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White House Overhauls H‑1B: $100,000 Fee Takes Effect as DHS Proposes Wage‑Weighted Selection

Employers now face a one‑time fee on new petitions alongside a newly unveiled wage‑based allocation plan.

Overview

  • The $100,000 charge applies once per beneficiary for new H‑1B petitions and does not cover renewals, according to White House guidance issued after the Sept. 19 proclamation.
  • DHS has proposed replacing the random lottery with a selection system that favors higher‑paid, higher‑skilled roles, a change now headed into public comment alongside a Labor Department enforcement push branded Project Firewall.
  • The surprise fee triggered operational scrambling, with major tech firms recalling traveling employees and many companies pausing or reassessing hiring as business groups voice cautious concern.
  • JPMorgan economists estimate the policy could cut new work authorizations by up to about 5,500 per month, with analysts warning the cost burden will fall hardest on startups, smaller employers and entry‑level candidates.
  • Executives and recruiters report accelerated plans for offshoring and alternative‑country hiring as Canada, Europe and Hong Kong court talent, with particular exposure for Indian IT workers who historically receive a large share of H‑1B approvals.