H-1B and L-1 Visa Holders At Risk: How a Policy Change Could Impact Global Talent

If you manage global talent, the past twelve months have been a compliance sprint. The U.S. immigration landscape has shifted more rapidly than at any point in recent memory — and two changes in particular are reshaping how mobility teams manage their international assignees.

First: the $100,000 H-1B petition fee, signed into effect by presidential proclamation on September 19, 2025. Second: the rollback of the 540-day Employment Authorization Document (EAD) automatic renewal extension, which took effect October 29, 2025, putting hundreds of thousands of work permits at risk of lapsing before USCIS can process their renewals.

Together, these changes don’t just affect your immigration budget. They affect your ability to hire, retain, and deploy international talent — and they require a policy response that goes well beyond forwarding a USCIS notice to your legal team.

This post breaks down exactly what changed, who it affects, and what mobility programs need to do now.

What changed: a policy snapshot

Note: Immigration policy is evolving quickly. CapRelo recommends verifying all compliance requirements with qualified immigration counsel before taking action. This post reflects guidance available as of June 2026.

The $100,000 H-1B fee: what it means in practice

On September 19, 2025, President Trump signed a proclamation requiring a $100,000 payment for certain H-1B petitions — effective two days later. The speed of implementation left many employers scrambling.

Here is what the fee applies to and what it does not.

Who is subject to the $100,000 fee:

• New H-1B petitions filed on or after September 21, 2025, on behalf of beneficiaries who are outside the United States and do not hold a valid H-1B visa
• Petitions requesting consular notification, port of entry notification, or pre-flight inspection for workers currently inside the U.S.
• Cases where USCIS denies a requested change of status or extension and the worker must pursue the visa from abroad

Who is exempt:

• In-U.S. H-1B extensions, amendments, and changes of status — if approved while the worker remains in valid status inside the U.S.
• H-1B petitions filed before 12:01 a.m. Eastern on September 21, 2025
• Workers holding currently valid H-1B visas who are traveling internationally
• Workers whose change-of-status petition is approved and who later travel abroad and re-enter on that approved petition

Payment is made through pay.gov before the petition is filed with USCIS. Proof of payment — or evidence of an approved exception — must be submitted with the petition. USCIS will deny petitions that include neither.

What this means for mobility budgets: a company sponsoring 10 new H-1B workers from abroad annually now faces up to $1 million in additional petition costs. HR mobility teams will need to revise immigration budgets, revisit hiring decisions for international candidates, and work closely with legal counsel on case-by-case exemption eligibility.

CapRelo perspective: For many of our clients, this fee has triggered an immediate review of their global talent pipeline — including which roles truly require H-1B sponsorship from abroad versus candidates who could enter through other pathways. That kind of strategic realignment is exactly where CapRelo’s immigration and mobility program advisory support adds value.

The EAD renewal reversal: a risk most employers underestimated

The second major change may carry even more immediate operational risk for global mobility teams: the reversal of the 540-day automatic EAD renewal extension.

Here is the background. In January 2025, a final DHS rule took effect granting automatic 540-day work authorization extensions upon EAD expiration, while renewal applications were pending. The policy was designed to address USCIS’s chronic processing backlogs. On October 29, 2025, USCIS ended that automatic extension for most EAD categories. Workers filing EAD renewals on or after that date revert to the 180-day automatic extension — or in some cases, have no automatic extension at all.

The exposure is significant. As of November 2025, more than 900,000 EAD applications were pending with USCIS for more than six months. Workers whose EADs expire before USCIS adjudicates their renewals face an employment authorization gap — and employers who continue to employ them during that gap face serious compliance liability.

Who is most affected:

• H-1B spouses (H-4 EAD holders) — particularly impacted, as spouses of E and L nonimmigrant holders are only authorized to work until their I-94 expires and do not receive automatic extensions if their status extension is pending
• Workers with pending I-765 EAD renewal applications filed on or after October 29, 2025
• L-2 and E-visa derivative spouses whose I-94 expirations precede USCIS adjudication

What to do now: Work with your immigration counsel to audit all EAD expiration dates across your assignee population. Any worker within six months of EAD expiration should have a renewal filed immediately. Waiting is not a compliance strategy.

