H-1B FY 2027 Alert: The New "Weighted" Lottery & $100k Fee Shock

If you are an international professional working in the United States, the next four weeks will likely determine where you live for the next three years. The FY 2027 H-1B registration season isn't just another annual cycle of paperwork. It marks the end of the pure lottery system we've lived with for a decade.

On January 30, 2026, USCIS confirmed the initial registration period opens at noon ET on March 4, 2026. But the dates are the least interesting part of the announcement. The real story—the one that should worry some and relieve others—is the start of the "weighted selection" rule on February 27, 2026, combined with a financial reality that effectively splits the applicant pool in two.

For F-1 students hoping to switch to H-1B status, or professionals looking to renew, the rules of engagement just shifted. The days of equal probability are over. Your salary level and your physical location now matter as much as your skills. As the American Immigration Lawyers Association (AILA) 2026 Practice Alert put it, this is "the most significant structural change to the H-1B program since the 1990 Act."

At MyCheck, we see the anxiety this uncertainty creates. Tracking a case number is passive; understanding the new probability model is active. Here is exactly what is changing and how it affects your application strategy right now.

TL;DR: The FY 2027 Snapshot

• Registration Window: Opens March 4, 2026 (noon ET) and closes March 19, 2026 (noon ET).
• The Big Change: A new "weighted" lottery replaces random selection. Higher wage levels (Level IV) get 4 entries; Level I gets 1 entry.
• The Hidden Cost: A $100,000 fee now applies to H-1B petitions for beneficiaries outside the U.S. (Consular Processing).
• Fee Hike: Premium Processing for Form I-129 jumps to $2,965 on March 1, 2026.
• Result: Expect notifications by March 31, 2026.

The Critical Timeline: March 4–19, 2026

USCIS has a history of technical glitches during opening days, so timing matters. The window opens strictly at 12:00 PM Eastern on Wednesday, March 4. It closes just 15 days later on March 19.

Do not wait until March 18.

While the registration fee remains $215 per beneficiary, the system load often causes slowdowns in the final 48 hours. Historical data from the USCIS FY 2025 Annual Report shows that 34% of all registrations are attempted in those final two days, leading to predictable server latency. If your employer or attorney encounters a portal error on the last day, you have no recourse. We recommend finalizing all beneficiary data in the USCIS online account by March 10. Give yourself a buffer.

The New "Weighted" Lottery: Why Wage Levels Now Dictate Odds

This is the shift keeping immigration lawyers awake at night. Effective February 27, 2026, the randomness of the H-1B lottery is being curbed. Under the final rule released by DHS in December 2025, a single registration no longer equals a single chance.

Weighted Selection — A revised lottery algorithm where the number of entries assigned to a beneficiary corresponds to their Department of Labor (DOL) wage level, favoring higher-paid positions over entry-level roles.

USCIS now assigns "weights" based on the wage level associated with the position:

• Level I (Entry): 1 lottery entry
• Level II: 2 lottery entries
• Level III: 3 lottery entries
• Level IV (Fully Experienced): 4 lottery entries

The math here is brutal. According to the DHS Wage Rule Analysis (Dec 29, 2025), a Level IV candidate now has a 400% higher probability of selection compared to a Level I entry-level analyst. Projections suggest that Level I candidates—who previously made up 31% of the selected pool—may see their selection share drop to under 8% in FY 2027.

Why this matters: If you are a fresh graduate on OPT being offered a Level I salary, your statistical chance of selection has dropped significantly compared to previous years. It forces a difficult conversation with your employer: can the position justify a Level II or III wage? If not, the algorithm is working against you.

Matthew Tragesser, a spokesperson for USCIS, stated explicitly that this system is designed to "incentivize American employers to petition for higher-paid, higher-skilled foreign workers." The message is clear: the H-1B is becoming a senior-talent visa.

The "Hiring Divide": The $100k Fee Advantage for F-1 Students

While everyone focuses on the weighted lottery, a Presidential Proclamation from September 2025 is quietly reshaping who gets hired.

