A major new change could make the US H-1B visa route significantly more expensive for employers, adding to growing uncertainty for Indian technology professionals and other skilled workers seeking jobs in America.
The US Department of Homeland Security (DHS) has proposed making a large H-1B payment a formal regulatory requirement, with the proposed amount set at $103,265 for certain H-1B petitions. The proposal follows the controversial $100,000 payment introduced by the Donald Trump administration in 2025.
The proposed rule will now go through a 30-day public comment period. If the government proceeds after reviewing the comments, the rule could be finalised by the end of 2026.
The development comes as the H-1B programme is already undergoing several major changes, including a new wage-based selection system, tighter scrutiny and legal challenges over the $100,000 payment.
From $100,000 payment to a proposed permanent rule
The proposed $103,265 charge follows a 2025 presidential proclamation that introduced a $100,000 payment for certain new H-1B petitions.
That measure was due to expire in September 2026, but it directed DHS to work on regulations that could make the payment a permanent requirement.
The latest proposal would effectively move the payment from a temporary policy into the formal regulatory system.
However, the proposal is not yet a final rule. It must first go through the public-comment process before DHS can decide whether and how to implement it.
The $100,000 H-1B payment is already in court
The payment has also become part of a legal battle.
On June 8, 2026, a US District Court in Massachusetts overturned agency guidance that had been used to implement the $100,000 payment requirement.
The federal government challenged that decision and asked the US Court of Appeals for the First Circuit to pause the lower court’s ruling.
The First Circuit rejected that request on July 24.
DHS said it disagreed with the court’s decision but would comply with the order while considering its next legal steps.
The department has also indicated that if the court order is eventually lifted, it still intends to collect the payment.
Why the change matters to Indians
The proposed fee is particularly important for India because Indian professionals account for the largest share of H-1B beneficiaries.
For years, the H-1B programme has been an important route for Indian engineers, IT professionals, researchers, financial professionals and healthcare workers to work in the US.
But the traditional path from education to employment and eventually long-term residence in America is becoming more complicated.
Higher costs, stricter selection rules and increased scrutiny could make the process more difficult for both employers and workers.
H-1B applications already face strong competition
The US Citizenship and Immigration Services (USCIS) has already received enough H-1B petitions to reach the legally mandated limits for fiscal year 2027. The annual limit includes:
65,000 regular H-1B visas
20,000 additional visas for people with qualifying US master’s degrees
This means demand is already significantly higher than the number of visas available under the regular programme.
The proposed fee is therefore arriving at a time when employers and foreign professionals are already dealing with a highly competitive system.
H-1B selection is becoming more wage-focused
Another major change is the move towards a wage-weighted selection system.
Under the newer system, higher-paid positions can receive greater weight during selection than lower-paid positions.
Data cited in the material shows a significant difference in selection rates during the March 2026 cap season. Senior, Level III candidates had a reported 68% selection rate, compared with 40% for entry-level, Level I candidates.
This could have a major impact on international students graduating from US universities, particularly those looking for their first job after completing their studies.
Entry-level candidates may find the H-1B route more difficult if selection increasingly favours higher-paid positions.
Indian IT companies could feel the impact
The $100,000 payment has already affected parts of the market, particularly India-based IT consulting companies whose business models depend heavily on sending employees to US client locations.
At the same time, the H-1B employer landscape is changing.
Large US technology companies such as Amazon, Meta, Microsoft and Google have emerged among the leading H-1B sponsors, alongside the traditional Indian IT companies.
This reflects a broader shift in who is using the H-1B programme and how companies are relying on skilled foreign workers.
US faces a major shortage of skilled workers
The tougher H-1B environment comes despite the United States facing significant shortages in several important industries.
The figures highlighted in the material show that the US is projected to face a shortage of around 10.2 lakh technology workers by 2026, according to US labour projections.
The country is also expected to need around 4.4 lakh new computer-science-related hires every year through 2031.
At the same time, US universities produce around 2.7 lakh graduates annually in this area.
This creates a gap between the number of skilled workers the US economy needs and the number of graduates it produces domestically.
Shortages extend beyond technology
The workforce shortage is not limited to software and technology.
The US manufacturing sector could face around 15 lakh vacancies by 2033, according to the figures provided.
Healthcare is also experiencing a similar challenge. Around one in five US family physicians are trained abroad, highlighting the country’s reliance on international professionals.
The US could also face a shortage of approximately 80,000 doctors by 2036.
These shortages make the debate around skilled immigration particularly important because foreign workers already fill many roles in sectors where domestic supply is limited.
A proposed bill could tighten the system further
The H-1B programme could face additional restrictions if the proposed End H-1B Visa Abuse Act of 2026 becomes law.
The proposed legislation would introduce several major changes, including:
A three-year pause on new H-1B visas
Reducing the annual H-1B cap from 65,000 to 25,000
Introducing a minimum annual salary threshold of $200,000
These measures are proposals and would require legislative action before becoming law.
If enacted, they could significantly change the number of foreign professionals entering the US through the H-1B programme.
A timeline of major H-1B changes
The H-1B system has already gone through several important changes over the past two decades.
2008: A random lottery was introduced after demand exceeded the annual H-1B limit.
2016: Certain companies with more than 50% H-1B/L-1 workers faced higher fees, including a fee of $4,000.
2017: A Trump administration order called for tighter scrutiny under a “Buy American, Hire American” approach.
2020: H-1B/L-1 entry was suspended for certain workers and wage requirements were increased. Denials also reached record levels.
2021–2024: The Biden administration reversed several Trump-era restrictions, and denial rates declined.
2024: The beneficiary-centred lottery system ended multiple registrations for individuals.
September 2025: A $100,000 payment was introduced for certain new H-1B workers entering the US from abroad. Applications reportedly plunged by 87% after the change.
December 2025: The random lottery was abolished and a wage-weighted selection system was introduced, effective from fiscal year 2027.
June 2026: A court ruling struck down the $100,000 payment requirement.
August 2026: DHS proposed removing the 60-day grace period for H-1B workers who lose their jobs.
What the proposed $103,265 fee means
It is important to understand that the $103,265 figure is a proposed fee/payment for certain H-1B petitions, not a general amount that every H-1B worker personally pays.
The financial burden can fall primarily on employers sponsoring workers, depending on the circumstances and final rules.
If the proposed regulation is approved, companies would have to consider this additional cost when deciding whether to sponsor certain foreign workers.
That could particularly affect companies that frequently transfer employees from overseas to US client locations.
The bigger issue for Indian professionals
For Indian students and professionals, the changes are creating a more uncertain path to working in the US.
The H-1B route has traditionally offered opportunities to people in technology, engineering, healthcare, research, finance and other specialised fields.
But the combination of higher costs, limited visa numbers, wage-based selection and greater scrutiny means simply having a US job offer may no longer guarantee an easy route to an H-1B visa.
The situation could be especially challenging for fresh graduates and early-career workers because higher salary-based selection can favour more experienced and highly paid candidates.
What happens next?
The DHS proposal will now enter a 30-day public comment period. The department will then consider the feedback before deciding whether to finalise the rule.
At the same time, the legal dispute surrounding the $100,000 payment remains important, while other proposed changes could further reshape the H-1B system.
For now, the key point is that the $103,265 amount is proposed, not yet a final permanent requirement.
But taken together with the other changes, it signals a much tougher environment for companies seeking foreign talent and for Indian professionals hoping to build careers in the United States.
The situation also highlights a major contradiction: the US is facing substantial shortages of skilled workers in technology, healthcare and manufacturing, even as access to one of its most important skilled-worker visa programmes becomes more restrictive.
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