages receive four entries, Level III three, Level II two, and Level I one—while still allowing opportunities at all wage levels. This aims to better protect U.S. workers and align with congressional intent. The change applies to the FY 2027 H-1B cap registration season. For full details, see the official USCIS announcement.
How the Weighted Lottery Works
- Level IV (highest): 4 entries per registration
- Level III: 3 entries
- Level II: 2 entries
- Level I (entry-level): 1 entry
Employers should prepare job offers and wage documentation carefully for the upcoming March 2026 registration period.
FY 2027 H-1B Cap Registration Timeline
The FY 2027 H-1B cap registration window is expected to open in early March 2026 and close mid-March (exact dates to be announced by USCIS at least 30 days in advance). Selected registrations will allow full petition filing starting April 2026, with approved H-1B status effective October 1, 2026.
The annual cap remains 65,000 regular visas plus 20,000 for U.S. advanced degree holders. Note that FY 2026 registrations (earlier in 2025) saw a reduced pool and higher selection rate compared to prior years.
$100,000 Supplemental Fee for Certain H-1B Petitions
Since September 21, 2025, a Presidential Proclamation requires a $100,000 payment for many new H-1B petitions (primarily for beneficiaries outside the U.S.). This fee faces ongoing legal challenges, including fast-tracked appeals in federal courts.
Exceptions are limited and rare (e.g., national interest cases). The fee significantly impacts hiring costs, especially for smaller employers.
Premium Processing Fee Increases Effective March 2026
USCIS announced inflation-adjusted premium processing fee hikes effective March 1, 2026. Requests postmarked on or after this date must include the new amounts:
- Form I-129 (H-1B and most classifications): $2,965 (up from $2,805)
- Certain other categories (e.g., H-2B/R-1): $1,780
Submit requests before March 1 to avoid higher fees.
USCIS administers the H-1B program and has introduced significant reforms in late 2025 for 2026 implementation.
Additional H-1B Program Notes
The FY 2026 cap was reached in July 2025, with processing continuing for cap-exempt cases (e.g., extensions, higher education employers). Broader immigration policies, including expanded vetting and potential restrictions, continue to shape the H-1B landscape in 2026.
How to Prepare for Upcoming H-1B Changes
Employers should review wage structures, consult immigration counsel, and monitor USCIS for exact registration dates. Foreign professionals should ensure strong qualifications and explore cap-exempt options where possible.
Frequently Asked Questions
When does the weighted H-1B selection process start?
It becomes effective February 27, 2026, and applies to the FY 2027 registration season starting in March 2026.
What is the $100,000 H-1B fee?
A supplemental payment required for certain new H-1B petitions filed since September 21, 2025, with limited exceptions; it’s under legal challenge.
When will FY 2027 H-1B registration open?
Expected in early March 2026, with exact dates announced by USCIS at least 30 days in advance.
Will premium processing fees increase for H-1B?
Yes, effective March 1, 2026, most H-1B premium requests rise to $2,965.
Is the H-1B cap still 85,000?
Yes, 65,000 regular plus 20,000 for U.S. advanced degree holders, unchanged for FY 2027.
Where can I find official H-1B updates?
Check USCIS.gov for announcements, the Federal Register for rules, and consult an immigration attorney for case-specific advice.
