100K Visa Fee? Why Indian Engineers Are Rethinking the American Dream
Major H-1B Visa Changes Ahead: What Indian Tech Workers Must Know
The H-1B visa, once a golden ticket for Indian professionals, is now facing a dramatic overhaul. On September 29, 2025, US Commerce Secretary Howard Lutnick confirmed that significant changes will hit the H-1B process before the new $100,000 annual fee takes effect in February 2026.
This announcement follows President Donald Trump’s recent proclamation, which aims to curb low-cost tech consultants entering the US and bringing their families.
What Is the $100,000 H-1B Fee?
Under the new proposal:
- Every new H-1B application or renewal will cost $100,000 per year
- Existing visa holders can still travel freely without paying the fee
- The fee applies to both first-time applicants and renewals
Lutnick said, “At least it shouldn’t be overrun with these people,” referring to low-cost tech consultants. He expects “thoughtful changes” to follow before 2026.
Why the H-1B System Is Being Targeted
Lutnick criticized the current system, calling it “just wrong.” He argued that:
- The lottery system is outdated and unfair
- 74% of H-1B visas go to tech consultants
- Many consultants are “inexpensive trainees” who shouldn’t qualify
He believes only highly paid engineers, doctors, and educators should be eligible. The goal is to prioritize high-skilled, high-wage jobs for Americans and top global talent.
What Is Project Firewall?
To enforce these changes, the US Department of Labor launched Project Firewall this month. It aims to:
- Prevent H-1B fraud and abuse
- Ensure employers hire qualified Americans first
- Penalize companies that misuse the visa system
Secretary Lori Chavez-DeRemer said, “We’ll make sure highly skilled jobs go to Americans first.”
Impact on Indian Tech Firms and Consultants
Indian IT companies like TCS, Infosys, and Wipro rely heavily on H-1B visas to send engineers to US clients. With the new fee and stricter rules:
- Costs will rise sharply
- Fewer junior consultants may qualify
- Companies may shift focus to remote delivery models
This could also affect Indian students planning to stay in the US after graduation.
What Top Tech CEOs Think
Lutnick revealed that two major tech CEOs told him the H-1B lottery is “bizarre.” They believe skilled hiring should be based on merit, not chance.
He added, “The system was set up in 1990 and butchered along the way. It’s time for a reset.”
What Happens Next?
The $100K fee is not yet active. It will begin in February 2026, giving companies and applicants time to adjust. However, Lutnick hinted that the lottery system may be scrapped, and eligibility rules will tighten.
Expect more updates from the White House, US Department of Labor, and USCIS in the coming months.
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