A seismic shift has struck the American employment-based immigration system. As of September 21, 2025, employers filing new H-1B visa petitions must now pay a staggering $100,000 fee—a requirement that has fundamentally changed how businesses approach hiring foreign talent. For Texas employers preparing for the FY 2027 H-1B lottery opening in March 2026, understanding this new landscape is not just important—it is essential for strategic workforce planning.
At Lozano Law Firm, we have been fielding urgent calls from employers across San Antonio, Eagle Pass, and San Angelo who are grappling with how this unprecedented fee affects their hiring strategies. This comprehensive guide breaks down everything you need to know about the $100,000 H-1B fee, who must pay it, available exemptions, and strategic alternatives that may better serve your business needs.
What Is the $100,000 H-1B Fee and Why Was It Implemented?
Presidential Proclamation 10973, signed in September 2025, established a $100,000 supplemental fee for certain H-1B visa petitions. This fee is in addition to all existing USCIS filing fees, premium processing fees, and other associated costs. The stated purpose of this dramatic increase is to prioritize American workers and ensure that H-1B sponsorship is reserved for truly exceptional circumstances where domestic talent cannot be found.
The fee took effect on September 21, 2025, meaning any new H-1B petition filed after that date is subject to this requirement. For employers who participated in previous H-1B lottery cycles, this represents a fundamental change in the cost-benefit analysis of sponsoring foreign workers.
Who Must Pay the $100,000 H-1B Fee?
Understanding which petitions trigger this fee is critical for workforce planning. The $100,000 fee applies specifically to:
- New H-1B petitions filed for workers who have never held H-1B status
- Cap-subject petitions that must go through the annual lottery process
- Change of employer petitions where the worker is transferring H-1B sponsorship to a new company and a new petition is required
The fee is paid by the petitioning employer—not the beneficiary. USCIS has made clear that employers cannot pass this cost to employees, either directly or through payroll deductions, as doing so would violate H-1B program requirements.
Critical Exemptions: Who Does NOT Pay the Fee?
Not all H-1B-related filings trigger the $100,000 fee. The following categories are exempt:
H-1B Extensions
If you are extending an existing H-1B worker’s status with the same employer, no new $100,000 fee applies. This includes standard three-year extensions and extensions based on pending green card applications.
H-1B Amendments
Changes to an existing H-1B—such as worksite changes, material changes in duties, or salary adjustments—do not trigger the supplemental fee when filed as amendments rather than new petitions.
Cap-Exempt Employers
Certain employers remain exempt from the H-1B annual cap and, consequently, from the $100,000 fee:
- Institutions of higher education
- Nonprofit research organizations
- Governmental research organizations
- Nonprofit entities affiliated with or related to institutions of higher education
Concurrent Employment
Workers already holding valid H-1B status who take on additional concurrent employment with a second employer may file under different provisions that do not trigger the full fee in certain circumstances.
How This Affects FY 2027 H-1B Lottery Registration
The H-1B registration period for FY 2027 is expected to open in early March 2026. Employers planning to participate must now factor the $100,000 fee into their sponsorship decisions before registering candidates for the lottery.
Here is the critical timeline employers must understand:
- Registration Period: Expected March 1-7, 2026 (dates subject to USCIS announcement)
- Registration Fee: $215 per registration (unchanged)
- Selection Notification: Expected late March 2026
- Petition Filing Window: 90 days from selection notification
- $100,000 Fee: Due at time of petition filing for selected registrations
The new weighted selection system, effective February 27, 2026, adds another layer of complexity. Under this system, registrations are no longer selected randomly but are weighted based on the offered wage level relative to the prevailing wage for the position and geographic area.
The New Weighted Selection System Explained
Beginning with FY 2027 registrations, USCIS will implement a wage-based weighted selection system that fundamentally changes lottery odds:
How Wage Levels Affect Selection
The Department of Labor classifies wages into four levels based on the prevailing wage for each occupation and geographic area:
- Level 1: Entry-level positions (17th percentile)
- Level 2: Qualified positions (34th percentile)
- Level 3: Experienced positions (50th percentile)
- Level 4: Fully competent positions (67th percentile)
Under the weighted system, Level 4 wage positions receive the highest probability of selection, while Level 1 positions receive the lowest. This means employers offering higher salaries will have significantly better odds in the lottery.
Strategic Implications for Employers
Combined with the $100,000 fee, the weighted selection system creates a clear message: H-1B sponsorship is now designed for senior, highly-compensated positions. Employers sponsoring entry-level workers face both lower selection odds and the same steep fee, making alternative visa strategies increasingly attractive.
Strategic Alternatives to H-1B Sponsorship
Given the dramatic cost increase, many Texas employers are exploring alternative visa categories that may better suit their needs. At Lozano Law Firm, we help businesses evaluate these options based on their specific circumstances.
TN Visas for Mexican and Canadian Professionals
The TN visa remains an excellent option for qualifying professionals from Mexico and Canada. Key advantages include:
- No annual cap or lottery
- No $100,000 fee
- Faster processing times
- Lower filing costs
- Three-year validity with unlimited renewals
TN visas are available for over 60 professional categories, including engineers, accountants, scientists, and computer systems analysts. However, recent policy changes in June 2025 have narrowed eligibility requirements, making professional legal guidance essential.
