H-1B Visa Rules 2026, Wage-Weighted Lottery, Layoff Reviews and the Blocked $100,000 Fee

The U.S. H-1B program changed in several important ways in 2026. A wage-weighted lottery took effect on February 27, 2026. A September 18, 2026 executive order told federal agencies to weigh an employer’s recent or planned layoffs when reviewing H-1B filings. And the $100,000 payment tied to certain new H-1B petitions, which the White House extended through September 21, 2027, remains blocked in court.

As of October 19, 2026, the agency policies that implement the $100,000 payment have been vacated by federal courts and cannot be enforced. The government is appealing, so this can change quickly.

This article covers the U.S. H-1B program. Canada’s separate Express Entry changes, scheduled for November 3, 2026, are explained in a short section near the end because they are often confused with H-1B news.

Quick Facts: H-1B Visa Rules and the $100,000 Fee in October 2026

Issue	Status as of October 19, 2026
Wage-weighted H-1B lottery	Effective February 27, 2026
Lottery weights	4 entries for wage level IV, 3 for level III, 2 for level II, 1 for level I
Layoff-related scrutiny	Executive order of September 18, 2026 directs agencies to consider recent or planned layoffs affecting similarly situated U.S. workers
$100,000 payment proclamation	Proclamation No. 10973 (September 19, 2025), extended by Proclamation No. 11069 through September 21, 2027
Enforcement of the $100,000 payment	Implementing agency policies vacated by State of California v. Mullin (D. Mass., June 8, 2026) and Global Nurse Force v. Trump (N.D. Cal., September 30, 2026)
First Circuit	Denied the government’s stay request on July 24, 2026
Ninth Circuit	Government filed a notice of appeal in Global Nurse Force v. Trump on October 9, 2026
Separate $103,265 DHS proposal	Proposed only; no final rule identified
Department of Labor prevailing-wage rule	Proposed in March 2026; not final
Statutory H-1B cap	65,000 regular, plus 20,000 for U.S. master’s degree or higher
Guarantee of selection or approval	None

Primary sources: Federal Register weighted-selection rule, September 18, 2026 executive order and September 30, 2026 court order.

What Is the H-1B Visa Under the Immigration and Nationality Act?

The H-1B is a temporary work visa for specialty occupations under Immigration and Nationality Act (INA) section 101(a)(15)(H)(i)(b), codified at 8 U.S.C. § 1101(a)(15)(H)(i)(b). A specialty occupation is defined in 8 U.S.C. § 1184(i)(1) as one requiring theoretical and practical application of a body of highly specialized knowledge and at least a bachelor’s degree or equivalent in the specific specialty.

Annual numerical limits are set by 8 U.S.C. § 1184(g): 65,000 visas for the regular cap and an additional 20,000 for beneficiaries with a U.S. master’s degree or higher. Qualifying universities, affiliated nonprofits and nonprofit research organizations can be cap-exempt, so the lottery does not affect every H-1B petition.

How Does the DHS Wage-Weighted H-1B Lottery Work?

The Department of Homeland Security (DHS) published its final weighted-selection rule in the Federal Register on December 29, 2025, and it took effect on February 27, 2026, in time for the fiscal year 2027 registration season. Before this rule, cap-subject registrations were selected randomly. Now, when random selection is needed, registrations receive entries based on the Department of Labor Occupational Employment and Wage Statistics level of the offered wage for the occupation and work location.

Wage level	Entries in the selection pool
Level IV	4
Level III	3
Level II	2
Level I	1

The wage level depends on the Standard Occupational Classification (SOC) code, the intended area of employment and the offered wage. It is not a ranking of workers by total national salary. A level IV registration has more chances than a level I registration but is not guaranteed selection, and every selected registration still needs a qualifying petition that USCIS can deny.

Employers must make sure the SOC code, work location and wage level in the registration match the real job. A mismatch can create compliance problems.

What Did the 2024 H-1B Modernization Rule Change Before the Lottery?

