U.S. Commerce Secretary Howard Lutnick has declared that the H-1B visa program is slated for a “significant overhaul” before February 2026. This comes ahead of the implementation of a new $100,000 application fee. Lutnick expressed strong disapproval for the current system, deeming the influx of “inexpensive” tech consultants bringing their families into the country as “just wrong.”
Earlier this month, the Trump administration introduced a substantial one-time fee of $100,000 for new H-1B work visa applications. This policy is set to significantly affect Indian professionals seeking temporary employment in the U.S.
During the H-1B proclamation signing in the Oval Office, with President Donald Trump present, Mr. Lutnick initially stated that the $100,000 charge would be an annual fee, applying to both new applications and renewals for all H-1B visas.
However, following considerable confusion and concern, the Trump administration clarified its stance: the new H-1B visa fee will solely affect new petitions and will be a one-time payment, not an annual charge, nor will it impact current visa holders.
Speaking in an interview with NewsNation on Sunday, September 28, 2025, Mr. Lutnick anticipated extensive modifications to the H-1B process. “This procedure and process goes 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 remarked.
Lutnick stated that the $100,000 application fee should “at least” prevent the program from being “overrun with these people.” He added, “But I think you’re going to see a real thoughtful change going forward. And that’s what I expect will happen.”
Examining the Lottery System
He explained that “a variety of changes” are under discussion, including fundamental questions about the lottery system itself, such as “how to get the lottery, should it still be a lottery?” All these issues are expected to be resolved by February.
Currently, he confirmed, a one-time fee of $100,000 will be required for entry.
Lutnick pointed out the inherent contradiction, stating, “There was a lottery. The H-1B is a lottery.” He recounted discussions with leaders of major tech firms, who found the concept of using a lottery for skilled workers entering America “bizarre.”
He challenged the logic of a nation relying on a lottery to admit skilled professionals, emphasizing, “That just doesn’t make any sense.”
Addressing Oversubscription
Lutnick noted a general agreement that the H-1B process, established in 1990 and subsequently “sort of butchered along the way,” is in dire need of reform.
He highlighted that the visas are currently “oversubscribed” by seven to ten times, with a staggering 74% of them allocated to tech consulting roles.
Questioning the program’s focus, he remarked, “H-1B visas are for tech consultants? Like, somehow, that’s important that tech consultants are onshore versus offshore. They’re all in other countries anyway.” He also noted that only about 4% of these visas are issued to educators and doctors.
Lutnick insisted that the H-1B lottery “needs to be fixed” to ensure that the U.S. allocates “highly-skilled jobs” exclusively to the “most highly-skilled people.”
According to Lutnick, individuals such as doctors and educators with advanced degrees should be welcome, but companies looking to hire engineers should prioritize only those with high salaries.
He firmly stated, “The idea of having tech consultants and trainees who are inexpensive should be eliminated. I have a strong opinion that way. I think the President’s right with me on those same topics… I am completely on the view that this idea that inexpensive tech consultants should be coming into this country and bringing their families, I find it just wrong, and so it sits wrong with me.”
Introducing ‘Project Firewall’
This month, the U.S. Department of Labor unveiled ‘Project Firewall,’ a new H-1B enforcement initiative. Its primary goal is to protect the rights, fair wages, and job prospects of highly skilled American workers.
This initiative aims to guarantee that employers prioritize qualified American citizens during hiring and will hold accountable any employers found misusing the H-1B visa process.
U.S. Secretary of Labor Lori Chavez-DeRemer stated, “Launching Project Firewall will help us ensure no employers are abusing H1B visas at the expense of our workforce.” She further emphasized, “By rooting out fraud and abuse, the Department of Labour and our federal partners will ensure that highly skilled jobs go to Americans first.”
Under Project Firewall, the department will conduct thorough investigations into employers to ensure maximum compliance with the H-1B program. In an unprecedented move, the Secretary of Labor will “personally certify the initiation of investigations” to achieve this objective.
Should violations be found, penalties could include the recovery of back wages for affected workers, significant civil monetary fines, and/or a ban from participating in the H-1B program for a specified duration.