The workforce behind the policy: who holds H-1B visas

It is worth putting a human face on these policy changes. Approximately 500,000 H-1B visa holders are currently working in the United States. Based on FY2024 data from DHS and USCIS:

• 71% are from India; 11.7% are from China; the remaining 17.3% represent a wide range of countries
• The overwhelming majority work in computer-related occupations — programming, systems analysis, IT architecture
• Major employers include large technology firms, outsourcing companies, universities, financial services, and manufacturers
• Median salary for a newly approved H-1B holder in computer-related roles: $101,000. For more experienced holders: $135,000

For context: the $100,000 petition fee represents nearly the total first-year salary for a median newly approved H-1B worker. The financial and human stakes of these policy changes are substantial for both the employers who sponsor them and the professionals who depend on that sponsorship to build careers in the U.S.

What’s changing in the H-1B lottery for FY2027

Effective February 27, 2026, a new weighted lottery selection system applies to the FY2027 H-1B cap registration season. The rule, finalized by DHS on December 23, 2025, prioritizes higher-skilled and higher-paid applicants while maintaining access at all wage levels.

For mobility teams building long-term international talent pipelines, this is an important strategic shift. The lottery increasingly favors specialized, high-compensation roles. Organizations competing for the same H-1B talent pool will need to be more deliberate about which positions they sponsor and how they structure compensation packages.

What your mobility program needs to do now

Policy uncertainty is not a reason to pause — it is a reason to build a more resilient program. Here is where to focus:

• Audit your EAD population. Identify every worker with an EAD expiring in the next six months. File renewals immediately and set calendar alerts for 180-day extension windows.
• Revisit your H-1B international hiring pipeline. Identify which open roles require sponsoring a candidate currently outside the U.S. — and therefore trigger the $100,000 fee. Prioritize candidates already inside the U.S. on valid status where possible.
• Update your immigration budget. The $100K fee must be reflected in hiring cost models now. For high-volume H-1B employers, the budget impact is immediate and material.
• Communicate proactively with affected transferees. H-1B and H-4 EAD holders are anxious. Timely, accurate communication from HR — and access to support around the clock — materially reduces transferee stress. CapRelo’s AI-powered relocation assistant Moxie provides 24/7 guidance, helping transferees navigate uncertainty without waiting on hold.
• Evaluate alternative visa pathways. For roles where the $100K fee makes H-1B cost-prohibitive for overseas candidates, O-1 and J-1 pathways may offer viable alternatives depending on the role and candidate profile. Work with immigration counsel on a case-by-case basis.
• Monitor legal challenges. As of late 2025, at least two lawsuits were filed challenging the $100K proclamation fee, including one by the U.S. Chamber of Commerce. Plan for current requirements in the meantime, but stay informed as outcomes could affect future obligations.

For a broader look at how to navigate work visa processes across multiple countries, see our step-by-step work visa application guide.

Frequently asked questions: H-1B visa changes 2025

Does the $100,000 H-1B fee apply to extensions and renewals?
No. USCIS has clarified that the fee does not apply to in-U.S. H-1B extensions, amendments, or changes of status where the worker remains in valid status inside the United States and the petition is approved. It applies only to new H-1B petitions on behalf of beneficiaries who are outside the U.S. and do not hold a current valid H-1B visa.

Can workers with valid H-1B visas still travel internationally?
Yes. The proclamation does not restrict international travel for workers who currently hold valid H-1B visas. Workers re-entering the U.S. on a valid H-1B visa are not subject to the $100,000 fee.

What happened to the 540-day EAD automatic extension?
USCIS ended the 540-day automatic EAD renewal extension effective October 29, 2025, for most EAD categories. Workers filing EAD renewals on or after that date revert to the 180-day automatic extension period — or in some cases, no automatic extension at all. With more than 900,000 EAD applications pending beyond six months as of late 2025, this is a significant compliance exposure for employers.

What is the new H-1B lottery weighting system?
Effective February 27, 2026, a new weighted lottery selection process applies to the FY2027 H-1B cap season. The rule, finalized by DHS in December 2025, prioritizes higher-wage and higher-skilled applicants while still maintaining access at all wage levels.

How can CapRelo help with H-1B and immigration compliance?
CapRelo partners with trusted immigration and visa specialists to provide end-to-end relocation management that includes immigration coordination, policy consultation, and proactive monitoring of regulatory changes. We help mobility teams stay ahead of shifts like the ones described in this post — and we support affected transferees and their families through the uncertainty that comes with rapidly evolving policy.