Several protections that many articles attribute to “2026 rules” came from DHS’s earlier final rule, Modernizing H-1B Requirements, Providing Flexibility in the F-1 Program, and Program Improvements Affecting Other Nonimmigrant Workers, 89 Fed. Reg. 103054, 8 C.F.R. Parts 214 and 274a, which took effect on January 17, 2025:

• Beneficiary-centric selection: Each worker is entered once in the lottery regardless of how many employers register that worker, which targets multiple-registration gaming.
• Cap-gap extension for F-1 students: Cap-gap status and work authorization were extended through April 1 of the fiscal year for which the H-1B change of status is requested, covered by 8 C.F.R. § 214.2(f)(5)(vi).
• Specialty occupation clarification: The degree must be directly related to the job, and a position may accept a range of related fields if the employer shows a logical connection between the degree and the duties.
• Beneficiary-owners: A worker with a controlling interest in the sponsoring company can qualify, with the initial petition and first extension limited to 18 months.
• Site visits: USCIS’s Fraud Detection and National Security (FDNS) Directorate gained clearer authority to conduct workplace inspections, and refusing cooperation can lead to denial or revocation.

What Does the September 18, 2026 H-1B Executive Order Require?

On September 18, 2026, President Trump signed Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program. It directs the Secretaries of State, Labor and Homeland Security to coordinate when reviewing H-1B labor condition applications, petitions, visas and entries, and to consider whether a sponsoring employer has laid off, or plans to lay off, similarly situated U.S. workers. It also directs the Department of Labor’s Wage and Hour Division to review data on previously submitted labor condition applications to decide whether further action against sponsors is warranted.

Does an Employer’s Layoff Automatically Disqualify an H-1B Petition?

No. The order directs agencies to consider layoffs but does not impose an automatic bar. How it affects individual filings depends on agency implementation. Employers should document the business need for the role, the duties, the offered wage and the reason for the hire, and review any recent layoffs affecting comparable U.S. positions.

What Does 8 U.S.C. § 1182(n) Already Require of H-1B Employers?

Existing law already addresses wages and U.S. worker protections. Under 8 U.S.C. § 1182(n) and the Department of Labor’s rules at 20 C.F.R. Part 655, Subpart H, employers file a Labor Condition Application (LCA) attesting that they will pay the higher of the actual or prevailing wage, provide working conditions that do not harm similarly employed workers, and give notice of the filing. “H-1B-dependent” employers and willful violators face additional attestations about non-displacement of U.S. workers, including layoffs in a window around the filing, and recruitment steps. Violations can bring back-wage orders, civil penalties and debarment from the program.

Is the $100,000 H-1B Payment Required in October 2026?

The answer separates the proclamation from the government’s power to enforce it.

Proclamation No. 10973, signed September 19, 2025 under the President’s authority to restrict entry in 8 U.S.C. § 1182(f), barred entry of certain H-1B workers unless their petitions were accompanied by a $100,000 payment, with national-interest exceptions. USCIS guidance applied it to new petitions filed on or after September 21, 2025 for workers outside the United States, not to petitions filed before that date, and generally not to in-country extensions or changes of status. In September 2026, Proclamation No. 11069 extended the restriction through September 21, 2027.

What Did the District of Massachusetts Decide in State of California v. Mullin?

On June 8, 2026, Judge Leo T. Sorokin in State of California v. Mullin, No. 1:25-cv-13829-LTS, vacated the policy implementing the $100,000 payment. The court found that the policy imposed a tax without the delegation from Congress that the fee-setting statutes require. The government appealed. On July 24, 2026, the U.S. Court of Appeals for the First Circuit denied the government’s request to stay the ruling during the appeal, and USCIS stated it would comply while still planning to collect the payment if the order is lifted.

Related article: Kyler Efinger Lawsuit Dismissed, Utah Judge Throws Out Family’s Wrongful Death Case Against Salt Lake City Over Airport Jet Engine Death

What Did the Northern District of California Decide in Global Nurse Force v. Trump?

