US to overhaul H1B visa process before 2026: US commerce secy
New York: US Commerce Secretary Howard Lutnick has said that there will be a significant number of changes to the H1B visa process before February 2026. This comes ahead of the new one-time USD 100,000 fee for new H1B work visas. Lutnick described the idea of inexpensive tech consultants coming to the US with their families as completely wrong.
What is the new H1B fee?
Earlier this month, the Trump administration announced a one-time fee of USD 100,000 for new H1B work visas. This order affects Indian professionals and other foreign workers who plan to work in the US under temporary visas. The fee will apply to both first-time applicants and renewals, but will not affect current visa holders. The USD 100,000 payment is a one-time requirement for new petitions.
When will the changes take effect?
Lutnick said in an interview with NewsNation that the new procedures will take effect in February 2026. He added that he expects many changes to happen before then. With the new fee, he said, the system should not be overrun with applicants. He also said that there will be thoughtful changes in the process going forward, including potential changes to the lottery system.
Why is the lottery system under review?
He noted that the H1B visa system currently relies on a lottery to select applicants, but he questioned why skilled workers should be brought in through a lottery. Lutnick explained that there is consensus that the H1B system, which was set up in 1990 and modified over the years, needs reform.
He said the visas are heavily oversubscribed, with about 74 percent going to tech consulting. Only four percent of the visas are currently used for educators and doctors.
He suggested that the lottery system should be fixed so that highly skilled jobs go to the most qualified people. Doctors and educators with high degrees should be able to enter the US, and companies hiring engineers should focus on those who are highly paid. He strongly opposed allowing inexpensive tech consultants and trainees to come into the country with their families.
What is project firewall?
In addition to the new fee, the US Department of Labour has launched an initiative called Project Firewall. This enforcement programme aims to protect the rights, wages, and job opportunities of highly skilled American workers.
The initiative ensures that employers prioritise qualified Americans when hiring and holds employers accountable for any abuse of the H1B process.
Secretary of Labour Lori Chavez-DeRemer said that Project Firewall will help ensure that no employer abuses H1B visas at the expense of American workers.
The programme allows the department to investigate employers, with the Secretary personally certifying investigations for the first time.
Violations may result in back wages for affected workers, civil penalties, or debarment from using the H1B programme for a certain period.
PTI inputs