The H-1B cap season has always been competitive, but 2026 introduces changes that reshape how employers budget, how candidates plan, and how the “lottery” stage itself works. At the start of the new year, two policy developments stand out: a new $100,000 supplemental payment tied to certain H-1B cases that involve visa processing outside the U.S., and a new wage-weighted selection system that redefines how United States Citizenship and Immigration Services (USCIS) chooses registrations when demand exceeds the annual cap.
Furthermore, the FY 2027 lottery (registration in March 2026) continues the beneficiary-centric model that began with FY 2025, which mandates that each person is entitled only to a single entry in the selection process, even if multiple employers submit registrations for that same individual.
Because the new $100,000 payment mainly affects cases processed through a U.S. consulate abroad, it is now especially critical where the worker is located and whether the employer can file an H-1B petition as a Change of Status for someone already in the United States.
The $100,000 Supplemental H-1B Fee: Who It Impacts and Why Location Matters
The $100,000 supplemental fee first announced in the September 2025 Presidential Proclamation, which stated that the new fee must accompany certain new H-1B petitions filed after September 21, 2025.
The key point is that this payment is connected to certain “new entry” H-1B scenarios that are completed through visa processing outside the United States, which is why it has had an outsized effect on candidates who would need consular processing. FY 2027 cap bulletin explicitly warns that some selected petitioners “may need to pay an additional $100,000 fee before filing the H-1B petition” as a condition of eligibility.
Just as importantly, the proclamation does not apply to a petition that requests an amendment, change of status, or extension of stay for a person inside the U.S. as long as USCIS grants that request.
This is why the “where will the beneficiary be when the petition is filed?” question now drives the entire case strategy:
- If the beneficiary is outside the U.S. and the case must be completed through visa stamping/entry, the $100,000 supplemental payment may be part of the employer’s budget and risk analysis.
- If the beneficiary is inside the U.S. and the employer can file an H-1B petition requesting Change of Status, the case can often avoid the $100,000 payment (assuming USCIS approves the change of status request).
There are also timing and travel considerations. Remaining in the U.S. through approval is part of staying within the “CoS” pathway, and that U.S.-based change-of-status filings are generally not impacted by the proclamation when properly structured and approved.
How the Wage-Weighted H-1B Lottery Selection Process Works?
In a nutshell, USCIS will still run a lottery when there are more registrations than available cap numbers, but not everyone will have the same number of “chances” in that lottery. Instead, the system gives more selection weight to registrations tied to higher wages for the occupation and location. The new system is designed to favor higher-paid roles while still keeping lower wage levels in the pool.
What “wage level” means?
The wage level is not simply “a high salary” or “a low salary.” It is a government-referenced tier that reflects how the offered wage compares to typical wages for that occupation in that geographic area, often ranging from more entry-level roles to more senior roles.
What changes during selection?
Under the final rule, when USCIS must run a lottery, it will enter each beneficiary into the selection pool multiple times depending on wage level:
- Wage Level I: entered one time
- Wage Level II: entered two times
- Wage Level III: entered three times
- Wage Level IV: entered four times
A simple example shows how the system is intended to work: if two people are registered in the same season and one is tied to a higher wage tier than the other, the higher-tier registration will have more “entries” in the selection pool, which increases the likelihood of selection relative to a lower-tier registration.
This change also makes early wage planning more consequential. The offered wage still needs to be real, supportable, and consistent with the role described in the petition—because the same wage decisions that help at the selection stage must still hold up at the petition stage.
Read also: Alternatives to H-1B Visa: A Comprehensive Guide
Beneficiary-Centric Registration Continues in 2026
The FY 2027 season also continues the beneficiary-centric selection model that began with FY 2025. In this framework, USCIS runs selection based on unique beneficiaries, rather than treating each registration as a separate lottery ticket, and if a beneficiary is selected, each employer that registered that beneficiary receives a selection notice and may file a cap-subject petition on that person’s behalf.
Multiple employers may still register the same person, but the system is built so that the person’s selection outcome is tied to the beneficiary rather than multiplied by the number of submissions. The intent is to reduce gaming and keep the selection process focused on genuine job offers and compliant filings.
Key FY 2027 H-1B Cap Season Dates and What to Do at Each Step
The FY 2027 cap season refers to H-1B numbers for employment that generally begins with the federal fiscal year starting October 1, 2026 (or later, depending on the petition’s requested start date and USCIS approval).
