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H‑1B Overhaul: $100,000 Fee Takes Effect as DHS Advances Wage‑Weighted Selection

Economists foresee fewer approvals, prompting shifts to outsourcing.

Overview

  • After confusion over scope, the White House clarified the $100,000 charge is a one‑time payment that applies only to new H‑1B petitions filed on or after Sept. 21, not to renewals or current holders.
  • DHS has formally proposed replacing the random lottery with a process that prioritizes higher‑paid and higher‑skilled roles, a change expected to face public comment and likely legal challenges.
  • Major business groups issued cautious statements as companies reassess hiring, with analysts saying startups and smaller employers could be squeezed while staffing and outsourcing firms gain.
  • Recruiters and officials in Germany, the UK and Canada moved to attract deterred H‑1B talent, with new pitches and visa pathways also surfacing from China.
  • JPMorgan economists estimate the policy could cut up to 5,500 U.S. work authorizations per month, with local concerns mounting in innovation hubs such as Massachusetts’ tech and biotech sectors.