H-1B in 2026: Lottery, $100K Fee, and the New Final Rule

The H-1B remains the primary pathway for skilled foreign workers to work in the United States, but the program’s structure in 2026 is substantially different from what it was two years ago. The combination of the H-1B Modernization Final Rule, effective January 17, 2025, and the presidential proclamation of September 19, 2025, which introduced a $100,000 supplemental fee for new petitions, has reshaped both the economics and the selection logic of the visa.

This guide consolidates the rules currently applicable to H-1B registration, petition scrutiny, and alternatives for employers and candidates navigating the program under the new regulatory framework.

Current Registration Timeline

The H-1B cycle continues to operate within a single window. For fiscal year 2027 (FY2027), electronic registration opened on March 7, 2026 and closed on March 24, 2026, through the myUSCIS portal, at a fee of $215 per beneficiary.

USCIS notified selected employers in the last week of March 2026. Petitions may be filed between April 1 and June 30, 2026, with an employment start date no earlier than October 1, 2026.

The next cycle (FY2028) is expected to open in March 2027, maintaining the same statutory cap of 65,000 regular slots plus 20,000 reserved for beneficiaries with a master’s or doctoral degree obtained in the United States.

What the 2025 Final Rule Changed

Published in the Federal Register on December 18, 2024 and effective January 17, 2025, the modernization rule codified definitions that previously existed only in policy memos and expanded operational flexibilities.

Specialty Occupation

The Final Rule rewrote the concept of specialty occupation. The position must be an occupation that normally requires the practical application of highly specialized knowledge, and the bachelor’s degree or higher must be directly related to the job duties. The regulation explicitly states that generic positions, roles with vague requirements, or positions where several unrelated fields are acceptable fall outside the scope.

Mandatory I-129 Edition

Only the January 17, 2025 edition of Form I-129 is accepted. Earlier editions are rejected upon receipt with no right to a free refile.

Cooperation with Site Visits

USCIS may conduct in-person visits to workplaces. Refusal by the employer, the beneficiary, or third parties (clients in placement arrangements) may lead to denial or revocation of the petition.

Beneficiary-Centric Process

Since the FY2025 cycle and now consolidated by the Final Rule, selection is per beneficiary, not per registration. Each foreign national enters the lottery only once, regardless of how many employers register them.

In practice, this model eliminated the strategic use of multiple employers to inflate selection odds. Beneficiaries with more than one job offer enter with the same probability as those with a single offer, and if selected, they choose which employer will file the I-129 petition.

The 50% Rule: Founders and Entrepreneurs

The Final Rule opened a previously unavailable route: foreign entrepreneurs who hold more than 50% ownership in a U.S. company can be both the beneficiary and the authorized representative of the petitioning employer.

There are conditions. The company must be a genuine legal entity with verifiable operations, separate accounts, and specific duties for the beneficiary that are distinct from those of an owner or board member. The initial petition is limited to 18 months; the first extension is also limited to 18 months; after that, the standard period of up to 3 years applies.

Fees in Effect in 2026

The total cost of the H-1B has increased on three fronts since 2024.

• Registration: $215 per beneficiary, paid by the employer at the time of electronic registration.
• I-129 base fee: $780 (paper) or $730 (online) per the USCIS fee schedule of April 2024.
• Asylum Program Fee: $600 for employers with more than 25 FTEs, $300 for small employers (up to 25 FTEs), and $0 for qualifying nonprofits.
• ACWIA training fee: $1,500 (more than 25 FTEs) or $750 (up to 25 FTEs), applicable to initial petitions and the first extension.
• Anti-fraud fee: $500 for initial petitions and transfers.
• Premium Processing: $2,805 for a response within 15 business days.
• Public Law 114-113 fee: $4,000 for employers with 50 or more employees, more than 50% of whom are in H-1B or L-1 status.

The $100,000 Supplemental Fee

The presidential proclamation of September 19, 2025 established a $100,000 supplemental fee for initial H-1B petitions whose beneficiaries are outside the United States at the time of filing. The measure does not apply to renewals, transfers, or change-of-status cases for individuals already on U.S. soil under another valid visa. Subsequent USCIS clarifications confirmed the restricted application to new-from-abroad cases.

The practical effect is a risk reallocation to the employer, which must decide whether to absorb the fee, pass part of it on to the candidate (subject to DOL rules on wage deductions), or prioritize candidates already in the country on F-1 OPT, L-2, or TN status.

Heightened Scrutiny and RFEs

Petitions are being approved, but with a high volume of Requests for Evidence. The most frequent lines of questioning involve:

• Proof that the position is genuinely a specialty occupation, not a generic role tailored to the candidate’s profile.
• Documentation of the employer-employee relationship in third-party placement arrangements, including complete itineraries, client contracts, and evidence of direct supervision.
• Compliance with the Labor Condition Application (LCA), including the appropriate wage level for the job description and metropolitan area.
• Validation of foreign degrees and their alignment with the field of work.

Experienced employers have responded by preparing more robust filing packages from the outset, anticipating RFE points rather than waiting for the formal request.

Alternatives and Strategy

For candidates who were not selected or are ineligible under the new cost model, parallel paths are worth considering: O-1 for profiles with extraordinary ability, L-1 for intracompany transfers, EB-2 NIW for self-sponsorship, TN for eligible Canadians and Mexicans, and E-3 for Australians. The H-1B remains the broadest entry point, but in 2026 it is no longer the only rational choice for most highly skilled professionals.

Victoria Harper

Editor-in-Chief

Meet the author

Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.