H.R. 1 Reconciliation Act 2026: New Asylum & H-1B Fee Changes

The H.R. 1 Reconciliation Act (“One Big Beautiful Bill Act”) changed everything for immigrants. These reforms brought massive fee increases and processing changes that hit asylum seekers and H-1B visa applicants hard. Are you dealing with these new requirements? Understanding what’s changed isn’t just helpful—it’s essential for your case and your ability to stay in the United States legally.

Background: What the H.R. 1 Reconciliation Act Means for Immigrants

Congress passed H.R. 1 on July 4, 2025, using a budgetary process called “reconciliation” to skip the usual Senate rules that require 60 votes. The new regulations kicked in on May 29, 2026, completely changing how immigration fees work and how cases get processed.

Here’s what asylum seekers face now: every person with a pending Form I-589 must pay an Annual Asylum Fee of $102 for each calendar year their application stays pending. That’s a huge change from before, when affirmative asylum applications didn’t cost anything to file. Plus, there’s still the $100 filing fee for every initial Form I-589—another charge that didn’t exist for affirmative asylum applicants before H.R. 1.

The H-1B program has seen equally significant changes. DHS is amending regulations governing the H-1B work visa selection process to prioritize the allocation of visas to higher-skilled and higher-paid aliens, replacing the random lottery with a process that gives greater weight to those with higher skills. Most notably, employers must pay an additional $100,000 per visa as a condition of eligibility under the Presidential Proclamation.

How These Changes Affect Asylum Seekers and H-1B Applicants

Asylum Applicants face severe consequences for non-payment: If an alien does not pay the AAF within 30 days of notification, USCIS will reject their pending asylum application. The ramifications extend far beyond case dismissal. If an alien does not have legal status in the U.S., USCIS will also initiate removal proceedings, deny any pending Form I-765 employment authorization applications, and aliens who were approved to work will lose work authorization immediately.

An asylum seeker who requests at least one work permit and waits 5 years to obtain a decision faces an estimated $1,150 in filing fees under H.R. 1 compared to $0 before the bill’s enactment. This places an enormous financial burden on individuals already fleeing persecution.

H-1B Professionals and Employers must navigate a completely restructured system. Under the new rule, applicants at the highest wage level will receive four entries in the lottery, those in the next wage bracket will receive three entries, and so on. The weighted selection system will be in place for the FY 2027 H-1B cap registration season.

The $100,000 fee has created particular challenges. The fee applies when candidates need consular processing due to personal background issues, though our clients are encouraging business heads to identify foreign students graduating from university, as this won’t trigger the fee. However, with the new lottery criteria, their chances of selection are very low.

What You Should Do Now: Immediate Action Steps

For Asylum Seekers:

  • Track Payment Deadlines: USCIS will provide personal, individual notice to each asylum applicant with an application pending, including the amount of the fee, when it must be paid, how it must be paid, and the consequences of failure to pay
  • Prepare for Online Payments: USCIS will require that AAF be paid using an online fee payment process
  • Review Fee Waiver Eligibility: Limited fee-waiver categories are preserved under H.R. 1, including certain unaccompanied children with pending Special Immigrant Juvenile Status applications and several humanitarian categories
  • Consider Alternative Relief: If your asylum claim has been pending for more than three years, review whether marriage-based adjustment, U or T visa eligibility, withholding of removal, or relief under the Convention Against Torture makes sense as a backup strategy

For H-1B Applicants and Employers:

  • Evaluate Wage Strategy: Companies are doing cost-benefit analysis and trying to understand how to fit their employees within higher wage levels to have a better chance at the weighted selection process while complying with the law
  • Plan for Higher Costs: Budget for the $100,000 fee for new H-1B applications requiring consular processing
  • Review Current Applications: Consult an experienced immigration lawyer if you’ve received an RFE, denial, or notice of revocation under the new Trump policies
  • Avoid Alternative Visa Misuse: If we overuse the O-1 or L-1 categories, authorities are going to clamp down on those too

Why Choose Tez Law P.C. for Your Immigration Needs

At Tez Law P.C., managing attorney JJ Zhang (California Bar #326666) understands the complexity and urgency of these new immigration challenges. Our firm provides comprehensive immigration services across the entire United States, ensuring that distance never prevents you from receiving expert legal representation.

Our experience includes:

  • Asylum Fee Compliance: We help clients create payment calendars and maintain detailed records to avoid application rejection
  • H-1B Strategy: Our team navigates the new weighted selection system and advises on wage optimization strategies
  • Emergency Response: When USCIS issues payment notifications or denial notices, we provide immediate legal intervention
  • Alternative Relief Options: We evaluate all available pathways when primary applications face challenges

Beyond immigration law, Tez Law P.C. also provides skilled representation in personal injury matters, ensuring comprehensive legal support for our clients’ diverse needs.

Frequently Asked Questions

What happens if I can’t afford the Annual Asylum Fee?

Unfortunately, the asylum fee cannot be waived or reduced for most applicants. However, limited fee-waiver categories exist for certain humanitarian cases and unaccompanied children with specific applications. Missing the 30-day payment deadline results in application rejection and potential removal proceedings for those without legal status.

Does the $100,000 H-1B fee apply to all applications?

No, the $100,000 fee specifically applies to new H-1B visa applications that require consular processing abroad. It does not apply to status changes within the U.S. for candidates already present, such as international students graduating from U.S. universities, though these applications still face the new weighted lottery system.

Can I get a refund if my H-1B application is denied under the new system?

The new regulations specify that USCIS will keep filing fees even for rejected applications. Given the substantial investment required under the current system, it’s crucial to work with experienced immigration counsel to maximize approval chances before filing.

Take Action Today

These immigration law changes represent some of the most significant shifts in decades, with immediate consequences for non-compliance. Whether you’re facing asylum fee deadlines or navigating the new H-1B landscape, professional legal guidance isn’t just helpful—it’s essential for protecting your future in the United States.

Don’t wait until you receive a rejection notice or payment deadline. Contact Tez Law P.C. today for a free consultation to discuss your specific situation and develop a comprehensive strategy that protects your rights and maximizes your chances of success under these new regulations.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Contact Tez Law P.C. at 626-678-8677 or [email protected] for advice specific to your situation. Results may vary.

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