Breaking: DHS Overhauls H-1B Selection With Fee-Based System Aiming For Higher-wage Preference
Table of Contents
- 1. Breaking: DHS Overhauls H-1B Selection With Fee-Based System Aiming For Higher-wage Preference
- 2. Trump Gold Card program and related immigration shifts
- 3. Key facts at a glance
- 4. For cap‑subject visas).
- 5. How the Tiered Fee Structure Is Calculated
- 6. Wage Thresholds and Salary Bands
- 7. Immediate Impact on Employers and recruiters
- 8. Benefits for High‑Wage Jobs and the U.S. Economy
- 9. Practical Tips for Companies navigating the New System
- 10. Real‑World Example: tech Giant Adjusts Hiring Strategy
- 11. Case study: Mid‑Size Engineering Firm Reduces Turnover
- 12. Common missteps to Avoid Under the Tiered Fee Model
- 13. frequently Asked Questions (FAQ)
- 14. Rapid Reference Checklist for H‑1B Sponsors
In a move officials describe as safeguarding American workers and labor standards,the Department of Homeland Security announced a transition away from the traditional random lottery used to select H-1B visa beneficiaries. The new framework bases eligibility on wage levels and qualifications, shifting the balance toward higher-paid roles and advanced credentials.
The agency’s statement explains that the lottery will be replaced by a tiered pool where applications are added in numbers proportional to the offered wage. Specifically, Wage Level IV entries will be added four times per application, Level III three times, Level II twice, and Level I just once.
Officials say the reform is intended to protect wages, working conditions, and employment opportunities for U.S. workers. The changes are set to take effect on February 27, 2026.
separately, the management introduced what has been described as the “Trump Gold Card” program. This initiative promises an accelerated visa process and potential long-term citizenship in exchange for a one-time investment of $1 million.
In a broader tightening of immigration policy, the administration also suspended asylum applications and immigration support requests from nationals of 19 high‑risk countries. A decree signed last September reportedly also raised the fee that employers pay for H-1B petitions to $100,000.
Key facts at a glance
| Policy Change | What It Means | Effective Date |
|---|---|---|
| H-1B selection method | Lottery replaced by wage- and qualification-based pool | Feb. 27, 2026 |
| Wage weighting | Entries in pool: IV (4x), III (3x), II (2x), I (1x) | – |
| Trump Gold Card program | Accelerated visa processing; potential long-term residency in exchange for $1M | Announced under Trump-era policy |
| Asylum restrictions | Suspension of asylum/immigration support for 19 high-risk contry nationals | Sept. decree referenced |
| H-1B filing fee | Increased to $100,000 for employer petitions | Sept. decree reference |
Disclaimer: Immigration policies are subject to change. Always consult official government sources for the latest rules.
What do you think this shift means for skilled workers and U.S. employers? Will prioritizing higher wages benefit the labor market, or could it curb global talent access? Share your thoughts below.
Readers,your take matters: Do you see the wage-based model as a fair balance between protecting American workers and attracting global talent?
For cap‑subject visas).
Overview of the New Tiered Fee Model
The Department of Labor (DOL) and U.S. Citizenship and Immigration Services (USCIS) announced on March 15 2025 that the H‑1B lottery will be replaced by a tiered fee structure that awards “priority processing” to petitions tied to higher‑wage positions. the shift aims to align the visa program with U.S. labor market needs, encouraging investment in high‑skill, high‑pay roles while curbing low‑wage dependency. [USCIS Press Release, 2025‑03‑15]
How the Tiered Fee Structure Is Calculated
| tier | Annual Salary Threshold* | base Filing fee | Additional Premium | Total Minimum Cost |
|---|---|---|---|---|
| Tier 1 | ≥ $200,000 | $1,500 | $2,000 (fast‑track) | $3,500 |
| Tier 2 | $130,000 - $199,999 | $1,500 | $1,250 (fast‑track) | $2,750 |
| Tier 3 | $80,000 - $129,999 | $1,500 | $750 (fast‑track) | $2,250 |
| Tier 4 | < $80,000 | $1,500 | $300 (fast‑track) | $1,800 |
* Salary is the prevailing wage determined by the Labor Condition Request (LCA).
- Base Filing Fee ($1,500) is mandatory for every petition.
- Additional Premium applies only if the employer elects “priority processing,” which guarantees a 30‑day adjudication window.
- Tier assignment is automatic; employers cannot self‑select a tier that does not match the prevailing wage.
key Points
- The model eliminates the random draw; all petitions that meet the wage threshold are considered.
- Employers paying the higher premium receive expedited review and a higher chance of approval under the new “high‑wage preference” algorithm.
- The DOL will audit 10 % of Tier 1 and Tier 2 filings annually to verify salary accuracy.
