Trump-Backed H-1B Overhaul: $100,000 Fee and Looming 2026 Changes

(WASHINGTON, D.C.) U.S. Commerce Secretary Howard Lutnick said the administration plans a broad visa overhaul of the H-1B system in the wake of the proposed $100,000 H-1B fee, signaling changes to the lottery, eligibility, and enforcement that could arrive before the fee’s scheduled start in February 2026. Lutnick, who stood by President Trump at the signing of the proclamation, defended the steep charge as a tool to deter cheap labor practices, while acknowledging that core details — including how visas will be allocated — remain in flux and will require more rulemaking.

The White House rollout triggered immediate confusion over scope. Early explanations suggested the “new visa” charge would apply to H-1B petitioners, potentially including renewals. Later statements clarified that current visa holders would be exempt from the new fee structure. Lutnick acknowledged the mixed messaging and said, “this procedure … goes into effect in February of 2026,” adding his expectation that “there are going to be a large number of changes between now and 2026.” He said he expects “all questions … to be resolved by February 2026.”

Administration officials have taken aim at the H-1B lottery, calling it illogical to assign work visas by chance. Lutnick said senior tech leaders he consults also view the random draw as “bizarre.” He urged a system that favors “the most highly-skilled people,” citing research, medicine, and advanced engineering, while arguing that lower-wage tech consultants and trainees should be phased out. “The idea of having tech consultants and trainees who are inexpensive … bringing their families … I find it just wrong,” he said.

According to analysis by VisaVerge.com, a merit- or wage-based allocation is the most likely replacement under discussion, with tiers that could prioritize roles deemed hard to fill or of high national value. The proclamation also previews a possible national interest exception, under which certain roles, companies, or industries might avoid the $100,000 charge. The process to request that exception is not yet set and may require case-specific evidence, similar to prior national interest procedures.

Policy changes overview

As of September 30, 2025, the administration’s stated timeline places the $100,000 fee in effect by February 2026, while operational details continue to develop. Officials have indicated that the fee would apply to “new” H-1B petitions, with existing H-1B workers and petitions filed before a defined date not subject to the new cost. The precise definition of “new” will matter for:

• cap-subject filings
• cap-exempt institutions
• change-of-employer cases

Those distinctions remain under review.

Lutnick’s push to move away from a pure lottery aligns with the administration’s broader goal of steering visas to top-tier talent and away from what he calls “cheap tech consultants.” He did not specify whether the replacement system will strictly use wage levels, credentials, or a points-style ranking, but he said the redesign will fix what he considers a flawed draw. A wage-based system was previously floated in past rulemaking, and the model could reappear in some form now.

In parallel, the Department of Labor has launched “Project Firewall”, aimed at employers that misuse the H-1B route by:

• underpaying or benching workers
• using layered staffing to drive down wages
• misclassifying roles to lower wage obligations

Lutnick framed enforcement as key to protecting U.S. workers and restoring public trust in the program. Employers caught abusing the system may face penalties. The administration argues that raising the cost of entry and boosting oversight will push companies to reserve petitions for roles that truly require advanced skills.

While the administration has not released formal regulation text for public comment, agency guidance is expected in phases. Stakeholders should watch for updates from:

• USCIS
• Department of Labor
• Department of State
• Customs and Border Protection

For baseline program rules, the official reference is the USCIS H-1B program page: https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations. That page will be updated as new guidance is issued.

Impact on applicants and employers

The proposed fee level — paired with stricter screening — could hit startups and small firms hardest. Many early-stage companies rely on one or two specialty hires to ship products or secure funding; a six-figure fee could make sponsorship unrealistic, even before legal, filing, and relocation costs.

• Larger employers may absorb the price, but could also file fewer petitions to control budgets, narrowing options for recent graduates and mid-career experts.
• Global talent may be pushed to seek opportunities outside the United States 🇺🇸 as competing countries offer streamlined visas and lower costs.
• Research hubs and hospital systems warn a price shock could disrupt patient care and slow innovation if critical roles go unfilled.

Policy and legal risk loom over the rollout. A sweeping change to fees and selection methods could face court challenges on fairness and administrative grounds. That risk may shape how fast agencies move and how carefully they build the record. Administrative capacity is another factor: moving from a lottery to a scored or wage-based system requires new technology, clear criteria, and staff training so filings can be reviewed and ranked without long delays.

Many procedural questions remain unanswered:

• How the fee will interact with cap-exempt employers (e.g., universities, nonprofit research groups)
• Whether separate rules will apply to cases filed outside the cap season
• The interplay with H-1B1 (Chile/Singapore) and E-3 (Australia) programs

The administration has said to expect refinements before February 2026.

Practical planning and immediate responses

Practical planning has started even without final text. Employers that intend to file next season are:

• reviewing budgets, workforce plans, and internal policies
• weighing whether to prioritize roles likely to qualify for a national interest exception or a future high-tier category
• preparing wage increases to strengthen their position if selection ties to pay levels

Foreign students on F-1 Optional Practical Training (OPT) may seek earlier filings to avoid falling under the new fee if timing allows.

For now, core filing mechanics for H-1B petitions remain in place. Employers petition for workers using Form I-129, Petition for a Nonimmigrant Worker and related supplements. When forms are required, use the official version available at: Form I-129, Petition for a Nonimmigrant Worker.

If the administration adopts a new selection method, USCIS will need to update registration and adjudication processes so petitioners can submit the right evidence at the right time — especially if points, wages, or credentials drive ranking.

Political and legal context

Lutnick’s remarks underscore the political stakes. By emphasizing abuse crackdowns and talent-first selection, the administration is appealing to both worker protection concerns and industry calls to recruit top experts.

Critics, including many in tech and academia, argue that a six-figure gate fee risks:

• shutting out smaller employers
• shrinking the pipeline of graduates who fuel startups and labs

Lawsuits are likely if final rules are seen as arbitrary or beyond agency authority.

With only months before the February 2026 target, agencies face a tight buildout:

1. publish detailed rules
2. process public feedback
3. set up new systems
4. train staff
5. prepare for court challenges

Lutnick has said those open questions will be settled by the deadline. Employers, workers, and universities will be watching whether the final shape of this visa overhaul meets that promise — and whether the H-1B fee becomes a durable filter or a flashpoint that shifts the future of high-skill immigration.

Key takeaway: The administration is pushing for a major redesign of H-1B selection and enforcement tied to a proposed $100,000 fee effective February 2026, but many significant details — definitions, exemptions, selection criteria, and legal risks — remain to be clarified through forthcoming rulemaking and guidance.