Everything changed for high-skilled immigration on a Friday night in September 2025. If you work in tech or run a business that relies on specialized talent, you probably remember the panic. President Trump signed a proclamation that basically threw a wrench into the entire H-1B system. It wasn't just a minor tweak; it was a $100,000 "restriction on entry" that sent HR departments into a tailspin.
Since then, the Department of Homeland Security (DHS) has been busy. They aren't just looking at fees anymore. They are fundamentally rewriting how people get picked for visas in the first place. Honestly, the old random lottery—the one where your chances were the same whether you were a genius AI researcher or a junior coder—is officially on its deathbed.
Why the H-1B Visa Reform DHS Trump Strategy is Different This Time
Most people think these changes are just about "closing the border." That’s a huge oversimplification. This isn't just about keeping people out; it’s about a massive shift toward a "merit-based" or "wage-based" selection process. The DHS finalized a rule on December 23, 2025, that replaces the random lottery with a weighted system.
Here is how the new math works. Starting with the FY 2027 cap (the registration happening in March 2026), your "entries" into the selection pool depend on your salary level.
- Level IV (Experts): You get 4 entries. Your odds are basically doubled or better.
- Level III (Mid-level): You get 3 entries.
- Level II (Junior-ish): You get 2 entries.
- Level I (Entry-level): You get 1 entry.
DHS says this is to stop "unscrupulous employers" from flooding the system with low-paid workers to undercut American wages. Critics, though, say it’s going to kill startups that can't afford to pay $150k for a fresh graduate. It’s a gamble. The administration is betting that by making the visa harder and more expensive to get, companies will be forced to hire Americans.
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The $100,000 Elephant in the Room
We have to talk about that fee. The September 19, 2025, proclamation was a shocker. It requires a $100,000 payment for new H-1B petitions if the worker is currently outside the U.S. and doesn't have a valid visa yet.
Think about that for a second. $100,000.
That is more than most people's annual salary in many parts of the country. For a small business in rural Iowa or a nonprofit research lab, that is an impossible number. The Trump administration argues this fee "internalizes the cost" that foreign labor supposedly imposes on the U.S. economy.
There’s a catch, though. The Secretary of Homeland Security can grant "National Interest Exceptions" (NIE). We’ve seen this before during the pandemic, but now it’s the only way around the $100k price tag. If you’re a doctor in a rural hospital or a top-tier cybersecurity expert, you might get a pass. But "might" is a scary word for a business trying to plan its 2026 roadmap.
Is the H-1B Visa Reform DHS Trump Plan Legal?
The courts are already messy. The U.S. Chamber of Commerce and groups like the Association of American Universities sued almost immediately. On December 24, 2025, a D.C. District Court actually upheld the $100,000 fee. That was a huge win for the administration.
However, the battle isn't over. On January 5, 2026, the U.S. Court of Appeals agreed to expedite the case. Lawyers are arguing that the President doesn't have the authority to just invent a $100k fee without Congress. They say it violates the Administrative Procedure Act (APA).
While the lawyers argue, the DHS is moving full steam ahead. They’ve already told USCIS to put an "adjudicative hold" on petitions from 39 specific countries—mostly those on the updated travel ban list. If your candidate is from one of those countries, their application is basically sitting in a drawer until further notice.
The Impact on Silicon Valley and Beyond
Tech giants like Amazon, Microsoft, and Google are the biggest users of this program. In FY 2025 alone, Amazon had over 10,000 approvals. These companies are now looking at offshoring as a serious alternative. If it costs $100,000 plus legal fees just to apply for someone to move to California, why not just hire them in Vancouver or Bangalore?
It’s not just big tech, either.
- Healthcare: Rural areas depend on H-1B docs.
- Higher Ed: Universities are panicking about losing researchers to Canada or the UK.
- Small Business: Startups are basically being priced out of the global talent market entirely.
The administration’s logic is that these jobs will go to Americans. But economists like Madeline Zavodny have pointed out that when you restrict H-1Bs, the work often doesn't stay in the U.S. It just leaves the country entirely.
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What You Should Do Right Now
If you are an employer or a visa holder, you can't afford to wait for the "final" court ruling. The FY 2027 lottery is right around the corner.
First, look at your salary levels. If you are offering a Level I wage, your chances of winning the lottery just dropped by about 48% according to some estimates. You might need to bump that salary to Level II or III just to have a decent shot.
Second, check the "entry" status. The $100,000 fee applies specifically to those entering the U.S. on a new petition. If your employee is already here—say, on an F-1 OPT visa—and you are doing a "change of status," the fee currently doesn't apply. This has created a massive rush to hire international students who are already physically in the United States.
Third, prepare for the "National Interest" argument. If you have to pay the fee, you need to start building a case for an exemption now. Don't wait until the last minute to find out your "expert" doesn't meet the DHS's new, stricter definition of specialized knowledge.
Looking Ahead to 2026 and 2027
The "random" era of American immigration is over. Whether these specific rules survive the Supreme Court or not, the momentum has shifted toward a high-wage, high-skill preference system.
The DHS is also ramping up audits. We are seeing more "site visits" where officers show up at an office to make sure the H-1B worker is actually doing the job described in the petition. If they’re working from home and the LCA doesn't reflect that? Big trouble.
Next Steps for Employers:
- Audit your current H-1B workforce. Ensure all LCAs match the actual work locations, especially with hybrid work being the norm.
- Budget for the "worst-case" scenario. Assume the $100k fee stays for the 2026 cycle.
- Prioritize "Change of Status" candidates. Look for talent already in the U.S. to avoid the entry fee complications.
- Evaluate O-1 or TN alternatives. For some workers, other visa categories might now be cheaper and more predictable than the reformed H-1B.
The landscape is changing fast. Stay on top of the USCIS newsroom updates because, as we saw last September, a single Friday night proclamation can change everything.