On September 30, 2026, Judge Haywood S. Gilliam Jr. in Global Nurse Force v. Trump, No. 4:25-cv-08454-HSG, vacated the agency policies implementing Proclamation No. 10973 and its extension in Proclamation No. 11069. He barred enforcement until the required notice-and-comment rulemaking and regulatory-flexibility analyses are complete. Those requirements come from the Administrative Procedure Act, 5 U.S.C. §§ 553 and 706, and the Regulatory Flexibility Act, 5 U.S.C. § 601 et seq. The court denied class certification and denied the government’s motion to dismiss.

The government filed a notice of appeal to the U.S. Court of Appeals for the Ninth Circuit on October 9, 2026, and asked for a stay, citing similar challenges in the First and D.C. Circuits and predicting the dispute may reach the U.S. Supreme Court.

Did Any Court Uphold the $100,000 H-1B Payment?

Yes. In Chamber of Commerce v. Department of Homeland Security, a federal district court in Washington, D.C. upheld the original policy, and that dispute has been on appeal in the D.C. Circuit. This split between courts is why the fee’s long-term status remains uncertain.

Does the Court Ruling Remove Every H-1B Filing Fee?

No. The rulings address the $100,000 payment policy only. Ordinary charges still apply, including the H-1B registration fee of $215, the filing fee for Form I-129, the American Competitiveness and Workforce Improvement Act fee under 8 U.S.C. § 1356(s) and the fraud prevention and detection fee under 8 U.S.C. § 1184(c)(12). Check the current USCIS fee schedule before filing.

Is the $103,265 DHS H-1B Payment Proposal Final?

No final rule creating that payment was identified. The September 30, 2026 court order referred to a separate DHS proposal for a $103,265 payment, and a proposed rule has no legal force until it is finalized and takes effect.

Are the Department of Labor H-1B Prevailing-Wage Rules Changing?

In March 2026, the Department of Labor published a proposed rule, Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States. It is not final, so existing wage requirements under 8 U.S.C. § 1182(n) still apply. The lottery’s wage-level weighting and a possible change in how prevailing wages are calculated are two separate issues.

Do Canada’s November 3, 2026 Express Entry Changes Affect the U.S. H-1B Program?

No. Canada’s changes affect its own Express Entry permanent-residence ranking, the Comprehensive Ranking System (CRS), and do not alter U.S. H-1B eligibility. According to Immigration, Refugees and Citizenship Canada (IRCC), a qualifying job offer in an eligible high-wage occupation earns 100 CRS points if the occupation’s median wage is at least 2 times Canada’s overall median wage, 70 points at 1.5 to under 2 times, and 50 points at 1.3 to under 1.5 times. Candidates with at least 12 months of eligible Canadian work experience in high-wage occupations can earn 70, 40 or 20 points on the same wage tiers, and the two options cannot be combined. IRCC says a Labour Market Impact Assessment (LMIA) will no longer be needed for qualifying job offers used for Express Entry from November 3, 2026. Check the IRCC Express Entry changes page and the IRCC high-wage occupation list for current details.

What Should H-1B Workers and Employers Do Now?

For workers seeking a new H-1B: Ask the employer which wage level applies, whether the registration is cap-subject and what documents will be filed. Confirm your degree is directly related to the job.

For F-1 students: Confirm cap-gap coverage with your Designated School Official (DSO) before your OPT end date.

For current H-1B holders: The weighted lottery mainly affects cap-subject selection, not every extension, amendment or employer change.

For employers: Audit LCAs for accurate work locations and wage levels, review registration data, document bona fide employment before filing Form I-129 and review recent layoffs. Confirm the live status of the $100,000 payment on the USCIS website before paying or refusing to pay, since appeals could change it.

For related coverage, see 19 States Sue Trump Over Proposed $100K H-1B Visa Fee—What Visa Holders Need to Know Now, State Department Green Card Lawsuits, Every Active Case Explained (September 2026) and 9 Universities Face J-1 Visa Probe, What Students Must Know. These are separate matters with separate outcomes.

