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White House Sets $100,000 H‑1B Fee, DHS Unveils Wage‑Weighted Selection Plan

Early reactions point to offshoring, likely lawsuits, plus stepped‑up talent recruitment by rival countries.

Overview

  • The $100,000 charge on new H‑1B petitions took effect Sept. 21 as a one‑time fee that does not apply to renewals or current visa holders, according to White House clarifications.
  • DHS has formally proposed replacing the random cap lottery with a selection system that prioritizes higher pay and advanced qualifications, with a public comment period now underway.
  • JPMorgan economists estimate the fee could cut U.S. work authorizations by up to about 5,500 per month, with outsized effects on early‑career foreign graduates and tech and consulting hiring.
  • Business groups have voiced caution and many firms are assessing costs, while the Labor Department signals tougher enforcement of H‑1B rules through efforts such as Project Firewall.
  • Analysts expect faster offshoring and remote delivery that benefits staffing and outsourcing firms, while the steep fee disadvantages startups and entry‑level applicants as countries like Germany, Canada, the UK, China and Hong Kong court displaced talent.