Here are the essential milestones and what each step involves:
| Step | Date(s) | What happens and how to apply |
|---|---|---|
| Electronic registration window opens | March 4, 2026 (12:00 p.m. ET) | Employers (or their attorneys) submit online registrations through a USCIS online account and pay the $215 registration fee per beneficiary. This step creates eligibility for selection; it does not grant H-1B status or work authorization. |
| Electronic registration window closes | March 19, 2026 (12:00 p.m. ET) | USCIS closes the registration system at noon ET. Employers should not treat this as a “submit on the last day” event—account setup and internal approvals should be handled before the window opens. |
| Selection notifications | By March 31, 2026 | USCIS plans to send selection notifications through USCIS online accounts. Selection means the employer may file a full cap-subject H-1B petition for that beneficiary. |
| Petition filing period begins | Expected April 1, 2026 | Selected employers file Form I-129 with a certified LCA and supporting documents. The filing window is expected to remain open for a minimum of 90 days (specific deadlines appear on the selection notice). |
| Earliest employment start date (cap-subject) | October 1, 2026 | For approved cap-subject cases, employment in H-1B status generally cannot start earlier than Oct. 1 of the fiscal year. |
Because of the fact that selected petitioners may need to pay an additional $100,000 fee before filing the petition in certain scenarios, employers should confirm early whether the case will be filed as Change of Status (inside the U.S.) or through a consular/entry pathway (outside the U.S.).
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Change of Status: The Main Alternative for Candidates Already in the U.S.
Change of Status (CoS) is not a separate visa category. It is the option that allows someone who is already in the U.S. in another lawful nonimmigrant status to switch to H-1B status inside the U.S. after USCIS approval.
To reiterate, in 2026, CoS is ideal since USCIS the new $100,000 additional fee does not apply to petitions requesting a change of status (or an amendment/extension) for a person inside the U.S.
That exemption is why many employers are reassessing their candidate pool and prioritizing U.S.-based beneficiaries where CoS is possible. The trade off is that CoS cases can be more sensitive to immigration timing (status maintenance) and travel (departing the U.S. during the process can disrupt a CoS strategy).
How to Prepare for H-1B Application in 2026
The 2026 changes make early coordination more important than in prior years, especially because employers need to align job details, wage planning, and filing pathway decisions before the March registration window opens.
Most successful cap-season preparations involve:
- Building or confirming a USCIS online account and ensuring the employer has the correct account type to register beneficiaries (USCIS emphasizes organizational accounts for employers).
- Finalizing a job description, ensuring that it is a specialty occupation, that supports the wage tier, which will then be used for registration and later for the petition.
- Confirming whether the candidate is likely to pursue Change of Status (inside the U.S.) or will need a consular/entry-based approach (outside the U.S.), since this can determine whether the $100,000 payment becomes a budgeting issue.
- Planning around the beneficiary-centric model by making sure that all parties understand the person is considered as a single beneficiary in selection, and that any multi-employer scenario must still be managed with consistent, truthful information.
Handled well, preparation is less about “beating the system” and more about building a clean, consistent case file that makes sense at both the selection and the petition stages.
FAQs
Does the $100,000 payment apply to the online lottery registration step in March?
No. The registration step involves submitting an electronic registration and paying the registration fee. The $100,000 payment comes later at the petition stage for certain cases.
With the new selection system, can entry-level roles still be selected?
Yes. The system increases the probability of selection for higher wage tiers, but it does not eliminate lower wage tiers from participation.
If multiple employers register the same beneficiary, does that create multiple lottery entries?
The process is beneficiary-centric: USCIS selects unique beneficiaries, and if the beneficiary is selected, each employer that registered that beneficiary receives a selection notice and may file a petition.
How can a U.S.-based candidate avoid the $100,000 payment?
When the beneficiary is inside the U.S. and the employer files an H-1B petition requesting Change of Status, the $100,000 payment requirement does not apply if USCIS grants the change of status request.
Do Change of Status cases eliminate the need for visa stamping forever?
CoS can allow H-1B status to start inside the U.S. without immediate visa stamping. However, if the person later travels internationally, they generally need an H-1B visa stamp to return in H-1B status.
If your organization or your team is preparing for the FY 2027 H-1B season and wants to understand how the new wage-weighted selection rule, the beneficiary-centric model, and the $100,000 payment risk affect your timeline and filing pathway, contact Grape Law at info@grapelaw.com. Our team can help map out a compliant H-1B plan, including Change of Status strategies for beneficiaries who are already in the United States.
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