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Navigating the New H-1B Landscape: What You Need to Know

The H-1B nonimmigrant visa program, a critical pathway for skilled foreign workers to contribute to the U.S. economy, is undergoing some significant changes. Recent alerts from USCIS signal new hurdles for both employers seeking talent and individuals hoping to work in the United States. Let's break down the latest developments.

The $100,000 Question: A New Fee for Entry
Perhaps the most impactful change comes from a Presidential Proclamation issued on September 19, 2025.

The Law: This proclamation introduces an additional $100,000 payment that must accompany new H-1B petitions filed at or after 12:01 a.m. EDT on September 21, 2025. This payment is a condition of eligibility for workers trying to enter the U.S.

What This Means For Employers:

Massive Cost Increase: This fee dramatically increases the cost of sponsoring a new H-1B worker from outside the U.S. For many businesses, especially small and medium-sized enterprises (SMEs), startups, non-profits, and educational institutions, this will be prohibitively expensive.
Hiring Decisions Shift: Employers may be forced to prioritize domestic hires or look for talent already residing in the U.S. under different visa categories, even if the ideal candidate is abroad.
Focus on Retention/Transfers: Companies will likely place even greater emphasis on retaining existing H-1B employees and transferring H-1B workers already in the U.S., as these situations are generally exempt from the new fee.
What This Means For People Trying to Enter the U.S.:

Significantly Harder to Get a New H-1B: If you are currently outside the U.S. and hoping to get a new H-1B visa, your chances are now much lower unless your prospective employer is willing and able to pay the substantial additional fee.
Less Demand for Overseas Talent: U.S. companies will be far less likely to sponsor individuals residing abroad for new H-1B visas due to the cost.
Not Retroactive: If you already have an H-1B visa, or your petition was filed before the deadline, this specific fee should not impact you for extensions or transfers.
The H-1B Cap for FY 2026 Has Been Reached
This is an annual occurrence, but always a crucial reminder of the H-1B program's limitations.

The Law: USCIS has announced that it has received enough petitions to meet the congressionally mandated annual limits for both the regular H-1B cap (65,000 visas) and the U.S. advanced degree exemption (20,000 visas) for Fiscal Year 2026.

What This Means For Employers:

No New Cap-Subject Filings Until Next Year: If your company needs to sponsor a new H-1B worker who is subject to the cap, you cannot file a petition until the next lottery opens, typically in April for Fiscal Year 2027 (which would allow a start date of October 1, 2026, at the earliest).
Cap-Exempt Hiring Continues: You can still hire H-1B workers who are already in the U.S. (for transfers or extensions), or for positions at cap-exempt organizations like universities and non-profit research institutions.
What This Means For People Trying to Enter the U.S.:

Longer Wait for New H-1B: If you weren't selected in the FY 2026 lottery, you'll have to wait until next year's lottery (for FY 2027) to try again.
Explore Alternatives: If possible, consider other visa options or pathways that are not subject to the H-1B cap.
Government Shutdowns: Delays & Protections
While not directly about visa policy, this alert addresses the practical impact of federal government operations.

The Law: During a government shutdown, USCIS (which is fee-funded) will generally continue to process H-1B petitions. However, the Department of Labor (DOL), which is government-funded, might cease operations. The key piece of good news here is that USCIS will consider a shutdown an "extraordinary circumstance" for late filings of H-1B extensions of stay or changes of status.

What This Means For Employers:

New Filings Can Be Stalled: You cannot file an H-1B petition without a certified Labor Condition Application (LCA) from the DOL. If the DOL is shut down, you simply cannot file new H-1B petitions, even if USCIS is open.
Flexibility for Existing Workers: If a shutdown causes you to miss a deadline for an extension or change of status for a current employee, USCIS may be understanding and excuse the late filing.
What This Means For People Trying to Enter the U.S. / Already in the U.S.:

Delays for New Petitions: If you are waiting for a new H-1B (even a cap-exempt one) and the DOL is shut down, expect significant delays as your employer cannot get the necessary LCA.
Protection for Extensions: If you are currently in the U.S. on an H-1B and need to extend your status or change to H-1B, and a shutdown prevents timely filing, you have a better chance of your late application being accepted. This provides a crucial safety net.
In Conclusion
The H-1B landscape is becoming increasingly complex and expensive, particularly for those looking to enter the U.S. for the first time. The $100,000 fee acts as a significant barrier, while the perennial cap and potential government disruptions add layers of uncertainty. Employers and prospective H-1B workers alike need to stay informed and plan carefully in this evolving immigration environment.

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