Changes to the H-1B visa and the consequences for USA assignments

President Trump’s administration has introduced two major changes to the highly popular H-1B visa program for skilled workers: The previous – randomized – lottery will be replaced by a salary-based selection process. And: The USA will charge an additional, one-off fee of 100,000 US dollars for certain H-1B applications. These changes have significant implications for employers seeking to employ foreign professionals in the US. Employers may want to review their posting practices and consider alternatives to the H-1B visa.

What is the H-1B visa for skilled workers?

Introduced in 1990, the H-1B skilled worker visa program is a category of non-immigrant U.S. visas that allows U.S. companies to employ highly skilled foreign workers in specialty occupations in the U.S. for up to six years. Under certain circumstances, extensions beyond this six-year period are possible. A specialty occupation is an occupation that generally requires at least a bachelor’s degree or equivalent work experience in the respective field. Common specialized professions include engineers, nurses, accountants, university professors, etc.

As this work visa is flexible in terms of eligible occupations and is particularly suitable for longer-term US assignments, it is very popular with US employers if they cannot find suitable candidates on the local labor market. However, only 85,000 new H-1B visas are issued each year, of which 20,000 are reserved for candidates with at least a master’s degree from a US university. The demand for new H-1B visas has far exceeded the supply. This results in an annual lottery that determines which employers can file new H-1B petitions for which candidates.

First change: Reform of the H-1B lottery

In the past, the lottery was based on a random selection process to give all pre-registered candidates an equal chance – regardless of their position, salary or experience. Now, priority is to be given to candidates with higher salaries.

The idea behind the change is that better pay indicates better qualifications.

In general, the U.S. government groups similar positions into blanket occupational groups and divides them into four pay grades. Entry-level positions generally fall under pay grades 1 and 2, while positions requiring more experience are usually assigned to pay grades 3 and 4. The salary levels are adjusted annually and vary depending on the position and geographical location. According to the new regulation, applicants applying for a salary level 4 position will participate in the lottery four times, applicants for salary level 3 positions three times and so on. However, this change does not only affect the selection probability of registered candidates. Employers must also determine the job classification and pay grade of the position in question prior to registration.

The US government believes that this change will help fill key positions in industries such as technology and healthcare with the most qualified candidates. However, it could put recent graduates and young professionals at a disadvantage.

Second amendment: H-1B fee in the amount of 100,000 US dollars

At On September 19, 2025, President Trump announced the introduction of an additional $100,000 fee for H-1B applications, on top of the existing H-1B application fees. After considerable uncertainty among employers and their H-1B employees as to exactly which H-1B applications would be subject to this new additional fee, the US Citizenship and Immigration Services (USCIS) issued guidance on October 20, 2025 providing further information. According to this, the fee will only apply to applications filed on or after September 21, 2025, and to consular applications. This means that the fee will not apply to H-1B petitions filed on or after September 21 that have been or will be approved as changes or extensions of status within the United States. H-1B petitions for which employers are seeking an adjustment or extension within the U.S., but which have been approved by USCIS as consular petitions, are subject to the $100,000 fee. The following overview illustrates the scope of application:

In these cases, the fee of USD 100,000 is charged:

• H-1B applications that include a consular application because the prospective employee is outside the United States
• H-1B applications that include a consular application because the employee is not eligible for a change or extension of status within the U.S.
• H-1B applications approved as consular petitions because USCIS has determined that the worker is not eligible for a change or extension of status within the U.S.

No fee is charged in these cases:

• H-1B petitions to extend the existing H-1B status of an employee within the U.S.
• Applications for a simultaneous extension and change of status
• H-1B applications involving a change of status within the U.S. from another nonimmigrant visa to the H-1B

In the past, the H1B visa program has attracted international talent to strengthen the American economy – especially in fields such as engineering, technology, education and healthcare. President Trump’s administration justifies the fee by citing the high number of H-1B applicants and approvals, which could contribute to unemployment among American citizens, especially young college graduates between the ages of 22 and 27. By imposing higher costs on companies that employ foreign professionals, the government hopes to encourage companies to hire more local US workers and only recruit highly skilled professionals from abroad.

At the time of publication of this article, two lawsuits are pending in US courts challenging the legality of the fee of USD 100,000. However, the lawsuits have no suspensive effect. This means that the USA can levy the fee – at least until the proceedings have been concluded.

Alternatives to the H-1B visa

For many employers, paying the $100,000 fee is not affordable for even their most qualified employees and applicants. Therefore, employers of non-U.S. workers should consider which employees they want to employ with an H-1B visa or whether alternative forms of work authorization in the U.S., such as E-1/2, L-1, O-1, are an option.