Key Dates for H-1B Rules and the $100,000 Payment

Date	Development
September 19, 2025	Proclamation No. 10973 imposes the $100,000 payment
September 21, 2025	Payment applies to covered new petitions filed on or after this date
January 17, 2025	2024 H-1B Modernization Rule (89 Fed. Reg. 103054) takes effect
December 29, 2025	DHS publishes the final weighted-selection rule
February 27, 2026	Weighted selection takes effect
March 2026	Department of Labor publishes proposed wage-protection rule
June 8, 2026	D. Mass. vacates the implementing policy in State of California v. Mullin
July 24, 2026	First Circuit denies the government’s stay request
September 18, 2026	Executive order on H-1B program integrity; Proclamation No. 11069 extends the payment to September 21, 2027
September 30, 2026	N.D. Cal. vacates implementing policies in Global Nurse Force v. Trump
October 9, 2026	Government appeals the N.D. Cal. order to the Ninth Circuit
November 3, 2026	Canada’s Express Entry changes scheduled to begin
September 21, 2027	Extended proclamation expires unless renewed; court orders remain relevant

Frequently Asked Questions About H-1B Visa Rules and the $100,000 Fee

Is the $100,000 H-1B Payment Being Collected Right Now?

As of October 19, 2026, no. Courts vacated the implementing agency policies and barred enforcement. The government is appealing, and USCIS has said it plans to collect the payment if the orders are lifted.

How Does the H-1B Wage-Weighted Lottery Work?

Registrations get 1 to 4 entries based on the Department of Labor wage level of the offer: 4 for level IV, 3 for level III, 2 for level II and 1 for level I. It improves odds but guarantees nothing.

Does the 2026 H-1B Lottery Rule Apply to H-1B Extensions?

No. It applies to cap-subject registrations and selection, not to ordinary extensions or most employer transfers.

What Is the F-1 Cap-Gap Extension Under 8 C.F.R. § 214.2(f)(5)(vi)?

It extends F-1 status and work authorization for students with a pending cap-subject H-1B change of status through April 1 of the relevant fiscal year, under the 2024 modernization rule.

Can Employers With Layoffs Still Sponsor H-1B Workers?

Yes. The September 18, 2026 order directs agencies to consider layoffs but does not create an automatic bar.

Can a Founder Sponsor Himself or Herself for an H-1B?

Under the 2024 modernization rule, a beneficiary-owner with a controlling interest can qualify, with the initial petition and first extension limited to 18 months, if all other requirements are met.

Is the $103,265 H-1B Payment a Final Rule?

No final rule was identified. It was described as a DHS proposal in the September 30, 2026 court order.

Are Canada’s Express Entry Changes Part of the H-1B Program?

No. H-1B is a U.S. nonimmigrant program. Express Entry is Canada’s permanent-residence ranking system.

Should H-1B Employers Get Legal Advice Before Filing?

Yes. Rules, court orders and USCIS guidance are changing, and the correct approach depends on the petition type, the worker’s location and the employer’s history. A licensed immigration attorney can advise on a specific case.

Sources and Official Records for H-1B Rules and the $100,000 Payment

1. Federal Register, Weighted Selection Process for Registrants and Petitioners Seeking to File Cap-Subject H-1B Petitions: final rule effective February 27, 2026.
2. White House, Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program (September 18, 2026).
3. White House, Restriction on Entry of Certain Nonimmigrant Workers (September 2026): extension through September 21, 2027.
4. N.D. Cal. order, Global Nurse Force v. Trump, No. 4:25-cv-08454-HSG (September 30, 2026).
5. First Circuit order, State of California v. Mullin, No. 26-1699 (July 24, 2026).
6. 89 Fed. Reg. 103054 (December 18, 2024), DHS Modernizing H-1B Requirements final rule.
7. 8 U.S.C. §§ 1101(a)(15)(H)(i)(b), 1182(f), 1182(n), 1184(g), 1184(i); 20 C.F.R. Part 655, Subpart H; 5 U.S.C. §§ 553, 706.

Researched and written by Israr Ahmad, legal content researcher and founder of AllAboutLawyer.com. All facts verified against the Federal Register weighted-selection rule, the White House executive order and proclamation, and the federal court orders in Global Nurse Force v. Trump and State of California v. Mullin, as of October 19, 2026. Last Updated: October 19, 2026.

AllAboutLawyer.com provides general legal information, not legal advice. It is not a law firm and does not represent any worker, employer, agency or government in these matters.