MC EXPLAINER $100,000 or national interest? Inside the hidden clause that could spare firms from Trump’s H-1B visa fee

Section 1(c) gives DHS sweeping discretion to waive the $100k fee, but who qualifies is the big question.

When headlines screamed that US President Trump had slapped a $100,000 fee on H-1B visas, one line buried in the proclamation went largely unnoticed: Section 1(c).

It reads: the restriction “shall not apply to any individual alien, all aliens working for a company, or all aliens working in an industry, if the Secretary of Homeland Security determines, in the Secretary’s discretion, that the hiring of such aliens is in the national interest and does not pose a threat to the security or welfare of the United States."

In plain words: the Secretary of Homeland Security has the power to waive the $100,000 condition for individuals, entire companies, or even whole industries if it’s judged to be in the 'national interest.'

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Why it matters

This clause is a pressure valve. It means the new visa wall is not absolute. Instead, it sets up a bargaining game: pay $100,000, or convince DHS that your role, company or industry is too important to America’s national interest to be blocked.

That creates uncertainty, but also opportunity. For some sectors, subsection (c) could be the difference between survival and shutdown.

Who’s most likely to win exemptions

Based on past patterns and national interest definitions, a few sectors stand out:

Healthcare: Rural hospitals and clinics already struggle to recruit doctors. Physicians on H-1Bs are common in shortage areas. Healthcare has a strong claim to 'national interest.'
Defense and security contractors: Firms linked to defense, aerospace, or intelligence work are virtually certain to argue their case.
Critical technology sectors: Semiconductors, AI, cybersecurity, and cloud infrastructure are hotbeds of US–China competition.
Universities and research institutions: Postdocs and PhD-level hires keep America’s research machine running. Universities are historically influential in shaping immigration rules.

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Who faces an uphill battle

IT services and consulting giants (Infosys, TCS, Wipro, Cognizant): They may struggle to argue that large cohorts of entry-level programmers are in the US national interest.
Startups and mid-sized tech firms: Individually important, but without the lobbying heft to secure blanket waivers. They’ll be forced to absorb costs or shift work offshore.
Finance and consulting houses: Some quant and niche roles may qualify, but entire industries are unlikely to get waivers.

Risks and ambiguities

Discretion is everything: Section 1(c) uses the phrase 'in the Secretary’s discretion.' That means there are no binding criteria, it’s political and case-by-case.

Implementation delays: Even if DHS grants exemptions, setting up an application and review process takes time. Companies may face months of limbo.

Narrow interpretation possible: Agencies could choose to keep exemptions very limited to avoid gutting the proclamation. On paper, it gives DHS the power to exempt everyone from a single individual to entire industries. In reality, it sets the stage for months of lobbying, litigation, and case-by-case battles over what counts as 'national interest.'

For Indian IT workers and outsourcing firms, it offers only a faint hope. For healthcare, defense, and research, it’s likely the lifeline that keeps the door ajar.