US Imposes $100K H‑1B Fee; Lottery Overhaul Proposed

On Sept. 24 the Department of Homeland Security proposed replacing the H‑1B lottery with a weighted selection that prioritizes higher‑skilled, higher‑paid applicants and opened a 30‑day public comment period. Separately, the administration imposed a $100,000 fee on new H‑1B petitions effective for petitions filed from Sept. 21; officials clarified the fee applies prospectively to new visas and not to renewals. Employers from startups to Big Tech, universities and nonprofits warn the combined fee and selection changes could strain budgets, reduce filings, lock out smaller firms and push more work overseas. USCIS registrations for FY2026 fell to 336,153 with selection rates rising, and economists caution the policies risk harming U.S. innovation and AI competitiveness by deterring international talent. Indian IT shares and markets reacted sharply, although firms with offshore‑centric models or relatively few U.S. visa holders—such as Happiest Minds and HSBC—say they expect limited direct impact while larger H‑1B‑dependent companies will be hit harder.