2026-10-19 · 8 min read · Visa Ray Team

H-1B in October 2026: the PERM suspension, the $100,000 fee fight and what workers can do

USAH-1BPolicy updates

If you follow US immigration news, "H-1B suspension" has become a headline that covers several different actions at once. They are easy to confuse, and they affect different people. This guide separates what has been confirmed from what is still unclear, explains who is exposed, and lists the lawful options to consider. It reflects reporting and law-firm summaries available around 19 October 2026, and the situation is changing quickly.

The short version

The H-1B visa itself has not been cancelled. Current H-1B holders keep their status and right to work.
On 8 October 2026 the Department of Labor (DOL) suspended eight named employers from the PERM programme, the first step of most employer-sponsored green cards. The employers are Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCLTech and Capgemini.
The $100,000 payment for new H-1B petitions, introduced by presidential proclamation in September 2025 and extended in September 2026, has been blocked by federal courts as an agency-policy matter, but the proclamations themselves remain in force and the litigation is not over.
A wage-weighted H-1B lottery is now the selection method, and a further fee of about USD 103,265 for certain cap-subject petitions has been proposed but not finalised.

1. The PERM suspension of eight employers (8 October 2026)

Vice President JD Vance and Labor Secretary Keith Sonderling announced the action. Cognizant had already been halted in early September 2026, and the October announcement extended the step to seven more companies.

What is confirmed

The DOL will not accept new PERM applications from these employers, and pending PERM cases are on hold, not denied.
Officials linked the move to fraud and compliance investigations and to allegations about layoffs and the displacement of US workers. These are allegations. Microsoft disputes the layoff claims and says most of its US employees are American.
No charges or debarment had been announced in the sources we reviewed.

What is unclear

No written DOL notice had been published at the time of the reports we found, so the exact legal entities covered, the duration and the legal basis are not settled. Commentators point to a DOL regulation (20 CFR 656.31) that allows a pause of up to 180 days for employers under fraud investigation, which can be extended. Legal scholars, including at the Cato Institute, have questioned whether the DOL can suspend a company without a finding of violation.
It is not stated what happens to already-certified PERMs or approved I-140 petitions. Reports say approved I-140s are not being cancelled.

Who is affected

Your situation	Likely exposure
Employed on H-1B at one of the eight, no green card process started	High: the route to a green card through that employer is paused
PERM filed and pending	Case is frozen. Track the date it has been pending, which matters for H-1B extensions beyond six years
PERM certified, I-140 not yet filed	Ask your employer urgently. The I-140 generally has to be filed within the certification's validity period
I-140 approved	Strongest position. An I-140 approved for 180 days or more generally keeps its priority date even if the employer later withdraws it
H-1B holder at any other employer	Not directly restricted, but the list grew from one company to eight within a month, so more could follow
H-4 spouse	Work authorisation can depend on an approved I-140 or on H-1B time beyond six years, so check your EAD dates

Many H-1B workers rely on a pending PERM or an approved I-140 to extend their stay beyond the six-year limit. That is the main way a PERM freeze can hurt H-1B holders even though their visa status is untouched.

2. The $100,000 H-1B payment

A proclamation signed on 19 September 2025 (Proclamation 10973) suspended entry of certain H-1B workers unless a USD 100,000 payment accompanied the petition. It was aimed at new petitions for workers outside the US. Existing H-1B holders, valid visa holders re-entering and ordinary extensions inside the US were not the target. A further proclamation on 18 September 2026 extended the measure to 21 September 2027.

Court status, according to law-firm summaries:

8 June 2026: a federal court in Massachusetts vacated the agency policies implementing the payment. The First Circuit declined to pause that ruling on 24 July 2026.
30 September 2026: a federal court in Northern California (Global Nurse Force v. Trump) vacated the implementing policies and barred their enforcement, including under the 2026 extension, until the agencies complete notice-and-comment rulemaking.
The court did not strike down the proclamations and did not decide whether the President had the authority to impose the payment. A federal court in Washington, D.C. had upheld the payment in December 2025, and that decision is under appeal.
Reports say the government appealed the California ruling to the Ninth Circuit on 9 October 2026 and sought a stay. Check the current status before you rely on any of this.

