If you have read the headlines this month, you might think the US has shut the door on the H-1B visa. It has not. The program still exists, existing visas are still valid, and the next registration window opens in March 2027.
What has changed is that hiring a foreign engineer into the US has become slower, less predictable and more politically exposed than it has been in years. For founders and hiring managers, that uncertainty is the real story. This article explains what actually happened in 2026, what has not changed, and the practical options for companies that need senior engineers now.
This article is a business summary, not legal advice. Talk to an immigration attorney about any specific case.
The short version
| What happened | Where it stands (October 2026) |
|---|---|
| $100,000 payment on new H-1B petitions | Blocked by federal courts; appeals continue |
| Wage-weighted lottery | In effect since the FY 2027 cap season |
| Proposed $103,265 filing fee (DHS, August 2026) | Proposed only, not in effect |
| Green card (PERM) suspension for eight companies | Announced October 8, 2026; does not cancel H-1Bs |
| HIRE Act 25% tax on outsourcing payments | Introduced in 2025, stalled in committee, not law |
The $100,000 fee: announced, extended, blocked
A 2025 presidential proclamation required a $100,000 payment for new H-1B petitions. In June 2026, a federal court in Massachusetts declared the policy unlawful and vacated it, finding that the payment was in substance a tax Congress never authorized. The First Circuit declined to pause that ruling in July.
The proclamation was extended in September 2026 through September 2027, but on October 1, 2026 another federal judge struck down the renewed version as well. Courts have not all agreed, so the question may ultimately reach the Supreme Court.
Separately, on August 25, 2026, DHS published a proposed rule that would add a $103,265 payment to cap-subject H-1B petitions. It is a proposal only. Employers do not owe it today.
What this means for you: the fee is not being collected right now, but nobody can promise what the rules will be by the next filing season. That uncertainty is a cost in itself when you are planning a hire.
The lottery now favors higher wages
For the FY 2027 season, DHS replaced the purely random H-1B lottery with a weighted selection that gives better odds to registrations at higher prevailing wage levels.
The effect was immediate. USCIS received about 211,600 eligible registrations, down from roughly 344,000 the year before, for a cap of 85,000 visas. Only 17.7% of selected registrations were at the lowest wage level, and the share of selected beneficiaries with US advanced degrees rose to 71.5%.
What this means for you: if you are a startup that cannot match Big Tech salaries, your candidate's odds have dropped. Early-career and mid-level hires are the ones most likely to miss out.
The October green card suspension
On October 8, 2026, the Department of Labor suspended eight companies from the PERM labor certification program, the main route to employment-based green cards: Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL and Capgemini.
This does not suspend or cancel the H-1B program, and it does not revoke existing H-1B visas. It does mean employees of those companies who were counting on a green card face new uncertainty, and it signals that enforcement attention on skilled immigration is rising.
What has not changed
- The H-1B program still exists, with an annual cap of 85,000 new visas.
- Registration still happens once a year, in March.
- Approved petitions still start no earlier than October 1.
- If your candidate is not selected, there is no second chance until the following year.
That last point matters most. A missed lottery is not a delay of weeks. It is a delay of a year.
Your options if you need engineers now
When a role cannot wait for a visa, companies are increasingly bringing the work to the engineer instead of the engineer to the work. Research on H-1B restrictions has found that US companies hire roughly 0.4 to 0.9 people abroad for every H-1B they are denied, with India among the top destinations.
The practical options are:
- Hire remotely through a development partner. A dedicated developer works on your team, in your tools and overlapping your timezone, without any visa. This is the fastest route when you need someone in weeks, not months.
- Use white-label capacity. If you run an agency, a partner can deliver client work under your brand while you keep the client relationship.
- Explore other visa routes with an attorney. Options such as O-1 or L-1 suit some candidates, but they have their own criteria and timelines.
- Keep the role open and wait for next March. Viable only if the work can genuinely wait a year.
If you are comparing the first option with sponsoring a visa, our guide to H-1B vs a remote developer in India breaks down the cost, timeline and risk side by side, and our developer rates guide covers current pricing by role.
A note on how to frame this inside your company
Remote hiring works best as a way to fill roles you could not otherwise fill, not as a way to replace an existing team. Teams that treat remote engineers as real colleagues, with proper onboarding, shared standups and code reviews, get far better results than teams that treat them as a ticket queue.
How WebAziz helps
WebAziz provides senior developers from India who join your team in 48 to 72 hours, work in your timezone and need no visa. Engagements start with a 1-week pilot on a real task, and you own 100% of the code. You can meet our developers or tell us about the role you need to fill.
Frequently Asked Questions
Did the US cancel the H-1B visa in 2026?
No. The H-1B program still exists and existing visas remain valid. The changes in 2026 were a $100,000 fee that courts have blocked, a lottery weighted toward higher wages, a proposed new fee that is not in effect, and a green card suspension for eight specific companies.
Is the $100,000 H-1B fee in effect?
As of October 2026, no. Federal courts have blocked collection, and a renewed version of the proclamation was struck down on October 1, 2026. Appeals are ongoing, so the situation could change.
What is the wage-weighted H-1B lottery?
It is a selection process introduced for the FY 2027 cap season that gives registrations at higher prevailing wage levels better odds of selection. Lower-wage and entry-level roles are now less likely to be selected.
What happens if my candidate is not selected in the H-1B lottery?
They cannot be filed under the cap until the next registration window, which is a year later. Many companies use a remote development partner to keep the work moving in the meantime.
Can I hire a developer in India without a visa?
Yes. Working with a developer remotely through a development partner requires no US visa, because the developer works from India. You pay the partner for the developer's time, and the developer joins your team and tools remotely.
Sources
- Judge Strikes Down Latest Version of $100,000 H-1B Fee, Forbes
- $100,000 H-1B Fee Invalidated, University of Michigan International Center
- USCIS Completes FY 2027 H-1B Cap Selection, Erickson Immigration Group
- Effects of the $100,000 Fee and Wage-Weighted Lottery, Penn Wharton Budget Model
- DHS Proposes a $103,265 H-1B Filing Fee, Buda Law Group
- US to Restrict H-1B Workers' Green Card Applications, BNN Bloomberg
- How H-1B Changes Are Fueling Tech Hiring in India, Rest of World
- HIRE Act, S.2976, Congress.gov