Disclaimer: This article is for informational purposes only and does not constitute legal advice under U.S. immigration law. PassRight is not a law firm. For personalized guidance, consult a qualified immigration attorney.



The H-1B Just Got A Lot More Complicated

2025 brought some of the biggest changes to H-1B in years. New fees. Stricter lottery rules. Longer wait times. And in September, a $100,000 supplemental fee that caught everyone off guard.

For tech founders and startups trying to hire international talent, these changes aren’t just annoying, they’re reshaping how you need to think about immigration. The question isn’t whether H-1B is still useful (it is, for some people). It’s whether it’s still the best option for your situation in 2026. We need to be mindful as well that 2026 might bring new information. Thus, this is so important to follow the USCIS updates.

What Actually Changed Last Year

The 2025 reforms hit from multiple directions. Some were announced early in the year. Others dropped mid-cycle and forced companies to scramble.

Fees

USCIS’s 2024-25 fee rule brought the I-129 H-1B filing fee to $780 and added a $600 Asylum Program Fee for most employers (smaller companies pay $300, nonprofits get a pass). The lottery registration fee went from $10 to $215 starting with the FY 2026 cap season. Premium processing, which used to count calendar days, now counts business days so your “15 days” is actually three weeks.

USCIS has noted that Asylum Program Fee instructions may change due to ongoing litigation, so confirm the current amounts before filing.

The real shock came in September. Under USCIS’s Proclamation guidance, new H-1B petitions filed on or after September 21, 2025 must include a $100,000 supplemental payment as a condition of eligibility. Extensions and amendments are generally exempt. If you’re bringing someone in fresh from abroad, you’re looking at six figures in government fees alone. More answers you will find here.

Lottery & Selection

The unique beneficiary (beneficiary centric) selection system, introduced for the FY2025 cap season, continued into the FY2026 cap season (March 2025 registration). That means your passport number, not your employer’s registration, determines your lottery entry. You only get one shot per year, no matter how many companies try to sponsor you. It cuts down on gaming the system, but it also means you cannot improve your odds by having multiple employers register you.

USCIS has talked about wage based selection before as a possible H-1B reform direction, but FY2026 still uses the beneficiary centric lottery without wage weighting. No wage based rule is actually in effect yet.

Forms & Filing Rules

There’s a new Form I-129. If you accidentally use the old one, your petition gets rejected outright. No exceptions.

Processing & RFEs

USCIS says they’re working on the backlog. They’ve hired more staff. They’re upgrading systems. But employers are still seeing longer timelines, more RFEs (Requests for Evidence), and more uncertainty than they’d like.

Put it all together and you’ve got an H-1B program that’s more expensive, more restrictive, and harder to predict than it was two years ago.

Why Founders Are Rethinking H-1B This Year

A lot of startup founders we talk to are asking the same question: is H-1B even worth it anymore?

For early-stage companies, the new fees are brutal. Spending $100,000 if someone’s abroad is a real budget hit when you’re trying to stretch a seed round. And that’s before you factor in legal fees, which aren’t getting cheaper either.

The lottery makes it worse. Even if you’re willing to pay, there’s no guarantee you’ll get picked. Odds vary by year, but they’ve hovered around 25-30% recently for the general cap. If you’re planning a product launch or trying to fill a critical role, “maybe we’ll get lucky in March” isn’t a great hiring strategy.

Then there’s the wage thing. USCIS has talked about prioritizing higher-paid positions, but nothing’s final yet. Still, if you’re hiring mid-level engineers at normal market rates, you’re probably wondering how this plays out.

So what are people doing instead? Some are looking at O-1. Some are exploring EB-1A for founders and senior hires. Others are hiring remotely and figuring out visa stuff later. A few are even reconsidering whether the U.S. is the right market to build in, though that’s still the minority.

The point is, H-1B used to be the default. Now it’s one option among several, and often not the best one.

Cost & Timeline Breakdown: H-1B vs O-1 vs EB-1A

Here’s what you’re actually looking at in 2026:

Visa TypeGovernment Fees (approx., excluding attorney fees)How Long It TakesDo You Need the Lottery?Green Card Path
H-1B$7,000–$10,000 (up to $100K+ with supplemental fee)3–6 months (15 business days with premium)YesEB-2 or EB-3, employer-sponsored
O-1$1,000.00–$5,0002–4 months (15 business days with premium)NoEB-1A, self-petition
EB-1A$1,500–$5,0008–12 months for I-140 (premium available; green card step follows)NoThis is the green card

H-1B: Expensive and Uncertain

If you’re a large employer hiring someone who’s already in the U.S., you’re typically looking at around $7,000-$10,000 in government fees. These are USCIS government filing fees paid by the petitioner/employer. That includes the $780 filing fee, the $600 Asylum Program Fee, and potentially other add-ons depending on your company size.

