The Trump administration has taken steps to overhaul the H-1B visa program, arguing that the visa—which allows U.S. companies to hire college-educated foreign workers for specialized occupations—has been exploited to displace American workers. Multiple changes now affect how you advise H-1B petitions, from lottery selection to fee liability. A federal court has also weighed in, invalidating one key component of the overhaul.
What changed
The Trump administration ran the first H-1B lottery with results weighted to favor more highly paid workers, shifting selection away from a pure random draw. The administration imposed a $100,000 fee for new H-1B workers hired from outside the U.S. This policy applies to new H-1B petitions filed on behalf of foreign nationals outside the United States.
However, on June 8, a federal judge struck down the fee in a ruling the Trump administration said it would appeal. Judge Leo Sorokin, an Obama appointee, agreed with plaintiffs from 20 Democratic states who argued the fee imposed by Trump’s executive order amounted to an “unauthorized tax,” not a “regulatory payment” as the Trump administration contended.
Why it matters
The wage-weighted lottery fundamentally reshapes H-1B selection outcomes. The new rules—including the $100,000 fee and wage-weighted lottery—are dramatically shrinking the applicant pool, reducing chances for entry-level and overseas workers and forcing companies to rethink whether sponsoring an H-1B is worth the risk.
The $100,000 fee created immediate friction even before the court struck it down. USCIS received 85 payments under the fee by February 15, 2026, while external applications fell 87 percent and USCIS lost about $19.5 million in fee revenue. This signals severe employer discouragement with the policy.
The legal status remains unsettled. While one federal judge struck down the fee, an earlier federal court ruling upheld it, creating conflicting precedent across circuits. The Trump administration has signaled it will appeal, meaning the fee could be reinstated on appeal even though the June 8 ruling temporarily eliminated it.
Way forward
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Track the appeal. The Trump administration’s appeal of Judge Sorokin’s ruling could reinstate the $100,000 fee. Monitor the First Circuit Court of Appeals docket and USCIS guidance for any reinstatement notice. Until then, assume the fee is not due for new petitions filed outside the U.S.
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Assess wage-weighted selection impact. For cap-subject clients, evaluate whether the weighted lottery makes H-1B competitive for their salary band. Compare H-1B with alternatives such as L-1 transfers, O-1 cases, STEM OPT, and J-1 programs, though not all alternatives fit all roles.
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Document current status for in-country beneficiaries. The fee and lottery changes apply primarily to petitions filed for beneficiaries outside the U.S. The fee does not apply to anyone who has a current visa and only applies to future applicants in lottery draws who are outside the U.S., not to anyone who participated in the 2025 lottery. Verify your client’s category before assuming exemption.
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Prepare for legislative momentum. A bipartisan group of lawmakers is pushing forward with a bill that would exempt healthcare workers from the steep fee, signaling sectoral relief may be negotiated. Monitor congressional activity for narrow carveouts that could affect your client’s eligibility or fee liability.
Disclaimer
Fola Editorial is a software company, not a law firm, and this article is not legal advice. Immigration policy changes rapidly and court rulings can be reversed or modified on appeal. Verify the current status of the $100,000 fee, the wage-weighted lottery rules, and any USCIS guidance against the primary source linked above and consult a licensed immigration attorney before making filing decisions based on this summary.