Significant Changes Ahead for H-1B Visa Process

US Commerce Secretary Howard Lutnick has announced that there will be major changes to the H-1B visa process before February 2026, when a new fee of USD 100,000 will be implemented. This fee will apply to new H-1B work visa applications, impacting many Indian professionals seeking employment in the United States.

Lutnick, who stood alongside President Donald Trump during the signing of the H-1B proclamation, clarified that the USD 100,000 fee will be a one-time payment for new applicants and will not affect current visa holders. He stated, "This procedure and process go into effect in February of 2026, so my guess is going to be, there are going to be a significant number of changes between now and 2026."

He expressed concerns about the current system, describing the notion of "inexpensive" tech consultants entering the US and bringing their families as "just wrong." Lutnick emphasized that the H-1B visa process, established in 1990, needs reform, as it is currently oversubscribed by 7 to 10 times, with 74% of visas going to tech consulting roles. He noted that only about 4% of these visas are allocated to educators and doctors.

Lutnick also criticized the lottery system used to allocate H-1B visas, calling it "bizarre" and questioning the logic of bringing skilled workers into the country through a lottery. He stated, "That just doesn't make any sense," and advocated for a system that prioritizes highly skilled individuals for high-paying jobs.

In addition to the fee changes, the US Department of Labour has launched "Project Firewall," an initiative aimed at protecting the rights and job opportunities of American workers. This project will ensure that employers prioritize hiring qualified Americans and will hold them accountable for any abuses of the H-1B visa process. Secretary of Labour Lori Chavez-DeRemer stated, "Launching Project Firewall will help us ensure no employers are abusing H-1B visas at the expense of our workforce."

Through this initiative, the Department of Labour will conduct investigations to ensure compliance with the H-1B programme. Violations could lead to penalties, back wages for affected workers, and restrictions on future use of the H-1B programme for offending employers. The changes and initiatives signal a significant shift in the US approach to skilled immigration, particularly affecting the tech industry and foreign professionals seeking opportunities in the country.