The administration has proposed a $100,000 fee on certain new overseas H‑1B petitions and a wage‑based lottery that would give higher‑paid applicants multiple entries while leaving low‑wage applicants with one. Large tech firms are likely to benefit because they can absorb costs and place hires in top salary bands, while startups and many international students could lose ground. The State Department has also broadened consular vetting to include social‑media reviews; the wage rule is under DHS review and the fee faces legal challenges.
New H‑1B Rules Tilt the Lottery Toward Higher‑Paid Applicants — Big Tech Gains While Startups and International Students Lose Out
Big Tech is emerging a winner in the new H-1B system, while early-stage startups could lose out.Matthias Balk/nirat/Getty/Getty Images
Winning a slot in the annual H‑1B visa lottery has long been a long shot. This year, the administration layered on a $100,000 fee for certain new overseas petitions and proposed a wage‑based lottery that would weight chances toward the highest‑paid applicants — changes that immigration lawyers say will upgrade some entrants' odds while squeezing out others.
What the Changes Would Do
The overhaul includes two major elements: a $100,000 fee on new petitions filed for workers living abroad and a proposed rule to allocate multiple lottery entries by salary band. Under the proposal, applicants placed in the top wage bracket would receive four entries, while those in the lowest band would remain with a single entry. The formal public comment period on the wage‑based rule closed in late October; the Department of Homeland Security (DHS) is reviewing comments and preparing the final rule language.
Why It Matters
Every spring the government runs a lottery for 110,000 new H‑1B visas; nearly half a million people submitted entries last fiscal year. Because the fee applies primarily to new petitions filed from abroad, and because the wage weighting advantages high salaries, critics say the changes would advantage large, well‑funded tech employers and well‑paid specialists, while disadvantaging startups, IT staffing firms, and many international students and new grads.
"The proposed rule will protect American workers, encourage employers to offer competitive wages, and ensure that H‑1B visas go to top‑tier talent filling critical, high‑skill positions as the law intended," said Matthew J. Tragesser, a spokesman for U.S. Citizenship and Immigration Services.
Big Tech, Startups, and Students: Who Wins and Who Loses
Large technology firms are expected to absorb the fee more easily and to benefit from the wage weighting. A National Foundation for American Policy analysis found that in fiscal year 2025 Amazon led employers with 4,644 approved new H‑1B petitions, followed by Meta, Microsoft, and Google. Immigration lawyers note these companies typically hire from the domestic pool or change status for people already in the U.S., which often avoids the fee entirely.
Startups that rely on equity compensation rather than high cash salaries could lose ground under a wage‑weighted lottery. "Often the best startup founders forgo being paid a living wage because they're so dedicated to the mission," said Bay Area immigration lawyer Sophie Alcorn. Cash‑poor, equity‑heavy startups may find it harder to secure H‑1B hires unless they can offer top salary bands; one exception may be well‑funded artificial‑intelligence startups, where base pay for elite machine‑learning researchers is already high.
International students and new graduates may also face reduced odds. New grads typically begin in lower wage tiers and therefore would receive fewer lottery entries. Some employers, alarmed by the shifting rules and headlines, have reportedly rescinded offers that required visa sponsorship.
Screening and Legal Challenges
The State Department has simultaneously expanded consular vetting, directing officers to review applicants' social media and other publicly available online activity as a standard part of processing. That guidance has caused some consulates to postpone or cancel visa appointments while they adapt to the broader screening requirements. The State Department says this prioritizes rigorous vetting over speed.
The $100,000 fee is already the subject of multiple federal court challenges. Administration officials framed the changes as responses to alleged abuses of the H‑1B program to hire lower‑paid foreign talent in place of American workers.
Market Effects and Employer Responses
Immigration attorneys predict a range of reactions: some employers may scale back sponsorships, high‑volume filers may reduce overseas petitions (which could slightly improve odds for remaining applicants), and large, cash‑rich firms may consolidate their advantage. Experts also warn the policy environment is unpredictable. "One of the main attributes of this administration is that it keeps people guessing," said Ted Chiappari, head of the immigration group at Duane Morris.
What Applicants Should Know
- If a foreign national is already in the U.S. on F‑1 status and changes status to H‑1B without filing an overseas petition, the $100,000 fee generally would not apply, immigration lawyers say.
- The wage‑based lottery remains a proposal until DHS publishes a final rule; stakeholders filed comments during the official review period.
- Legal challenges could alter or block the fee before it takes full effect.
The proposed changes would reconfigure incentives for employers and applicants alike, privileging higher salaries and domestic pipelines while increasing costs and scrutiny for certain overseas hires.
