Understanding H-1B Lottery Updates (Filing Window: March 4–19)

In a rapidly evolving regulatory landscape, employers should take a fresh look at how they approach the H‑1B program and the professional workers who benefit from it. The H‑1B foreign worker program remains an indispensable resource for U.S. employers to employ foreign workers in specialty occupations, particularly in critical STEM fields like technology, medicine, and engineering. Recent regulatory changes aiming to reform the FY 2027 H‑1B lottery process present hurdles. While most employers will be exempt from a new fee of $100,000, all will be subject to the new weighted selection rule that gives higher wage jobs better odds for selection. Yet, employers should continue leveraging the program's opportunities for their global talent. This article outlines why employers should remain invested in participating in the H‑1B lottery for their foreign national employees and offers strategies to navigate the new complexities effectively. The H-1B registration window is open March 4–19, 2026.

New Rules for the FY 2027 H‑1B Lottery

Two major changes affecting the upcoming H‑1B lottery require employers to rethink their petition strategies: the New Weighted Selection Rule and the $100,000 fee for certain H‑1B petitions filed for workers from outside the United States. Despite these challenges, employers can still position their organizations to remain competitive in securing H‑1B workers for critical roles.

$100,000 Fee for Certain Petitions

On September 19, 2025, the President issued a Proclamation introducing a $100,000 payment requirement for certain H‑1B petitions filed on or after September 21, 2025. The fee is a significant increase from the base filing fee and other supplementary charges for anti-fraud measures, education, and premium processing that employers already bear. The fee is an entry ban and applies only to new H‑1B petitions filed for beneficiaries outside of the U.S. who do not currently have a valid H‑1B visa. The fee generally will not apply to the following:

• Petition for change of status, such as from student to H‑1B;
• H‑1B amendment due to a material change in the job; or
• Extension of stay in H‑1B status.

However, the fee will apply if USCIS determines that the beneficiary cannot change to H-1B status from within the United States or must depart before activating H‑1B status (e.g., without valid visa status, or if the alien departs the U.S. before adjudication of a change of status request).

While this fee would be a significant cost for employers, exceptions may apply for roles deemed essential to U.S. national interests.

If the petition is subject to the $100,000, the petitioner must make the payment via pay.gov before filing the petition with USCIS and provide either proof of payment or proof that an exception has been granted.

The Secretary of Homeland Security may grant exceptions under rare and strict conditions, including the following:

• Where the worker's presence aligns with national interest;
• There are no qualified American workers for the role;
• The worker poses no security threat; and
• Requiring the employer to pay the fee would undermine U.S. interests.

Exception requests are submitted to H1BExceptions@hq.dhs.gov.

Employers seeking the national interest exception must submit supplementary documentation alongside their H‑1B petition. This includes the following:

• A written statement outlining the public benefit of the beneficiary's employment, with specific emphasis on areas of national interest.
• Evidence of the worker's qualifications, including professional credentials and a track record of achievement in the critical area of work.
• Supporting letters from subject matter experts or interested government agencies.

Although obtaining the exception may require additional time and effort, its availability serves as a lifeline for organizations relying on foreign talent to address urgent societal needs.

New Weighted Selection Rule

The new weighted selection rule prioritizes lottery registrants based on wage levels, favoring higher-paid and higher-skilled positions. Wages have played no role in the H‑1B selection process in the past. Now, government wage data, with Level I, II, III, or IV wages depending on job duties and locations, will impact selections.

• Wage-Based Weighting: Registrations correlating to higher Occupational Employment and Wage Statistics (OEWS) wage levels receive more entries in the lottery. Wage Level IV registrations are entered four times, Level III three times, Level II twice, and Level I once.
• Integrity Measures: USCIS mandates that registrations align with bona fide job offers and proffered wages accurately reflect the selected wage levels. Discrepancies between the occupation, location(s), or wage offered on the registration and the Labor Condition Application (LCA) could lead to denial or revocation of petitions.
• Lowest level controls: If there are multiple locations or multiple employers filing registrations, USCIS will default to the lowest OEWS wage leveling available to determine the number of entries.
• Alternate Wage Surveys: If the company will be relying on a private survey to determine the prevailing wage, the USCIS will compare that wage to the OEWS wage levels and if below the level I wage, USCIS will default to Level I for determining the number of registration entries.

Why Employers Should Still Pursue the H‑1B Lottery

Despite these significant regulatory shifts, companies should continue to leverage the H‑1B visa program. Here are key reasons to consider maintaining participation in the lottery:

• Global Competition for Talent. Skilled foreign workers are instrumental in driving innovation, filling critical roles, and sustaining U.S. competitiveness in global markets. Opting out of the lottery risks losing access to highly specialized professionals that are not readily available in the domestic workforce.
• Adaptability Through Strategy. The weighted lottery system incentivizes employers to invest in offering competitive wages, which can improve the likelihood of selection. Employers hiring for entry-level roles or lower wage positions should assess alternative visa options, yet skilled roles at higher wage levels remain favorably positioned for selection.
• National Interest Opportunities. The national interest exception associated with the $100,000 consular processing fee offers relief for organizations filling roles vital to U.S. priorities, such as public health, defense, technology innovation, and education. For businesses to meet the strict eligibility criteria, this route enables sponsorship of integral foreign talent at reduced cost.
• Long-Term Workforce Planning. While the new regulations can introduce short-term financial challenges, the H‑1B visa program continues to offer a reliable mechanism for securing specialized foreign workers, especially in sectors experiencing labor shortages. Developing robust, strategic approaches to comply with wage-based weighting and petition requirements is essential to retaining access to global talent pools.

Key Considerations and Strategies for Employers in the 2026 H‑1B Lottery

To navigate the new landscape effectively, employers should act in the following key areas:

• Prioritize Competitive Wage Levels. Proffered wages will directly impact the odds of selection under the weighted lottery. Employers should review OEWS wage data for job locations and ensure alignment with higher wage levels (III or IV). Where possible, Employers should optimize recruitment strategies with an emphasis on roles that justify competitive compensation.
• Prepare for Compliance. USCIS will be closely monitoring discrepancies between LCAs and job registrations. Employers must ensure that every petition aligns with real-world practices, prevailing wage guidelines, and matches job details in submission paperwork. Adherence to accuracy minimizes risks of denials or revocations.
• Leverage the National Interest Exception. For petitions subject to the $100,000 consular processing fee, employers filling roles critical to U.S. priorities should submit compelling applications for the national interest exception. Detailed evidence and support from recognized agencies can reduce fee burdens while securing essential foreign workers.
• Evaluate Alternate Visa Options. Employers hiring for lower-wage or entry-level positions should explore other visa categories (e.g., O visas for extraordinary ability or TN visas for eligible Canadian/Mexican workers).

Conclusion

The FY 2027 H‑1B lottery presents both challenges and opportunities for U.S. employers. While changes like the weighted selection process and $100,000 fee require heightened planning and compliance, the H‑1B program remains a vital avenue for securing exceptional global talent. By prioritizing competitive wages, aligning strategic positions with national interest criteria, and ensuring compliance, employers can maintain their foothold in attracting skilled foreign workers to drive innovation and leadership in the global economy.

Now is the time to optimize your H‑1B strategy with experienced immigration counsel. Reach out to DWT's immigration team for guidance that ensures compliance while maximizing your chances of success in the upcoming lottery.