The administration has proposed replacing the random H-1B lottery with a wage-based selection process favoring higher-paid roles. The rule is still in the notice-and-comment stage, but employers should prepare now. Here’s what you need to know about the proposed changes, the $100k H-1B fee, and what steps to take next.

The White House issued an Executive Order on September 19, 2025, imposing a $100,000 fee on all new H-1B petitions, effective September 21. Initial confusion suggested the fee could apply to all H-1B workers abroad, but USCIS and CBP later clarified it applies only to new filings, with possible exemptions for extensions and amendments. The administration has since confirmed physicians and medical residents may also be exempt, though further guidance is pending.

The Heritage Foundation’s latest report and a new DHS proposal both call for replacing the H-1B lottery with a wage-based selection system. While framed as targeting “top talent,” this shift risks shutting out small businesses, start-ups, and early-career professionals. By prioritizing the highest salaries, the policy could further concentrate visas among large corporations and reduce diversity in the U.S. high-skilled labor market.