If the person is abroad, add the $100,000 supplemental fee. Yes, really.

You also have to win the lottery. No way around that. And even if you do, processing takes 3-6 months under normal timelines, or about three weeks if you pay for premium.

The H-1B ties the person to your company and their specific role. If they want to switch jobs or if you need to change their responsibilities significantly, you’re filing amendments or new petitions. Not the end of the world, but it’s friction.

O-1: Faster, No Lottery, But You Need the Credentials

The O-1 visa is a work visa for people with “extraordinary ability.” That sounds intimidating, but it’s more accessible than you’d think if someone has the right background.

Filing fees are much lower around $3,000-$5,000 total in government fees, including premium processing if you want it. No lottery. You file, USCIS reviews, and you get a decision. Processing usually takes 2-4 months, or 15 business days with premium.

The O-1 also gives you more flexibility. You can work for multiple employers at once (if structured correctly), and there’s more room to pivot between roles. For founders, you can even petition yourself through a U.S. agent or your own startup entity in some cases.

The catch? You need strong evidence. Publications. Patents. Press coverage. Awards. Leadership roles. High compensation relative to peers. If someone’s been working quietly for five years without much external recognition, O-1 might be a stretch. But if they’ve been building in public, conference talks, GitHub contributions, research papers, media mentions it’s often doable.

EB-1A: The Green Card Path for People with Strong Profiles

EB-1A is a green card category, not a temporary visa. It’s for people who’ve demonstrated sustained national or international acclaim in their field.

The evidence bar is similar to O-1, but the framing is different. You’re not just showing you’re good at what you do. You’re showing you’re in the top tier of your field and that your work has had a significant impact.

For startup founders who’ve raised funding, gotten press, filed patents, or built products with measurable traction, EB-1A is often a natural next step after O-1. You don’t need an employer to sponsor you. You petition yourself. And once approved, you’ve got a green card. No extensions, no renewals, no dependence on a specific job.

The process takes longer up front: 8-12 months for the I-140 petition, though premium processing can speed that up. Then you do adjustment of status if you’re in the U.S., or consular processing if you’re abroad. The total timeline is usually 1.5-2 years, but you end up with permanent residency.

Cost-wise, you’re looking at $3,000-$5,000 in government fees, plus legal fees. Comparable to O-1, way cheaper than H-1B if you’re factoring in the new supplemental fee.

If EB-1A feels early for your profile, O-1 can be the bridge while you build the evidence record, many founders do O-1 first, then transition to EB-1A 12-18 months later.

Who Qualifies for What

H-1B

H-1B is the easiest to qualify for on paper. You need a job offer in a “specialty occupation”, basically something that requires at least a bachelor’s degree. If you studied computer science and you’re being hired as a software engineer, that works. If you studied biology and you’re being hired as a data analyst, you’ll need to explain the connection, but it’s often doable.

O-1

O-1 requires you to show “extraordinary ability.” USCIS wants to see things like:

  • Awards or recognition in your field (doesn’t have to be a Nobel Prize, but it should be meaningful)
  • Published work: research papers, articles about you in credible outlets, contributions to open-source projects that got attention
  • Membership in professional associations that require high achievement
    Evidence that you’ve been paid well relative to others in your space
  • Letters from experts in the field saying you’re exceptional


You don’t need all of those, but you need enough to make a compelling case. For someone coming out of a top PhD program with a few publications and conference talks, O-1 is often reachable. For a mid-career founder who’s raised a seed round and gotten some TechCrunch coverage, same deal.

EB-1A

EB-1A has a similar standard, but you’re trying to show sustained acclaim over time. The classic test is either one major internationally recognized award (think Pulitzer, Nobel, Olympic medal) or meeting at least three out of ten criteria:

  • Major awards or prizes in your field
  • Membership in associations that require outstanding achievement
  • Published material about you in major media
  • Evidence of original contributions of major significance to your field
  • Authorship of scholarly articles
  • Display of your work at exhibitions or showcases
  • Leadership or critical roles in distinguished organizations
  • High salary or remuneration
  • Commercial success in the arts
  • Judging the work of others in your field

For startup founders, this usually comes down to: have you raised real funding? Have you been covered in major press? Do you have patents or products with actual traction? Have you spoken at big conferences or been asked to judge competitions? Are you making well above market rate for your role?

