H-1B Entry Restriction Extended to 2027: What Businesses Need to Know

H-1B Entry Restriction Extended Through 2027: Key Rules and Changes

The H-1B entry restriction, initially put in place by the Trump administration, has been extended through September 21, 2027. This extension impacts how certain foreign workers can enter the U.S. on H-1B visas. While a national-interest exception exists, its application is narrow. Additionally, other significant changes, including a new wage-based selection process for the H-1B cap and increased scrutiny on employer layoffs, are reshaping the landscape for businesses seeking to hire foreign talent.

National-Interest Exception and Restriction Details

The H-1B entry restriction, renewed on September 18, 2026, is in effect from September 21, 2026, through September 21, 2027. This proclamation targets individuals hired from abroad and those seeking H-1B status through consular notification, port-of-entry notification, or pre-flight inspection. The Department of Homeland Security (DHS) can grant a national-interest exception to this restriction. To qualify, the hiring must demonstrably benefit the United States and pose no threat to U.S. security or welfare. This exception can apply to individual workers, an entire company’s H-1B workforce, or even workers across an entire industry.

Court Challenges to the $100,000 Fee

A separate measure, a $100,000 fee for certain H-1B worker visas, has faced significant legal challenges. On September 30, 2026, a federal judge blocked the enforcement of this fee. This ruling followed an earlier district-court decision in June 2026 that vacated the fee policy entirely. While the presidential proclamation extending the entry restriction remains in place, court orders have cast doubt on the fee’s enforceability. Attorneys suggest that the fee is unlikely to be enforced unless higher courts overturn these decisions. This creates a complex situation for employers, where the stated terms of the proclamation are active, but a key associated fee is blocked by court action.

Increased Scrutiny on Employer Layoffs

In addition to the entry restriction and fee disputes, a separate executive order signed on September 18, 2026, mandates closer examination of H-1B filings. This order directs the Secretaries of State, Labor, and Homeland Security to review employers’ past and planned layoffs. Specifically, agencies must consider whether an employer has laid off similarly situated U.S. workers in the preceding year or if planned layoffs could negatively impact American workers. This directive adds another layer of review for H-1B petitions, aiming to protect American workers’ job opportunities and wages. This scrutiny goes beyond the standard requirements for specialty occupations and labor condition applications.

FY 2027 Cap Selection Tied to Wage Level

For the upcoming Fiscal Year 2027, the selection process for H-1B cap-subject workers has changed. Instead of a random lottery, USCIS will now use a weighted selection system that prioritizes wage levels. This change, finalized in December 2025, means that employers offering higher wages may have a better chance of having their H-1B registrations selected. The annual numerical limits for H-1B visas remain unchanged, with 65,000 slots under the regular cap and 20,000 under the U.S. advanced-degree exemption, totaling 85,000 slots. The FY 2026 registration period, for comparison, saw enough petitions to fill both the regular and master’s caps.

Proposed $103,265 Cap Fee Remains Separate

It is important to distinguish the $100,000 fee from the proposed $103,265 fee for cap-subject H-1B petitions. The latter was proposed by DHS and USCIS in August 2026 and would apply to petitions under both the regular and master’s caps. This proposed fee is a separate measure from the temporary payment outlined in the presidential proclamation, which is currently subject to court orders. If finalized, the proposed $103,265 fee would represent an additional cost for employers seeking H-1B workers through the cap system. The FY 2027 weighted selection process is already active, and the renewed proclamation’s period is set to end in September 2027 unless further administrative actions are taken.

Frequently Asked Questions