FY 2027 H-1B registration: Major policy changes and how to prepare
Thursday 29 January 2026
It is time to begin preparing for the upcoming FY 2027 H‑1B Cap Registration period. While the H‑1B program remains an important pathway for retaining talent in the United States and recruiting highly skilled professionals from abroad, recent policy changes under the current administration make advance preparation more critical than ever.
The H‑1B lottery
As background, new H‑1B visas have been allocated through an electronic lottery system for years due to high demand and strict annual limits. Specifically, 65,000 visas are available each year under the regular cap for foreign nationals with at least a bachelor’s degree, and an additional 20,000 visas are reserved for foreign nationals holding US graduate degrees. In recent years, demand has far exceeded supply, with selection rates often below 30%.
Importantly, only employers whose registrations are selected in the lottery may then file an H‑1B petition on behalf of the foreign national, beginning April 1 for an employment start date of October 1.
United States Citizenship and Immigration Service (USCIS) is expected to follow a similar process this year (with an important change to the selection criteria, discussed below). Although the official dates for the FY 2027 registration period have not yet been announced, based on prior years we anticipate that the registration window will open in early March 2026.
H‑1B policy changes
Although the lottery will continue for FY 2027, two major policy changes will significantly alter how H‑1B selections and filings work this year.
1. New wage-level-based weighted lottery system: Beginning February 27, 2026, USCIS will implement a new wage‑based weighted lottery system. Under this framework, USCIS will assign each registration a wage level (Levels I–IV) based on the Department of Labor’s prevailing wage system and weight entries accordingly. Level IV wages are the highest in each category, with Level I wages usually indicative of entry-level wages.
Weighted entries:
- Wage Level IV: 4 entries
- Wage Level III: 3 entries
- Wage Level II: 2 entries
- Wage Level I: 1 entry
The goal of this system is to encourage employers to offer higher wages and prioritize “high‑skilled, high‑wage” positions in the selection process. An employer filing for a Level III wage position will have a greater chance of selection than an employer filing for a Level II position.
2. New $100,000 Fee: On September 19, 2025, President Trump issued a Proclamation creating new restrictions on some H‑1B petitions unless employers pay a $100,000 fee. This Proclamation is in effect from September 21, 2025, to September 20, 2026, with the possibility of extension.
The fee applies to new H‑1B petitions filed on or after September 21, 2025, if one of the following conditions apply:
- The beneficiary is outside the US at the time of filing and does not hold a valid H‑1B visa stamp; or
- The petition requests consular notification, port‑of‑entry notification, or pre‑flight inspection.
Importantly, most employers filing H‑1B petitions for individuals already inside the United States will not be subject to the $100,000 fee. This includes individuals in F‑1 student status, TN status, and other lawful nonimmigrant categories. These individuals may be entered into the H‑1B lottery and, if selected, change status within the United States without triggering the $100,000 fee. Beneficiaries of such petitions will not be subject to the payment if they subsequently depart the United States and apply for a visa.
Multiple federal lawsuits are challenging the $100,000 H-1B fee. In U.S. Chamber of Commerce v. DHS, filed in October 2025 in the D.C. District Court, business groups claim the presidential proclamation goes beyond executive authority, creates an unauthorized fee, and violates the Administrative Procedure Act (APA). A D.C. judge upheld the fee in December 2025, but that decision is now being appealed to the D.C. Circuit. Two other cases remain pending: Global Nurse Force v. Trump, filed October 3, 2025, in Northern California by healthcare groups, unions, religious organizations, and employers, and State of California et al. v. Noem, filed December 12, 2025, in the District of Massachusetts by approximately 20 states led by California. These lawsuits argue the fee is unlawful and harms important sectors such as healthcare, education, and the broader economy, and they seek to block enforcement as the H-1B cap season approaches. We will continue to monitor these lawsuits and provide updates as developments occur.
Strategic considerations for employers
Given the substantial changes to both the filing fee structure and the selection process, we recommend that employers work closely with US immigration counsel to complete the following preparatory steps:
- identify H‑1B candidates early;
- review wage levels for all potential H‑1B roles to understand how they will be weighted in the lottery;
- plan to enter current US‑based foreign nationals already in nonimmigrant status wherever possible to avoid the $100,000 fee; and
- evaluate alternative visa pathways (E‑1/E‑2, L‑1, O‑1, etc.) for candidates who may not be competitive under the new system.
We are closely monitoring ongoing regulatory developments and will continue to update our clients as new guidance becomes available.
If you are considering filing an H‑1B petition this year, or if you have questions about how these new rules may impact your hiring strategy, please contact your Laura Devine Immigration attorney or email enquiries@lauradevine.com.
Christi Jackson
Partner, Head of the US Practice, Technology and Innovation
Khensani Mathebula
Attorney
