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27m ago

U.S. Signals H‑1B Overhaul After $100,000 Fee as Firms Eye India for High‑Value Work

Commerce officials flagged changes to selection and wage priorities before 2026, creating fresh uncertainty for employers.

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A bipartisan duo in the Senate has drafted an unprecedented bill to curb the little-known but huge L-1 visa program, which allows multinationals to import hundreds of thousands of white collar workers while paying them home country wages.
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Overview

  • Commerce Secretary Howard Lutnick said a significant set of H‑1B rule changes will be decided before February 2026, calling the lottery "bizarre" and urging priority for highly paid, highly skilled applicants while curbing entry of low‑cost tech consultants.
  • Lutnick indicated the $100,000 charge applies as a one‑time fee for new petitions "as of now," with the final process to be settled ahead of the effective date.
  • The U.S. Chamber of Commerce formally asked the administration to rescind the fee, warning it would impede growth, strain small and mid‑size employers, and reduce funds for investment.
  • Industry experts say companies are accelerating plans to shift advanced roles in AI, product development, cybersecurity and analytics to India’s Global Capability Centres, which number about 1,700 today and could exceed 2,200 by 2030 with a market approaching $100 billion.
  • Policy flux deepened with a Senate push to tighten H‑1B/L‑1 rules, talk of a HIRE Act outsourcing tax that analysts say could temper offshoring gains, and a Labor Department “Project Firewall” initiative to police abuse and prioritize qualified U.S. workers; reporting also noted existing H‑1B holders are not subject to the new fee.