18 February 2026
What Employers and Foreign Professionals Need to Know
Significant changes to the H-1B visa process are coming for Fiscal Year 2027. Employers, startups, and foreign professionals must prepare now to avoid costly mistakes and unexpected delays.
At VKM Law Group, immigration attorneys in New Jersey, we are actively advising companies and individuals on how these new rules impact H-1B cap registrations, change-of-status filings, and employment-based immigration strategy.
Below is a breakdown of the most important developments.
- New $100,000 H-1B Proclamation Fee & National Interest Exception (NIE)
Under a September 19, 2025 Presidential Proclamation, certain H-1B petitions now require a $100,000 government fee, unless a National Interest Exception (NIE) is approved.
Who Must Pay the $100,000 Fee?
The fee applies when the sponsored H-1B beneficiary:
- Is outside the United States, AND
- Does not have a valid visa (other than B-1/B-2 or ESTA).
Who Is Exempt from the $100,000 Fee?
The fee does NOT apply to:
- Change of status petitions (e.g., F-1 to H-1B, including STEM OPT to H-1B)
- Change of employer petitions
- H-1B amendments
Important Considerations
- The $100,000 fee is currently being challenged in litigation but remains in effect.
- There is no guaranteed timeline for USCIS to adjudicate National Interest Exception requests.
- A pending NIE decision could delay or prevent timely H-1B cap filing after lottery selection.
- International travel could trigger unexpected compliance issues.
Employers and foreign nationals should consult an experienced immigration attorney before making travel plans or submitting registrations.
- Weighted, Wage-Level Based H-1B Lottery Selection (FY 2027)
In a major shift from the traditional random lottery system, the Department of Homeland Security has implemented a weighted H-1B selection process beginning with the FY 2027 cap season.
How the New H-1B Lottery Works
USCIS will now weight lottery entries based on the offered wage level under the Department of Labor’s four-tier wage system:
- Level I (Entry-Level) → 1 lottery entry
- Level II (Somewhat Experienced) → 2 lottery entries
- Level III (Mid-Level) → 3 lottery entries
- Level IV (Highly Experienced) → 4 lottery entries
Impact on Employers
This new rule:
- Favors higher-paying positions
- Reduces selection odds for entry-level candidates
- Disadvantages startups and small businesses
- Applies to both regular cap and advanced degree exemption cases
For employers hiring F-1 OPT or STEM OPT candidates, early strategic planning is now more critical than ever.
Additional Uncertainty
The Department of Labor has proposed changes to how H-1B and PERM prevailing wages are calculated. The rule is currently under federal review, and its potential impact on the FY 2027 H-1B lottery remains unclear.
This evolving landscape makes proactive legal guidance essential.
- “Adjudicative Hold” for Travel-Ban Countries
USCIS has expanded enforcement policies related to countries listed in recent travel bans.
What Is an “Adjudicative Hold”?
USCIS will accept H-1B petitions but place them on hold if the beneficiary:
- Was born in, or
- Is a citizen of, one of 39 designated countries, OR
- Holds certain Palestinian Authority travel documents.
Importantly, the policy may apply even if the individual holds dual citizenship.
While USCIS may issue receipts, Requests for Evidence (RFEs), or Notices of Intent to Deny (NOIDs), it may not issue final decisions during the hold.
This creates significant uncertainty for employers and employees planning workforce onboarding or international relocation.
Why Employers Need Strategic Immigration Counsel Now
The FY 2027 H-1B Cap season introduces:
- High financial risk
- Increased compliance exposure
- Greater unpredictability
- Reduced selection odds for entry-level roles
- Heightened scrutiny for certain nationalities
Companies employing individuals on F-1 OPT, STEM OPT, L-1, TN, O-1, or other employment visas should reassess sponsorship strategies immediately.
How VKM Law Group Can Help
At VKM Law Group, immigration attorneys in New Jersey, we assist:
- Corporations and startups
- Small and mid-sized businesses
- Healthcare organizations
- IT and technology companies
- Foreign professionals and recent graduates
We are currently preparing H-1B cap registrations for FY 2027 and advising clients on:
- H-1B lottery strategy
- National Interest Exception requests
- Compliance risk management
- Employment-based immigration planning
- Alternative visa pathways
If your company plans to sponsor foreign talent or if you are a professional seeking H-1B status, proactive legal guidance is critical.
Contact VKM Law Group
For experienced guidance from a trusted immigration attorney in New Jersey, contact VKM Law Group today to schedule a consultation.