If several of those check out, EB-1A’s worth looking into.

Flexibility: What You Can and Can’t Do with Each Visa

H-1B visa

H-1B locks you to your employer and your specific job. If you want to switch companies, your new employer has to file a new H-1B petition (though you can start working once it’s filed, thanks to portability rules). If your current employer wants to change your role significantly, they need to file an amendment. You can’t freelance. You can’t start a side company unless it sponsors you separately. It works, but it’s rigid.

O-1 visa

O-1 gives you more room to move. You can work for multiple employers at the same time if each one petitions you (or if you structure things through an agent). You can take on consulting projects. If you’re a founder, you can petition yourself through your own startup as long as there’s a proper structure in place. It’s not unlimited freedom, but it’s a lot more flexible than H-1B.

EB-1A green card

EB-1A is a green card. Once you have it, you can work wherever you want, start whatever companies you want, and pivot as much as you want. There’s no employer tying you down, no need for extensions, no visa status to maintain. You’re a permanent resident. That’s the whole point.

For founders especially, that last point matters. If you’re building a company, you want to focus on building the company, not worrying about whether your visa status is going to survive your next pivot.

Green Card Strategy: What Comes After Each Visa

H-1B Visa

H-1B is dual-intent, which means you can pursue a green card while on it. The typical path is employer-sponsored EB-2 or EB-3. Your company files a PERM labor certification, then an I-140 petition, then you do adjustment of status. The whole process takes 1-3 years depending on your country of birth and priority date.

The catch is you’re dependent on your employer the whole time. If you get laid off or want to switch jobs mid-process, things get complicated. You can sometimes port your green card application to a new employer, but it’s messy and not always possible.

O-1 visa

O-1 doesn’t directly lead to a green card, but it sets you up well for EB-1A. A lot of the evidence you build for O-1 publications, press, awards, high compensation carries over to EB-1A. And since EB-1A is self-sponsored, you’re not dependent on an employer. You can file it while on O-1 and, if approved, transition directly to permanent residency.

EB-1A green card

EB-1A is the green card. Once you’re approved, you’re done. No more visa renewals, no more dependence on employer sponsorship, no more wondering if policy changes are going to upend your life. You’re a permanent resident, and unless you commit a serious crime or abandon your residency, that’s not changing.

Who Should Consider What in 2026

If you’re an early-stage startup founder trying to hire someone, here’s how to think about it:

H-1B usually works when:

  • The person is already in the U.S. on OPT or another status and needs a bridge to something longer-term
  • They don’t have a strong enough profile yet for O-1
  • You’re okay with the lottery risk and can afford to wait until next year if it doesn’t work out
  • You’re a larger company with a dedicated immigration team and budget

O-1 works well for:

  • The person has strong credentials: PhD, publications, patents, press, awards, high-profile work experience, expert role in the company
  • You need someone now and can’t wait for the lottery
  • You want more flexibility in how they work (multiple projects, consulting, potential founder track)
  • The cost difference matters (it’s often half the price of H-1B)

EB-1A makes sense for:

  • People with sustained high-level achievements over several years
  • Founders, senior technical leaders, or researchers with demonstrable impact
  • Those seeking long-term stability through permanent residency
    Planning 2-3 years out to secure a direct path to a green card

We’ve been seeing more companies skip the H-1B lottery entirely and go straight to O-1 for key hires, especially when they’re hiring PhD grads or people with solid professional track records. For founders, a lot of people now look at EB-1A first if they can meet the bar, since it cuts out all the temporary visa stuff and gets you straight to a green card.

Remote hiring is picking up too. Some companies keep international talent working outside the U.S. for 6–12 months while they collect stronger O-1 evidence, then bring them in once the case is solid. It’s not ideal, but for a critical hire it can be a more predictable path than betting on the lottery.

Bottom Line

H-1B still works for many people, but it’s no longer the default it once was.

If you’re hiring international talent or building your own path as a founder O-1 and EB-1A are often faster, cheaper, more flexible, and more predictable alternatives in 2026.

So the key question isn’t “Can I get an H-1B?” It’s “What’s the smartest immigration move for my timeline and goals?” something worth mapping out with counsel who understands startups.

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