Overview

• Officials clarified the charge is a one‑time payment on new H‑1B petitions and does not apply to renewals or current visa holders.
• The Department of Homeland Security has proposed replacing the random lottery with a wage‑weighted system and opened notice‑and‑comment rulemaking, with legal challenges expected.
• Companies report hiring pauses and explore offshore delivery and staffing alternatives, while major business groups voice cautious concern without direct confrontation.
• JPMorgan economists estimate the change could cut roughly 5,500 U.S. work authorizations per month, and universities, hospitals, and startups warn the fee could price them out as refund policies remain unclear.
• Germany, the UK, Canada, China, and Hong Kong are actively pitching alternative visas and recruitment pathways to attract workers affected by the U.S. shift.