A $100,000 H-1B entry charge went into force in September 2025 , but a new study says it did not stop overseas hiring. The report by John Miano at the Center for Immigration Studies, published April 20, 2026 , finds the fee was largely avoided because many beneficiaries were already inside the United States.

If you are eyeing US work visas, note these key numbers. In 2024 , 54% of H-1B beneficiaries were already in the US on statuses such as F-1 or L-1. The annual H-1B cap of 85,000 remained fully used in the affected 2026 visa cycle.

Domestic Loophole H-1B: Main findings from the Miano study

The study shows employers shifted focus to applicants already in the US who often avoid the top fee tier. That created what analysts call a "domestic loophole": domestic applicants face lower fees, so employers recruit them instead of paying the $100,000 entry charge for overseas hires.

Miano reports fewer lottery entries were filed overall in 2026, which increased the odds for domestic applicants to win a cap slot. Over 70% of H-1B visas continued going to computer and tech roles, keeping the sector dominant in allocations.

Domestic Loophole H-1B — dates, cap and fee at a glance

Fee structure and exemptions

The headline charge targets overseas hires: $100,000 for the entry tier. The study notes many applicants already in the US (for example, on F-1 student or L-1 visas) are often exempt from or avoid the highest fee tiers. That exemption reduced the fee’s intended deterrent effect on hiring from abroad.

Critics and supporters debated the result after publication. Miano’s analysis argues the fee failed to cut the number of new H-1B beneficiaries because the domestic pool stepped in. Experts at other institutes have said even partial drops in overseas hiring are meaningful for policy and labour markets; the discussion remains active.

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