Court Orders Block 0,000 H-1B Payment; DHS Proposes Ending Deference on Extensions

Two US measures now shape how IT services firms and their workers use the H-1B visa. One changes how the annual cap lottery selects registrations. The other is a 0,000 payment on certain H-1B petitions, and court orders have blocked it. The two measures are at different stages.

The lottery change applies when registrations are chosen. The payment applies to petitions for workers outside the United States under a presidential proclamation, and a proclamation from September 2026 renews that restriction for 12 months. Separately, DHS proposed on 13 October 2026 to end the practice of deferring to earlier approvals when a worker's visa is extended.

How the Wage-Weighted Lottery Changes Selection

The annual cap limits how many new H-1B visas are issued each year. Employers register workers for the cap, and a selection process decides which registrations move forward. A final rule from the Department of Homeland Security (DHS) changes how that choice is made. USCIS says the change moves from random selection to a weighted process that will increase the probability that visas go to higher-skilled and higher-paid workers.

The rule took effect on 27 February 2026 and applies to the FY 2027 cap season.

The weighting is meant to increase the probability that visas go to higher-skilled and higher-paid workers, while keeping the opportunity for employers to secure H-1B workers at all wage levels.

What the 0,000 Payment Requires

The proclamation restricts entry of H-1B workers in specialty occupations unless their petitions are accompanied or supplemented by a 0,000 payment. The requirement has limited exceptions.

The restriction does not apply if the Secretary of Homeland Security determines, in the Secretary's discretion, that the hiring is in the national interest and does not pose a threat to the security or welfare of the United States.

The proclamation says the payment has been made for more than 700 petitions since the original 2025 proclamation took effect.

Court Orders and Whether the Fee Is Being Collected

On 8 June 2026, the US District Court for the District of Massachusetts vacated the fee policy, according to the Yale Office of International Students and Scholars. Yale reports that, as of its 23 September notice, the agency was not collecting the fee and that USCIS states on its website that it will comply with the court's order.

On 24 July, the First Circuit Court of Appeals denied the government's request to pause that ruling while its appeal proceeds.

On 30 September 2026, the US District Court for the Northern District of California vacated the policies that USCIS, DHS and the State Department used to put the fee into effect, according to Envoy Global. The court barred the agencies from enforcing or implementing those policies until they complete notice-and-comment rulemaking.

Yale's notice of 23 September says a separate federal court, in another case, has allowed the fee to stand. Envoy Global reports that the 30 September order prohibits agencies from enforcing the policies. Yale also says the policy is currently unenforceable, so the extension is unlikely to be enforced while the court's order remains in place.

The September 2026 Extension and the IT Staffing Sector

The proclamation takes effect at 12:01 a.m. Eastern daylight time on 21 September 2026 and runs for 12 months, to 21 September 2027. The extension keeps the 0,000 amount in place.

The proclamation refers to the largest IT staffing and outsourcing firms. It says that since the 2025 proclamation took effect, their combined H-1B registrations fell from 24,946 to 2,055, a 92 percent decrease.

It also says consular processing requests dropped by nearly 97 percent between the FY 2025 and FY 2027 cap seasons. The proclamation describes these as requests used to bring workers into the United States.

Two US measures now shape how IT services firms and their workers use the H-1B visa.

DHS Proposal to End Deference for Visa Extensions

Under current practice, USCIS gives weight to an earlier approval when a later extension involves the same parties and facts, unless a material error or change applies. This practice is called deference.

DHS proposed on 13 October 2026 to end that practice. The proposal would apply to every classification that can be extended on Form I-129, including E-1, E-2, E-3, H-1B, H-1B1, H-2A, H-2B, L-1, O-1, P, R-1 and TN workers. Under the proposal, a reviewing officer would assess eligibility afresh instead of relying on the earlier approval.

DHS estimates about 6,000 more requests for evidence a year, by comparing request-for-evidence rates in periods when deference was in effect with periods when it was not.

The proposal was scheduled for Federal Register publication on 14 October 2026. Comments are due 30 days after publication, which would be 13 November 2026 if the proposal is published on 14 October as scheduled. DHS will accept comments only through regulations.gov, docket USCIS-2026-0529.

What the Changes Mean for Hiring, Costs and Offshoring

Where the 0,000 payment applies, it adds that amount to each H-1B petition. Yale's 23 September notice says the agency was not collecting the payment, and that it is unlikely to be enforced while the court's order remains in place.

The weighted selection is meant to increase the probability that higher-skilled and higher-paid workers are selected. The extension proposal would require a fresh eligibility review for every H-1B and L-1 extension, along with the other covered classifications.

For the largest IT staffing and outsourcing firms, the proclamation reports that combined H-1B registrations fell sharply. It also reports a large reduction in consular processing requests.

In short, the sources point to three groups. Employers filing H-1B petitions face the payment where it applies, IT staffing and outsourcing firms are the sector the proclamation names, and workers on H-1B and L-1 extensions would face fresh review if the DHS proposal is finalised.

Two dates come next: the DHS comment deadline of 13 November 2026, if the proposal is published on 14 October as scheduled, and the end of the proclamation's 12-month term on 21 September 2027.