Our earlier post on the June 2026 ruling gives background.

Practical meaning: the payment is reportedly not being enforced for now, but agencies could pursue it through rulemaking or win on appeal. Do not pay it, or agree to pay it, without checking current USCIS, State Department and CBP handling with a lawyer.

3. Other changes that affect applicants

Wage-weighted lottery. Since the FY 2027 cap season, registrations are entered more times at higher wage levels (Level 4 four times, Level 1 once). Entry-level candidates have lower odds.
Proposed fee of about USD 103,265. A DHS proposal published on 25 August 2026 for certain cap-subject petitions. Comments closed on 24 September. It is not in force.
Online-presence review for H-1B and H-4 applicants, in place since 15 December 2025, has been linked to longer consular delays, especially in India.
Entry bans by nationality under Proclamation 10998 fully suspend H visas for nationals of a set of countries. Check whether your nationality is listed.
A September 2026 executive order directs agencies to consider employer layoffs in H-1B-related decisions.

How this affects different groups

Workers already in H-1B status: your status stands. Keep your documents current, avoid unnecessary international travel until you have checked your visa stamp and extension basis, and do not resign because of a headline.
Workers at the eight named employers: collect your exact dates (H-1B start, PERM filing, certification, I-140 filing and approval, six-year date) and ask your employer, in writing, for the status of your case.
People abroad hoping for a new H-1B: expect lower lottery odds if your wage level is low, possible consular delays, and uncertainty over the payment. Employers may be more cautious about sponsoring from abroad.
Students and recent graduates: changing status from F-1 or OPT to H-1B from inside the US was generally described as outside the payment requirement, but confirm this with your university's international office.
Employers: model several scenarios for the next cap season: no payment, the payment restored, the proposed fee finalised, or both.

Lawful ways to plan around the disruption

These are legitimate alternatives, not loopholes. Each has its own eligibility rules, so confirm with the official source or an immigration lawyer.

Cap-exempt H-1B employers. Universities, affiliated non-profits and some non-profit or government research organisations can file H-1Bs outside the annual lottery. Check how the payment and fee rules treat them.
Change of status inside the US. Moving from F-1 or OPT to H-1B without leaving the country was generally described as avoiding the payment requirement.
Employment-based green card routes that do not need PERM. EB-1A (extraordinary ability), EB-1B (outstanding researchers, employer filing needed) and EB-2 NIW (national interest waiver) skip labour certification. They still depend on priority dates and the monthly Visa Bulletin.
O-1 visa for people with extraordinary ability, which is not subject to the lottery.
L-1 visa for employees transferring from a related company abroad, after the required period of employment with it.
Treaty and trade visas if you qualify: TN (Canadian and Mexican citizens), E-3 (Australian citizens) and H-1B1 (Chile and Singapore).
Job change. If a PERM freeze blocks your green card path, moving to an employer that is not affected may restart the process, though you generally restart the green card steps.
Look beyond the US. Canada, the United Kingdom, Germany and others run skilled-worker routes that some H-1B applicants now consider as a backup. See our Canada guide.

What to do this week

Write down every date in your status and green card timeline.
Ask HR or your sponsoring employer in writing whether your entity is covered and what the plan is.
Check whether you have an approved I-140.
Check your visa stamp, I-94 and six-year date before any international trip.
Book a consultation with a licensed immigration attorney, and be wary of anyone promising to "lift" a suspension for a fee.
Follow official sources: USCIS, the DOL, the State Department and the Federal Register.

For a structured look at US options for your profile, see our United States guide, or run a free assessment.

Visa Ray is a rule-based reference tool, not a law firm. Rules and fees change, so always confirm current figures with the official government source before you apply. You can run a free assessment on Visa Ray to see which pathways fit your profile.