L-1 Intracompany Transferee Visas
For multinational companies, the L-1 visa allows transfer of managers, executives, and specialized knowledge employees from foreign offices to U.S. operations. Benefits include:
- No annual cap
- No $100,000 fee
- Direct path to EB-1C green card for managers and executives
- Spouse work authorization through L-2 status
O-1 Extraordinary Ability Visas
Workers with extraordinary ability in sciences, arts, education, business, or athletics may qualify for O-1 status. This category offers:
- No annual cap or lottery
- No $100,000 fee
- Initial three-year validity
- Unlimited extensions
While O-1 standards are rigorous, many professionals who might otherwise pursue H-1B status can meet the criteria with proper case development and documentation.
E-2 Treaty Investor Visas
For Mexican nationals, the E-2 treaty investor visa provides an alternative path for entrepreneurs and key employees of treaty investor businesses. This option requires substantial investment in a U.S. enterprise but avoids the H-1B lottery and fee structure entirely.
Impact on Texas Industries
The $100,000 fee will affect different industries and regions of Texas in varying ways:
Technology Sector
San Antonio’s growing tech industry, which has relied heavily on H-1B workers for software development and engineering positions, faces the most significant impact. Larger companies with substantial resources may absorb the cost for senior positions, while startups and smaller firms may pivot to alternative visa categories or domestic hiring.
Healthcare
Hospitals and healthcare systems sponsoring physicians on H-1B visas must factor the new fee into recruitment budgets. Fortunately, many healthcare positions may qualify for cap exemptions through affiliated teaching institutions.
Energy Sector
Oil and gas companies in South Texas, including operations near Eagle Pass and San Angelo, often hire specialized engineers and geologists. These employers should explore TN visa options for qualifying Mexican professionals and L-1 transfers from international operations.
Employer Compliance Considerations
Beyond the fee itself, employers must ensure continued compliance with all H-1B program requirements:
- Labor Condition Application (LCA): Employers must still file LCAs certifying payment of prevailing wages and compliance with working condition requirements
- Public Access File: Documentation must be maintained and made available for public inspection
- Non-Displacement: Employers cannot displace U.S. workers to hire H-1B employees
- Good Faith Recruitment: H-1B-dependent employers face additional attestation requirements
Frequently Asked Questions
Can employers deduct the $100,000 fee from employee wages?
No. USCIS and Department of Labor regulations prohibit employers from passing H-1B filing fees to employees. Doing so constitutes a violation that can result in penalties, petition revocation, and debarment from the H-1B program.
Does the fee apply to H-1B transfers between employers?
It depends on how the transfer is structured. If a new cap-subject petition is required, the fee applies. If the worker already holds valid H-1B status and the transfer is processed as a cap-exempt petition, different rules may apply. Consult with an immigration attorney to evaluate your specific situation.
What happens if our selected H-1B registration is not used?
The $100,000 fee is only due when actually filing the petition. If you register for the lottery, are selected, but decide not to file, you forfeit only the $215 registration fee.
Are there any pending legal challenges to the fee?
Several business groups and immigration advocacy organizations have filed legal challenges. However, as of January 2026, the fee remains in effect and employers should plan accordingly while monitoring developments.
How does premium processing work with the new fee?
Premium processing remains available and is separate from the $100,000 fee. Employers seeking 15-day processing will pay the premium processing fee ($2,805 for H-1B) in addition to all other fees including the new supplemental fee.
Planning Your Workforce Strategy for 2026
With March 2026 approaching, Texas employers should take immediate action:
- Audit Current Workforce: Identify employees on H-1B status, their expiration dates, and extension options
- Evaluate Alternatives: Assess whether TN, L-1, O-1, or other visa categories may serve your needs
- Budget Appropriately: Factor the $100,000 fee into workforce planning budgets for any new H-1B sponsorships
- Review Wage Levels: Consider the weighted selection system when determining offered salaries
- Consult Immigration Counsel: Develop a comprehensive strategy that accounts for all options and compliance requirements
How Lozano Law Firm Helps Texas Employers
Attorney Alfredo Lozano is Board-Certified in Immigration and Nationality Law by the Texas Board of Legal Specialization. His unique background, including legal training at ITESM (Tecnológico de Monterrey) in Mexico, provides invaluable perspective for employers navigating the complexities of business immigration.
Our firm serves employers throughout Texas from our offices in San Antonio, Eagle Pass, and San Angelo. Whether you are a multinational corporation or a growing small business, we provide strategic guidance tailored to your workforce needs.
Take Action Before the March 2026 Deadline
The FY 2027 H-1B registration period will be here before you know it. Do not wait until the last minute to develop your strategy. Contact Lozano Law Firm today for a comprehensive employer consultation. We will evaluate your current workforce, assess alternative visa options, and develop a strategic plan that serves your business goals while managing costs effectively.
Call our office or complete our online contact form to schedule your employer immigration strategy consultation. With the right planning, you can navigate these changes successfully and continue building the talented workforce your business needs.