For the FY 2027 cap, a new $100,000 fee applies to H-1B petitions for beneficiaries located outside the United States requiring consular processing.

Read that again. One hundred thousand dollars.

Consular Processing — The procedure for a beneficiary residing outside the U.S. to apply for an H-1B visa at a U.S. Embassy or Consulate after their petition is approved by USCIS.

However, there is a massive exception: Change of Status (COS) applications are exempt.

This creates a sharp market distortion. An employer can hire an international student already in the U.S. (on F-1 status) for the standard fees. But to hire someone from India, Canada, or Europe who is not currently in the U.S., they must pay a six-figure surcharge.

The takeaway for F-1 students: You have never been more valuable. The "cost of acquisition" for domestic international talent is now $100,000 less than offshore talent. As the Immigration Practice Group at Butzel Long noted in their February 2026 analysis, "U.S.-based international graduates become far more attractive candidates, while employers may be reluctant to sponsor workers abroad due to the substantial additional cost."

If you are interviewing right now, use this leverage. You are the "low-cost" option, even if your salary is high.

Premium Processing & Fee Hikes (March 1 Deadline)

Inflation has hit USCIS fees again. If your employer plans to file a petition, they need to know about the March 1, 2026 deadline for fee increases.

• Premium Processing (Form I-129): Increases from $2,805 to $2,965.
• Premium Processing (Form I-765 for OPT/STEM OPT): Now stands at $1,780.

While the registration fee itself is stable at $215, the backend costs of actually filing the petition (post-selection) are rising. For employers filing dozens of petitions, these $160 increments add up, but they pale in comparison to the $100k offshore fee.

Strategic Advice: What Should You Do?

Information is useless without action. As Stuart Anderson, Executive Director of the National Foundation for American Policy (NFAP), advises: "In a weighted system, the wage level is the single most determinate factor of success—more so than the candidate's degree or the employer's prestige."

Here is how to position yourself before March 4:

1. Audit Your Wage Level: Don't guess. Ask your attorney or HR representative explicitly: "Is this petition being filed at Level I or Level II?" If it's Level I, ask if the job duties can undeniably justify a Level II classification. The difference is literally double the lottery tickets.

2. Verify Your "In-Country" Status: Ensure your physical presence in the U.S. is documented to avoid any confusion regarding the $100k consular fee. Your value proposition relies on being a "Change of Status" case.

3. Prepare for a Wait: Selection notifications are expected by March 31, 2026. If you are selected, the filing window begins April 1. If not, you need a Plan B immediately—whether that's STEM OPT extension, Day 1 CPT, or an O-1 visa evaluation.

Frequently Asked Questions

Q: Does the weighted lottery apply to Master's Cap petitions?

Yes. The weighted system applies to both the Regular Cap and the Master's Cap. A Level IV candidate with a Master's degree effectively gets the highest possible statistical advantage. According to USCIS data (2025), Master's Cap filings typically account for 38% of all registrations; under the new rule, high-wage Master's candidates are projected to have a near 75% selection rate.

Q: If I am on F-1 OPT, do I have to pay the $100,000 fee?

No. The $100,000 fee (per the Sept 2025 Proclamation) applies to beneficiaries outside the U.S. requiring consular processing. Applicants already in the U.S. filing for a Change of Status are exempt, making F-1 holders significantly cheaper for employers to sponsor.

Q: When will I know if I was selected?

USCIS expects to send selection notifications to online accounts by March 31, 2026. You will not receive an email directly; your status in the MyCheck app (linked to your case) or the USCIS portal will change to "Selected." Historically, 60% of notifications arrive in the first 48 hours of the announcement window.

Q: Can I register through multiple employers to increase my odds?

No. The "beneficiary-centric" rule implemented last year prevents this. You are identified by your passport/travel document number. Multiple registrations for the same beneficiary are consolidated into a single unique entry—though that entry now carries weight based on the highest wage level offered among your valid job offers.