$100K H-1B Fee, FY2027 Lottery & Project Firewall – What It Means for You
- Matthew Kolodziej
- 4 days ago
- 3 min read
Two Fridays ago, the White House published President Trump’s proclamation on the new $100,000 H-1B entry fee. The announcement came suddenly and immediately sparked widespread concern: many employers worried about the impact on their H-1B employees, while H-1B workers abroad at the time rushed back to the U.S. Meanwhile, the immigration community—including our team—moved quickly to analyze and share initial insights through social media and newsletters.
Now that more information is available, we are sharing the latest updates to help bring clarity to this fast-moving situation.
In addition to the $100K fee, the newly published proposed FY2027 H-1B lottery rule is now open for public comment, and employers should also take note of Project Firewall, which signals increased compliance audits.
$100K H-1B Surcharge
Effective Date: Applies to petitions filed on or after September 21, 2025 (12:01 a.m. ET).
Not Retroactive: Petitions filed before Sept. 21 and existing H-1B approvals are not affected.
Travel Rules: Current H-1B holders with valid visas/approvals can continue normal travel.
✅ Who Is Definitely Affected
First-time cap-exempt petitions filed on/after Sept. 21 if the worker is abroad
Next year’s H-1B lottery recipients who are abroad
❌ Who Is Not Affected
Current H-1B holders (inside or outside the U.S.)
All future H-1B petitions relying on an approved H-1B status in the U.S. without travel
Pending petitions, RFEs, or re-files tied to petitions filed in the U.S. before Sept. 21
Certain national interest exemptions (e.g., doctors or other foreign nationals who benefit the U.S., standard to be clarified).
⚠️ Gray Areas Awaiting DHS/USCIS Guidance
This includes new petitions filed in the U.S. on or after September 21 that later involve travel, including change-of-status filings, transfers, extensions, amendments, concurrent, and recapture cases. Additionally, potential legal challenges could affect how these provisions are ultimately implemented.
Proposed FY2027 H-1B Lottery Rule
On September 24, 2025, USCIS published a proposed change to the H-1B lottery for FY2027. The key feature is a weighted system based on wage levels, which gives higher-paid positions much better odds of selection while reducing the chance for entry-level and mid-career wage levels.
Wage Level | Entries | Approx. Chance |
|---|---|---|
Level I | 1 | ～15% |
Level II | 2 | ～31% |
Level III | 3 | ～46% |
Level IV | 4 | ～61% |
(Source: Federal Register)
At this point, it is difficult to predict how the labor market will respond if both the $100,000 fee and this new lottery system are implemented. The total number of registrations submitted, as well as potential employer decisions to raise wage levels for certain employees to improve their chances of selection, could significantly influence actual outcomes and selection probabilities.
This proposal is not yet final and is currently open for public comment. These fees and wage rules may be particularly prejudicial to small and mid-sized employers and younger foreign skilled workers earlier in their careers and we encourage stakeholders—including employers—to submit feedback during this period. The rule may also face legal challenges before it is implemented, making ongoing monitoring and engagement essential for those affected.
If you would like to discuss visa options, alternatives for your foreign employees, or strategic planning in light of these changes, you can click here to schedule a one-on-one consultation.
Project Firewall: Enhanced H-1B Compliance
On September 25, 2025, the Department of Labor announced Project Firewall, signaling an increase in H-1B compliance audits. Employers can expect closer scrutiny of wages, job classifications, and overall adherence to H-1B regulations. We recommend reviewing internal H-1B policies, updating public access files, auditing I-9 forms, and ensuring all documentation is complete and accurate to stay prepared for potential audits or site visits by immigration authorities
If you would like our team to conduct a comprehensive immigration compliance review to help mitigate risks and stay ahead of regulatory changes, please click here to contact us.
We understand this is a challenging time for employers and employees navigating these changes. Our team is here to provide guidance and support, helping you stay informed, compliant, and prepared for the evolving H-1B landscape.