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$100K H-1B Fee: According to a recent study by John Miano, a fellow at the Center for Immigration Studies (CIS), the contentious $100,000 H-1B visa fee hasn't been able to stop foreign workers from joining the American workforce. Miano contends that the impact of the fee is offset by the fact that most H-1B recipients already reside in the US, so avoiding the main deterrent meant to prevent recruiting from outside.
The tax, which went into force in September 2025, was intended to discourage hiring from overseas by making it unaffordable, according to the study, which was published on April 20, 2026. However, Miano notes that 54% of H-1B beneficiaries were already in the country on other statuses, like F-1 student visas, based on statistics from 2024. Employers have simply turned their attention to this current talent pool because these domestic applicants are not subject to the $100,000 "entry" charge.
As a result, all 85,000 of the annual visa allotment are still in use. Miano explains that although fewer lottery entries were submitted this year due to businesses rejecting international applicants, this did not lower the overall number of foreign professionals entering the market; rather, it just increased the "odds" of winning for domestic applicants. This findings have sparked a heated debate with other experts, such as David J. Bier from the Cato Institute, who argue that even a partial reduction in overseas hiring still represents a significant economic shift.
The "Domestic Loophole" in H-1B Hiring
According to the analysis of USCIS data, the fee—implemented to prioritize domestic labor has not led to a decrease in the 85,000 annual visa cap being met.
| Factor | Statistical Insight |
| Current Residents | 54% of H-1B beneficiaries are already in the U.S. (e.g., F-1 students or L-1 holders). |
| Fee Exemption | Applicants already in the U.S. often avoid the highest tiers of the fee structure. |
| Annual Quota | The 85,000 cap remains fully utilized despite the increased financial barrier. |
| Visa Category | Over 70% of visas continue to go to the computer and tech sectors. |
Effect on the Visa Cycle of 2026
The hefty charge for the 2026 H-1B Lottery has paradoxically boosted the chances for legitimate applicants who are already employed in the United States on student or training visas by drastically reducing "duplicate entries" and fraudulent registrations.
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