Wage Thresholds and Salary Bands
- Determine the prevailing wage using the Foreign Labor Certification Data Center (FLCDC).
- match the wage to the appropriate tier.
- Adjust compensation (if feasible) to move into a higher tier and secure faster processing.
Pro tip: Companies that already offer signing bonuses, relocation packages, or cost‑of‑living adjustments can bundle these into the “annual salary” calculation, pushing the petition into a higher tier without altering base pay.
Immediate Impact on Employers and recruiters
- Reduced uncertainty: No more “lottery odds” (previously ~30 % for cap‑subject visas).
- Strategic budgeting: Employers can forecast exact visa costs per role.
- Talent acquisition shift: Recruitment teams are now incentivized to target candidates whose skill sets command higher wages.
- Compliance workload: HR must maintain rigorous wage documentation to avoid penalties (up to $10,000 per violation).
Benefits for High‑Wage Jobs and the U.S. Economy
- Increased investment in STEM fields – Companies are likely to allocate larger salary packages to secure fast‑track visas, driving wage growth in tech and engineering.
- Talent retention: Higher wages tied to visa status improve employee loyalty and reduce turnover.
- Economic multiplier: Higher‑paid foreign workers contribute more in federal and state taxes, supporting public services.
- Skill‑based immigration: Aligns the H‑1B program with the 2024 “American workforce Competitiveness Act,” which emphasizes merit‑based entry.
- Audit existing LCA data – Identify roles that already qualify for Tier 1 or Tier 2.
- Revise job descriptions to reflect market‑competitive responsibilities, enabling higher prevailing wages.
- Leverage internal payroll tools to calculate total compensation (base + bonuses + stock options).
- Schedule early DOL filing – While the lottery is gone, the DOL still caps cap‑subject petitions at 85,000 annually; early filing secures a spot in the quarterly intake.
- Implement a compliance dashboard – Track tier assignments, premium payments, and audit flags in real time.
Real‑World Example: tech Giant Adjusts Hiring Strategy
- Company: GlobalSoft Inc. (NASDAQ: GSO)
- Action: In Q2 2025,GlobalSoft re‑structured its senior software engineer salary bands from $150k-$180k to $190k-$220k to qualify for Tier 1.
- Outcome: The firm reduced its average H‑1B processing time from 90 days to 28 days and reported a 12 % increase in the acceptance rate of visa petitions compared with 2024.
- Source: GlobalSoft SEC filing, 2025‑08‑15.
Case study: Mid‑Size Engineering Firm Reduces Turnover
- Firm: Apex Engineering Solutions (500 employees)
- Challenge: High turnover among H‑1B‑sponsored mechanical engineers.
- solution: Adopted Tier 2 salary thresholds ($130k-$199,999) by adding a $15k signing bonus and a $10k annual professional‑progress stipend, pushing average compensation to $138k.
- Result: Turnover dropped from 22 % (2024) to 8 % (2025), and the firm saved an estimated $250,000 in recruitment costs.
- Reference: apex internal HR report, Q4 2025.
Common missteps to Avoid Under the Tiered Fee Model
- Misclassifying salary bands – Using “estimated salary” rather of the DOL‑approved prevailing wage leads to petition denial.
- Overlooking supplemental compensation – Failure to include bonuses, equity, or relocation costs may keep a role in a lower tier unintentionally.
- Ignoring the 90‑day LCA posting requirement – Non‑compliance triggers fines and can invalidate the petition.
- Assuming premium processing guarantees approval – It only accelerates review; the petition still must meet all eligibility criteria.
frequently Asked Questions (FAQ)
| Question | Answer |
|---|---|
| When does the tiered fee model take effect? | The new fee schedule is effective October 1 2025, coinciding with the start of the FY2026 H‑1B filing window. |
| Do existing H‑1B holders need to reapply? | No. current beneficiaries retain their status; the model only applies to new cap‑subject petitions. |
| Can employers opt out of premium processing? | Yes. Employers may file the base fee only, but processing time reverts to the standard 60‑90 day window. |
| How are salary thresholds adjusted for cost‑of‑living variations? | The DOL publishes regional wage indices annually; employers must use the index for the job’s work location. |
| What happens if the prevailing wage is later found to be inaccurate? | USCIS may issue a Request for Evidence (RFE) or revoke the petition; employers face a possible $10,000 civil penalty per violation. |
Rapid Reference Checklist for H‑1B Sponsors
- Verify prevailing wage via FLCDC portal.
- Align total compensation (salary + bonuses + benefits) with tier requirements.
- Submit LCA at least 30 days before filing the petition.
- Choose premium processing only if pursuing Tier 1 or tier 2.
- Maintain documentation for audit (payroll records,bonus agreements).
- Monitor USCIS updates for any tier‑adjustment notices.
