2026 H-1B Changes: New Fees, Wage-Based Lottery, and the Biggest Shift

Since fall 2025, the U.S. government has introduced - or proposed - several major reforms to the H-1B visa program. These changes go far beyond minor procedural updates. They redefine who gets to participate in the lottery, how petitions are selected, and what employers must do to stay compliant.

After reviewing the latest developments, one thing is certain: The H-1B process in 2026 will shift from “can I get selected” to “can I qualify at all.”

We are entering a new phase of the H-1B system. It’s becoming harder to get in, but potentially easier to succeed if you do. With registration numbers expected to drop, selection odds could improve. However, qualifying to apply—especially at the wage level now required—is becoming the real challenge.

Key H-1B Changes That Could Shape the 2026 Lottery

Several major H-1B rule changes are on the table — some already finalized, others still in progress. If implemented, these policies will significantly reshape the 2026 H-1B application season:

1. $100,000 H-1B Fee for Overseas Applicants

Beginning September 21, 2025, U.S. employers filing new cap-subject H-1B petitions for workers outside the United States who do not already hold valid H-1B status will need to pay a $100,000 supplemental fee.

This new requirement is designed to curb mass filings from outsourcing firms that have historically flooded the lottery with low-wage applications.

✅ Good news for F-1 students: The rule does not apply to petitions filed from within the U.S. under a Change of Status (COS), which means F-1 students transitioning to H-1B while staying in the U.S. won’t be affected. 

Although the fee is currently being challenged in court, it has not been blocked and is still expected to take effect as planned.

2. Wage-Based H-1B Lottery System

Another major reform would change how the H-1B lottery works. Instead of a random selection process, USCIS plans to prioritize applicants based on wage level, job location, and SOC (Standard Occupational Classification) code. Employers will need to provide this information during registration.

Under this proposed model, petitions offering higher wages (Level 3 or 4) will receive higher selection priority, while entry-level roles (Level 1) will face lower odds of being selected. Level 2 applicants may see moderate improvement depending on the wage and position.

This policy is expected to be finalized by late December 2025 and, unless legally blocked, will take effect for the 2026 lottery in March.

3. Higher Prevailing Wages

The only major H‑1B reform still pending is the Department of Labor’s plan to revise the H‑1B prevailing wage levels.

This proposal first appeared in January 2021 under the Trump administration and aimed to significantly raise required wages for both H‑1B and PERM green card cases. It was later paused due to lawsuits and the change in administration.

Now, if the DOL moves forward again, it is widely expected to use the January 2021 final rule as a blueprint. This would involve raising the required percentiles for each prevailing wage level as follows:

• Level 1: 35th percentile
• Level 2: 53rd percentile
• Level 3: 72nd percentile
• Level 4: 90th percentile

What This Means for 2026 Applicants

🚨H-1B Registration Volume Will Drop

For years, outsourcing firms flooded the lottery with duplicate low-wage applications, skewing the odds. But with the $100K fee and wage-based selection in place, these players may exit the game - drastically reducing overall registration numbers.

Fewer registrations = higher chances for serious applicants.

🚨 Not All Applicants Are Equal Anymore

With a wage-weighted lottery, your wage level will directly impact your selection odds.

• Level 3 & 4: Strongest chance of selection
• Master’s + Level 2: Competitive
• Level 1: Still possible, but much riskier

Most recent grads are offered Level 1 or Level 2 wages.  For many entry-level F-1 graduates offered Level 1 wages, the odds could decline significantly—unless their employer is willing to increase compensation.

🚨 Employer Sponsorship Just Got More Complicated

These changes will force U.S. employers to rethink their hiring strategies. Likely trends include:

• Prioritizing experienced foreign workers over fresh grads
• Outsourcing roles abroad to reduce compliance burdens
• Relying more on automation and AI to replace junior roles

Why You Must Prepare Earlier Than Ever

In previous years, H-1B prep often began in February or March. That strategy won’t work for 2026.

Because wage level, SOC code, and job title now play a role in selection, candidates must start gathering information and aligning with their employers months in advance. Finalizing details at the last minute could mean missing the window entirely.

Applicants will need to:

• Confirm employer willingness to sponsor
• Determine the appropriate SOC code and job description
• Assess and document wage level eligibility
• Align all necessary information well before the March registration period
  
  

What You Can Do Right Now

If you’re planning to apply in 2026, the preparation starts now. Here’s how to get ahead:

1. Talk to your employer

Ask whether they’re willing to sponsor you and if they can offer a competitive wage level based on your job duties and location.

2. Research the prevailing wage

Use the official DOL wage database to find the correct SOC code and wage tier that matches your role.

3. Lock in your strategy early

Clarify your job title, responsibilities, and salary well before registration opens. These details will directly impact your chances of being selected.

Final Thoughts

The 2026 H-1B season could be the most complex and competitive cycle we’ve seen in years. With stricter qualification requirements and rising wage expectations, the real challenge lies in preparing early and securing employer support.

For international students and early-career professionals, this is no longer just about beating the lottery odds. It’s about entering the game fully prepared, with the right employer, wage level, and job classification in place.