Lutnick Sees Significant H-1B Process Changes Before 2026

(UNITED STATES) US Commerce Secretary Howard Lutnick said the administration expects a “significant number of changes” to the H-1B visa process before February 2026, when a new one-time fee of $100,000 for new H-1B applications is set to take effect under President Trump’s policy. Speaking as of September 30, 2025, Lutnick criticized the current lottery as “outdated and flawed,” signaling a shift toward steering visas to highly skilled workers in critical fields rather than what he called “inexpensive” tech consulting roles.

The announcement arrives amid active discussions about whether to keep the lottery or move to a more merit-based selection. Lutnick’s comments suggest a broad review of how the H-1B system ranks and selects candidates, with the administration aiming to complete changes before the fee starts in 2026. According to analysis by VisaVerge.com, the plan underscores a policy push to favor talent pipelines that match national workforce needs while tightening compliance.

Policy background and overview

The H-1B visa program, established in 1990, is used by employers to bring in foreign professionals for “specialty occupations” that require at least a bachelor’s degree or equivalent. It has been both a lifeline for industries with skill gaps and a flashpoint in policy fights over wages and worker protections.

Tech leaders have frequently questioned the lottery’s randomness. Lutnick echoed those concerns, calling the lottery “bizarre” because it does not reliably prioritize the most skilled candidates.

Key elements now on the table include:
– Potential redesign of the lottery to reflect merit or sector-based priorities.
– A focus on highly skilled professionals in fields like healthcare, engineering, and education.
– Stronger enforcement through the Department of Labor’s Project Firewall, which aims to monitor H-1B compliance and protect US jobs.
– Implementation of the new $100,000 one-time fee for new applications beginning February 2026. Officials said this fee does not apply to existing H-1B holders.

While final rules have not been released, Lutnick’s timeline points to a busy policy window over the coming months. His remarks signal that employers should prepare for operational changes in hiring, budgeting for immigration costs, and documenting job requirements.

For the legal baseline, the government’s overview of H-1B eligibility, employer obligations, and process steps is available on the USCIS H-1B specialty occupations page: USCIS H-1B specialty occupations page. This official resource explains core terms and links to regulations.

Impact on applicants and employers

The proposed direction could reshape who gets selected and how companies structure roles. Lutnick stressed prioritizing highly skilled professionals in critical sectors, which could benefit experienced workers such as doctors, advanced researchers, and educators—groups he suggested the current system fails to highlight.

For IT staffing and consulting models built on entry-level placements, the combination of a steep fee and merit-based selection would likely raise costs and narrow pathways.

Practical effects if the changes proceed as signaled:
– Employers may need to document specialized duties in clearer terms and present stronger evidence that a role qualifies as a specialty occupation.
– Candidates with advanced credentials, relevant licenses, or rare skill sets could see improved chances if selection criteria shift toward merit.
– Budgets for 2026 hiring cycles must account for the $100,000 one-time fee for each new H-1B application, on top of existing filing and anti-fraud fees.
– Companies that rely on volume-based H-1B hiring may reduce filings or shift to alternative visa categories if available.

The administration’s cost strategy appears designed to deter what Lutnick described as lower-cost labor substitution through the H-1B pipeline. Project Firewall, launched by the Department of Labor, adds an enforcement layer aimed at wage rules and job-site compliance. Employers should expect more audits and should ensure their public access files, wage levels, and worksite details are consistent across filings and contracts.

Important clarification:

The new one-time fee applies only to new H-1B applications filed on or after February 2026. It does not apply to current H-1B workers or to routine extensions and amendments already in place. Standard petition steps and deadlines remain in effect while policy updates are prepared.

What employers can do now

Although the final shape of selection changes is still under discussion, companies can act now to reduce risk and prepare for 2026:

1. Map critical roles
   • Identify positions that truly require specialized degrees and advanced skills.
   • Gather evidence tying those skills to the job’s core duties.
2. Strengthen wage support
   • Confirm wage levels align with the role’s complexity and location.
   • Prepare documentation supporting the offered wage.
3. Tighten vendor chains
   • If using third-party worksites, track contracts and statements of work.
   • Ensure job descriptions match duties performed at client sites.
4. Align timelines and budget
   • If you expect to file new H-1B petitions in early 2026, budget for the $100,000 one-time fee and plan for earlier internal approvals.

Additional practical notes:
– Not all filings require premium processing. Employers who choose it should use Form I-907, Request for Premium Processing to request faster adjudication of a petition filed with Form I-129, Petition for a Nonimmigrant Worker.
– Relevant USCIS forms:
– Form I-129, Petition for a Nonimmigrant Worker
– Form I-907, Request for Premium Processing

Applicants should review degree evaluations, licenses, and experience letters early. If the H-1B process moves toward merit-based selection, these materials could carry more weight in candidate ranking.

Perspectives, risks, and timing

Lutnick’s stance mirrors long-running debates over how the H-1B serves the United States. Supporters of reform argue a merit-centered approach would direct visas to roles with clear public benefit—e.g., rural healthcare or advanced manufacturing. Critics warn that high fees could shut out startups, universities, and mid-size employers that rely on international talent.

Common ground exists on one point: predictability matters. Employers need a fair, clear system, and workers need a pathway that rewards skill without excessive red tape.

Current status and next steps:
– Lutnick expects rule changes to be in place before February 2026.
– The Department of Labor’s Project Firewall is already increasing compliance pressure.
– The Commerce Department’s comments suggest a broader realignment away from mass lottery filings.
– The White House has not issued additional text beyond the fee decision; agencies are expected to publish specific procedures once finalized.

VisaVerge.com reports companies are already reassessing 2026 hiring plans in light of the fee and possible merit screens. Immigration counsel widely advise being audit-ready, designing careful job descriptions, and budgeting early to avoid last-minute scrambles if selection rules change quickly.

With the clock ticking toward February 2026, both applicants and employers should prepare for a different H-1B playing field—and higher stakes for getting each filing right.

Lutnick’s critique—calling the lottery “bizarre” and “outdated”—captures an urgency shared by many employers and workers. What changes, and how they are implemented, will determine whether the H-1B remains a practical tool for filling real skill gaps or becomes a narrower channel focused on a smaller set of priority roles.