Trump Executive Order on H1B: What Most People Get Wrong

If you’re sitting in an HR office or a tech hub right now, the vibe is... tense. Honestly, that’s putting it lightly. Since late 2025, the conversation around the Trump executive order on H1B has shifted from "political posturing" to a very expensive, very real headache for thousands of companies.

We aren't just talking about a few extra forms anymore. We’re talking about a $100,000 "entry fee" for new workers coming from abroad. Yeah, you read that right. Six figures just to get a candidate through the door.

The $100,000 Sticker Shock

Basically, the centerpiece of the "Restriction on Entry of Certain Nonimmigrant Workers" proclamation, signed in September 2025, is this massive fee. If you’re a U.S. employer and you want to bring in an H-1B worker who is currently outside the country, you have to pony up $100,000 per petition.

It’s a "shakedown." At least, that’s what some Silicon Valley execs are calling it behind closed doors. The administration, however, frames it as a way to "level the playing field" for American workers. The logic? If a company is willing to pay a $100k surcharge, that worker must actually be essential. If they aren't, the company will just hire an American.

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But for a small AI startup with $2 million in seed funding, $100k is a massive chunk of their runway. It basically prices them out of the global talent market.

Who actually has to pay?

It’s not everyone. This is where people get confused.

1. New H-1B petitions for people outside the U.S.: Yes, you pay.
2. H-1B Extensions: No, the fee doesn't apply to renewals (yet).
3. Change of Employer (Transfers): If the worker is already in the U.S. on a valid visa, you generally don't pay the $100k, but you’ll face way more scrutiny than before.
4. Change of Status: If a student is here on an F-1 and moves to H-1B, they are usually exempt from this specific "entry" fee because they are already physically present in the States.

The End of the Random Lottery

For years, the H-1B lottery was exactly that—a lottery. It was a giant digital hat. You threw your name in, and if you were lucky, you got picked. It didn't matter if you were a genius rocket scientist or an entry-level coder; your odds were the same.

That’s dead.

Starting February 27, 2026, the random lottery is being replaced by a wage-based ranking system. The Department of Homeland Security (DHS) is now prioritizing the "best and brightest," which in government-speak means the people getting paid the most.

How the new selection works

They use four "Wage Levels" based on Department of Labor data.

• Level IV (High Experience): These folks are the VIPs. Under the new rules, they might get entered into the selection pool four times. Their chances of being picked? Nearly 100%.
• Level I (Entry Level): This is where it gets grim. If you’re a recent grad or an entry-level analyst, you’re only entered once. Your odds have plummeted to about 15%.

It’s a massive shift. The administration wants to kill the "outsourcing" model where companies bring in thousands of lower-paid workers. But the collateral damage is the "junior talent" pipeline. If you can’t hire the future stars when they’re young, how do you grow them?

"Project Firewall" and the Reality of 2026

There’s a new term floating around immigration law offices: Project Firewall. It’s basically the "extreme vetting" wing of this executive order.

If you’re applying for an H-1B now, expect a deep dive into your digital life. Consular officers are now routinely asking for social media handles and requiring applicants to set their profiles to "public" during the vetting period. They are looking for anything that contradicts the "specialty occupation" claim or suggests the worker might be a security risk.

And the site visits? They’ve gone through the roof.
Fraud Detection and National Security (FDNS) officers aren't just checking if the office exists anymore. They are showing up at home offices for remote workers. They are asking to see organizational charts to see if an H-1B worker is actually doing "specialty" work or just doing basic tasks that a local grad could do.

The Legal Battles (Is this even allowed?)

Naturally, the Chamber of Commerce and several universities sued. They argued the President doesn't have the authority to just "invent" a $100,000 fee.

But on December 23, 2025, a federal judge in D.C. (Beryl Howell) basically said, "Yes, he can." The ruling stated that the President has broad authority under the Immigration and Nationality Act (INA) to restrict entry if he deems it "detrimental to the interests of the United States."

There are still appeals pending, and a few California courts have issued narrow stays, but for now, the law of the land is: Pay up or stay out.

What Happens to the Tech Industry?

We are already seeing the "Canada Effect."
Microsoft and Google have started shifting more roles to Vancouver and Toronto. It’s the same time zone, the talent is great, and the Canadian government is practically rolling out a red carpet while the U.S. builds a digital wall.

Honestly, the Trump executive order on H1B is doing exactly what it was designed to do—it's shrinking the program. Whether that actually helps "American workers" is a debate that usually depends on who you ask. If you're a mid-career dev in Ohio, maybe you see less competition. If you're a tech CEO in San Jose, you're looking at a talent drought.

Practical Steps for 2026

If you’re navigating this mess right now, "wait and see" is a terrible strategy. You need to be proactive.

For Employers:

1. Audit your Wage Levels immediately. If you’ve been filing everyone at Level 1 to save money, those days are over. You won't win the lottery. You need to budget for Level 3 or 4 salaries if you want a guaranteed seat.
2. Set aside the "Surcharge Fund." If you absolutely need someone from overseas, that $100k fee needs to be in the budget now. It’s a cost of doing business, like a tax.
3. Look at "Change of Status" candidates. Focus your recruiting on international students already in the U.S. (F-1/OPT). Since they are already here, you can often bypass the most restrictive "entry" hurdles of the proclamation.

For Workers:

1. Clean up your social media. It sounds like "Big Brother," but it’s the reality. Don't give a consular officer a reason to flag your file.
2. Push for higher wages. This is the one silver lining. To get your visa approved, your employer has to prove they are paying you at the top of the scale. Use that as leverage.
3. Have a Plan B. Whether it's an O-1 visa (for "extraordinary ability") or a transfer to a Canadian branch, don't put all your eggs in the H-1B basket this year.

The landscape has changed. It's not just "tougher" to get a visa; it’s a completely different game with a much higher buy-in. Stay informed, keep your documentation airtight, and expect the unexpected.

Immediate Action Items

• Verify Your Petitioner Category: Check if your company qualifies for any "National Interest" exemptions. These are rare, usually reserved for healthcare or defense, but they waive the $100,000 fee.
• Review LCA Compliance: With the surge in FDNS site visits, ensure your Labor Condition Application (LCA) accurately reflects current remote work addresses to avoid immediate revocation.
• Update 2027 Lottery Strategy: Since the wage-based selection begins in February, re-evaluate all pending H-1B registrations to see if salary adjustments can bump candidates into higher selection tiers.