H-1B Visa Landscape Tightens in May 2026 Amidst New Fees and Legislative Proposals

May 2026 marks a period of significant shifts in U.S. immigration policy, particularly impacting H-1B and student visa programs. The U.S. is implementing stricter measures, including a new wage-weighted H-1B selection rule and a substantial $100,000 fee on new H-1B applications. These changes are poised to reshape how companies recruit specialized talent and how universities plan for international enrollment, including those on Optional Practical Training (OPT) (Source 2). The cumulative effect of these policy adjustments and proposed legislative actions points to a more challenging environment for both current and prospective H-1B visa holders.

Proposed Legislative Changes Threaten H-1B and OPT Programs

Recent legislative efforts in Congress aim to drastically alter the H-1B visa landscape. A bill introduced in late April 2026 proposes a three-year pause on new H-1B visas, a reduced annual cap, and the complete elimination of the Optional Practical Training (OPT) program. Such measures would profoundly impact F1 students aspiring to transition to H-1B status, potentially closing a vital pathway for international graduates seeking employment in the U.S. (Source 3). The proposed pause would halt new H-1B applications for an extended period, creating uncertainty for both employers and foreign workers.

Further proposals include a House bill that seeks to establish a $200,000 salary floor for H-1B visas. This high salary requirement, coupled with the potential three-year pause, would severely restrict access to the H-1B program. It would effectively limit H-1B sponsorship to only the highest-paying positions, diminishing future prospects for many OPT students seeking H-1B sponsorship and potentially driving down the number of eligible candidates (Source 4). These legislative discussions highlight a growing sentiment towards tightening skilled worker immigration.

Increased Fees Impact Status Changes and OPT Extensions

Effective March 1, 2026, premium processing fees for several key immigration petitions have seen a notable increase. Petitions such as Form I-539, used to extend or change nonimmigrant status, and Form I-765, for Employment Authorization Documents (EADs) covering OPT and STEM classifications, now cost $2,965 for premium processing. This represents a significant financial increase for individuals seeking expedited processing (Source 5). The rising costs impact individuals undergoing status changes or seeking OPT extensions, adding to the financial burden of navigating the complex U.S. immigration system. This fee hike applies to a broad range of applications critical for maintaining legal status and employment authorization.

Navigating Layoffs: H1B to F1 Change of Status and Day 1 CPT

Amidst these tightening policies and economic uncertainties, H1B visa holders facing layoffs are exploring critical strategies to maintain legal status and continue their careers. One viable option is changing status from H1B to F1, which allows individuals to continue working and studying legally through Day 1 CPT programs. This pathway provides a crucial bridge for those who have lost their H1B-sponsored employment, enabling them to pursue further education while maintaining work authorization (Source 1).

Additionally, Optional Practical Training (OPT) is recommended as a strategic step for international students before pursuing an H-1B visa. OPT provides valuable work experience and a period of employment authorization post-graduation, which can be crucial for securing H-1B sponsorship. Understanding these alternative pathways and planning proactively is becoming increasingly critical given the evolving immigration environment and the potential challenges posed by new legislation and fees (Source 1).