The New H-1B Landscape: Rising Participation Costs and Project Firewall
The New H-1B Landscape: Rising Participation Costs and Project Firewall
Bayan Biazar, Associate
On September 19, 2025, the federal government reshaped the H-1B program on two fronts. Employers now face dramatically higher fees just to enter the H-1B lottery, while the Department of Labor’s (“DOL”) new “Project Firewall” initiative promises more aggressive enforcement on the back end. For businesses that rely on foreign talent, the risks—and the costs—have never been higher.
The New Price of Entry
The H-1B program allows U.S. employers to temporarily hire foreign professionals in specialty occupations that require highly specialized knowledge and skill, often in fields like technology, engineering, and healthcare. American companies seeking to hire a foreign worker on an H-1B visa must first attest that they have been unable to find American workers with similar skills and that the foreign worker will earn a salary that is similar to what an American worker would earn. Congress allows 85,000 H-1B visas to be issued through a lottery each year. With President Trump’s recent Proclamation,[1] the price of participating in the H-1B program has now gone up significantly. Employers who are seeking to sponsor H-1B workers are now looking at a six-figure filing fee—roughly $100,000[2] per new petition—just to enter the lottery.[3] The change, which applies to petitions filed after September 21, 2025, has been described as a sort of a “pay to play” model.
The new system is not retroactive, meaning that previously filed petitions are unaffected, but going forward the costs are unavoidable. And the lottery itself is changing too. Instead of relying purely on chance, United States Citizenship and Immigration Services (“USCIS”) has proposed that the lottery may be weighted by wage levels, giving employers who offer higher salaries for higher skilled positions a better shot at selection. That shift could pressure many businesses to raise wage offers simply to stay competitive, which in turn could draw more scrutiny when DOL investigators, under the new Project Firewall initiative, compare those promised wages to what is actually being paid.
How Project Firewall Works
Project Firewall is designed to give the DOL broader authority to investigate employer compliance with the H-1B program.[4] In the past, most cases and investigations into H-1B compliance began only when an employee or competitor lodged a complaint. Under this new initiative, however, the DOL can initiate investigations on its own when it believes there is “reasonable cause” to suspect a violation.[5] What’s more, the Secretary of Labor herself now can certify certain cases for investigation, a level of government involvement that has never been seen before.
Project Firewall also expands who could be involved in the H-1B compliance landscape. The DOL plans to coordinate with the Department of Justice (“DOJ”); USCIS; and the Equal Employment Opportunity Commission (“EEOC”), which means that with inter-agency cooperation, a compliance issue identified in one area could potentially snowball into multiple lines of inquiry from other government agencies.
In practice, the initiative is expected to focus on and target common problem areas like the underpayment of required wages, employees holding job duties that do not match the position that was filed in the petition, inadequate recordkeeping, or questionable use of third-party placements. The DOL has already signaled that it will use its Wage and Hour Division as the front line for these audits, while relying on cross-agency information sharing to dig deeper when issues may arise.
What This Could Mean for Employers
For employers, the risks tied to H-1B sponsorship are climbing on both ends. Project Firewall means that investigations may come without warning, and the consequences are severe: back pay orders, escalating civil fines, removal from the H-1B program, and even investigations into discrimination. With the DOJ’s involvement, employers could face claims of unequal treatment of U.S. workers if an inquiry uncovers hiring practices that reduce opportunities for highly skilled American workers, lower wages due to reliance on foreign labor, or unlawful displacement.
At the same time, the cost of entering the lottery has risen dramatically. With a new $100,000 filing fee for any petitions submitted after September 21, 2025, employers are making a far larger investment just to participate. That investment is at risk if compliance falters later, compounding the financial and legal exposure.
In short, the H-1B program has become both more expensive and more unforgiving. Employers should be preparing now to ensure their filings, wages, and hiring practices can withstand this heightened level of scrutiny. As always, Campbell Litigation is here to help employers navigate these changes and assist with potential employment claims that may arise from an inter-agency investigation.
[1] See Proclamation No. 10973, Restriction on Entry of Certain Nonimmigrant Workers, 2025 WL 2784952 (September 19, 2025).
[2] Id.
[3] It had previously cost employers between $2,000 and $5,000 per new H-1B petition, depending on the size of the respective employer. The new $100,000 fee will be tacked on to already preexisting fees.
[4] US Department of Labor launches Project Firewall to protect America’s highly skilled workforce | U.S. Department of Labor.
[5] Id.