June 2026 H-1B Updates: $100,000 Fee Struck Down, New Merit-Based Bill Proposed, Wage-Weighted Lottery in Effect

The H-1B visa program is undergoing a period of rapid transformation, with June 2026 marking a pivotal month for policy shifts and legislative proposals. Key developments include a federal court ruling against a significant H-1B fee, the introduction of a new bill aiming to fundamentally reshape the visa's purpose and selection, and the operational impact of the recently implemented wage-weighted lottery system for the fiscal year 2026-27.

Federal Judge Strikes Down $100,000 H-1B Visa Fee

On June 8th, 2026, a federal judge issued a landmark ruling, declaring the $100,000 H-1B visa fee unlawful. This decision comes as a significant relief for employers and applicants, potentially reducing the financial burden associated with the H-1B application process. The fee's legality had been a point of contention, and its removal marks a notable victory for advocates of more accessible immigration pathways. This development was widely reported across legal and immigration news outlets on the same day.

New Bill Proposes Merit-Based System and H-1B Overhaul

A new legislative initiative, the 'American White-Collar Worker Jobs Act of 2026,' was proposed on June 8, 2026, aiming to dramatically alter the H-1B program. This bill seeks to replace the existing H-1B lottery system with a merit-based selection process, prioritizing specific skills and qualifications over random selection. Furthermore, the proposed legislation intends to eliminate the H-1B visa as a direct pathway to permanent residency, fundamentally changing its role in long-term immigration strategies. The bill also includes provisions to shorten the H-1B visa duration from six years to two years and to eliminate the Optional Practical Training (OPT) scheme, which allows international students to gain work experience in the U.S. after graduation. If enacted, these changes would represent a profound shift in U.S. immigration policy for high-skilled workers.

Wage-Weighted Selection Process Now Active for FY2027

The H-1B cap lottery for fiscal year 2026-27 has officially transitioned from a random selection model to a wage-weighted selection process. This new system, implemented by the Department of Homeland Security (DHS) via a final rule, became effective on February 27, 2026, for FY2027 H-1B cap registrations. The initial registration period for this new lottery model ran from March 4, 2026, through March 19, 2026. The core principle of the wage-weighted system is to prioritize higher-paid foreign workers, significantly altering the odds of selection based on salary levels. For instance, Level 4 candidates are estimated to have approximately four times better selection odds compared to Level 1 candidates under this new framework. This shift aims to align H-1B selections more closely with economic contributions and demand for highly compensated roles.

USCIS Guidance and Prevailing Wage Hikes

In related news from June 8, 2026, USCIS clarified its stance on H-1B petitions where the work location might differ from the original registration. The agency stated that it will not deny an H-1B petition solely on this basis, provided the proffered wage meets the Occupational Employment Statistics (OES) wage level for the actual work location. This provides some flexibility for employers in dynamic work environments. Concurrently, the Department of Labor (DOL) is proposing a significant hike to prevailing wages across several key immigration programs, including H1B, H1B1, E-3, and PERM. These proposed increases could further impact employer costs and strategies for hiring foreign talent, making wage compliance an even more critical factor in H-1B petitions.