In September 2025, a presidential proclamation added a $100,000 payment to certain new H-1B petitions. A year later, that fee is tied up in federal court, a separate fee of more than $103,000 has been proposed, and the annual H-1B lottery works the same way it always has.
For hiring managers, the exact number matters less than what it reveals: the H-1B route has become impossible to budget with confidence. That is one of the main reasons US companies are moving technical and operational roles to Latin America, where hiring does not depend on a visa at all.
This article reflects the status as of October 2026. Immigration rules are changing quickly, so confirm the current position with immigration counsel before filing any petition.
Where the $100,000 H-1B Fee Stands in October 2026
• September 19, 2025: a proclamation set a $100,000 payment on certain new H-1B petitions filed from September 21, 2025, mainly for workers obtaining their visas abroad. Extensions of stay and changes of status were exempt.
• June 8, 2026: a federal court in Massachusetts vacated the policy that implemented the fee. In July, the First Circuit declined to block that ruling, and USCIS stopped collecting the payment.
• September 2026: the proclamation was extended through September 21, 2027, and a second federal ruling at the end of the month barred enforcement of the extension as well.
• August 2026: USCIS proposed a separate fee of more than $103,000 on all cap-subject H-1B petitions. It is still a proposal.
The government is appealing, so any of this can change. What will not change is the planning problem it creates.
What the Uncertainty Costs a Hiring Plan
A company that opens a role today and plans to fill it through H-1B is betting on three things it does not control.
The fee
The $100,000 payment could return on appeal, and the proposed $103,000 fee could become final. A budget built on either number, or on neither, could be wrong by six figures per hire.
The lottery
Cap-subject H-1B petitions are limited to 65,000 a year, plus 20,000 for holders of US advanced degrees. Registration happens in March and the earliest start date is October 1. A candidate who is not selected is simply unavailable, however strong their profile.
The timeline
Because of the lottery calendar, a role opened today on the H-1B path may not start for close to a year.
The salary side is predictable. The US Bureau of Labor Statistics puts the median annual wage for software developers at $135,980 (May 2025), before benefits, payroll taxes and legal fees. If the $100,000 payment is reinstated, it sits on top of all of that in year one.
The LATAM Alternative: No Petition, No Lottery
Companies that hire LATAM talent avoid the immigration question entirely. The professional works remotely from their home country and is employed under local law, either through an Employer of Record (EOR) or a local entity. There is no petition, no fee, no lottery and no waiting on government processing.
The timeline follows the recruitment process instead of the visa calendar. With a specialized partner, first interviews usually happen 7 to 14 days after kickoff, and going from offer to start takes another 2 to 3 weeks. Executive searches take longer, typically 6 to 10 weeks.
The cost is predictable too. A senior engineer in Brazil typically costs 40% to 55% less than an equivalent US hire, with no immigration costs on top.
What Changes, and What Does Not, When You Hire in LATAM
The capability does not change. Latin America has deep benches of senior engineers, data professionals, finance specialists and bilingual sales talent, and Brazil has the largest software developer workforce in the region. The country-by-country comparison shows where each profile is strongest.
The working hours barely change. Brazil and Argentina run one to two hours ahead of US Eastern time, Colombia matches US Eastern standard time and Mexico City matches US Central standard time.
What changes is the structure around the hire: a local employment contract instead of a US visa, and a recruitment partner instead of an immigration process. For permanent hires, Direct Hire and outsourcing through an EOR cover most roles, and executive search covers senior leadership.
The TN Visa: An Option for Mexican Professionals
Some roles need someone on site in the US. For citizens of Mexico and Canada, the USMCA's TN status is worth knowing.
• It covers a defined list of professions, including engineers, computer systems analysts, accountants and scientists.
• It has no annual cap and no lottery, and it is not subject to the H-1B payment.
• Mexican citizens must first obtain a TN visa at a US consulate. Applying directly at the border is only available to Canadian citizens.
TN does not cover every role or every LATAM country, but for qualifying Mexican professionals who need to work on site, it is a far more predictable path than H-1B.
How to Move Your Hiring Plan From H-1B to Nearshore
Audit your H-1B pipeline
For each role you planned to fill through H-1B, check whether the same profile exists in Latin America. In most technical and operational disciplines, it does.
Choose the employment model
Without a local entity in Brazil, Mexico, Colombia or Argentina, an EOR is the simplest compliant option. It handles contracts, payroll, benefits and termination obligations under each country's rules.
Reset the timeline
Plan in weeks instead of lottery cycles. A role that would wait for an October start through H-1B can usually be filled within a month or two.
Build for the team, not the visa
The H-1B route limits hiring to candidates who can go through the petition process. Hiring in Latin America opens a much larger pool, unconstrained by immigration status.
Frequently Asked Questions
Is the $100,000 H-1B fee in effect?
As of October 2026, it is not being collected. Federal courts vacated the policies that implemented it, including the extension through September 2027, and the government is appealing. A separate proposed fee of more than $103,000 has not been finalized.
Did the H-1B fee apply to workers already in the US?
Under the proclamation, the payment applied mainly to new petitions for workers obtaining visas abroad. Extensions of stay and changes of status were exempt.
Can LATAM professionals work for a US company without a US visa?
Yes, when they work remotely from their home country. They are employed under local law, through an EOR or a local entity, and do not need US work authorization because they are not working in the US.
What is the TN visa?
TN is a USMCA status that lets Canadian and Mexican citizens work in the US in specific professions, such as engineering, computer systems analysis and accounting. It has no annual cap or lottery. Mexican citizens need a TN visa from a US consulate.
Planning Your Next Hires
Combine Global Recruitment has completed more than 800 placements and manages Direct Hire, Outsourcing (EOR) and Executive Search across Brazil, Mexico, Colombia and Argentina, including compliance and onboarding, so moving away from H-1B does not add work to your team.
Book a call to plan your next hires without a visa.
