The Trump administration has proposed significant changes to the H-1B visa lottery, aiming to favour higher-paid and highly skilled workers, according to a notice published in the Federal Register on Tuesday. This comes after a White House announcement last Friday introducing a $100,000 fee for new visas.
If adopted, the revised system would favour employers offering higher wages when visa applications exceed the statutory limit of 85,000, aiming to “better protect Americans from unfair wage competition from foreign workers,” the notice stated, as per news agency Reuters.
According to NDTV, the administration plans to implement “a weighted selection process that would generally favour the allocation of H-1B visas to higher-skilled and higher-paid aliens, while maintaining the opportunity for employers to secure H-1B workers at all wage levels”.
Lottery System to Prioritise Higher Wages
The proposed regulation would replace the existing lottery process used when demand exceeds supply, introducing wage tiers that give higher-paying jobs a greater chance of selection. The rules could potentially be implemented in time for the 2026 lottery, ahead of the March registration period, the notice suggested.
During his presidency from 2017 to 2021, Trump had sought similar changes, but legal challenges and limited time prevented implementation. A comparable policy introduced under President Joe Biden was blocked by a federal judge in September 2021 and later withdrawn.
The Department of Homeland Security estimates that total wages paid to H-1B workers could rise to $502 million in fiscal year 2026, with further increases projected to reach $2 billion annually by 2035. However, about 5,200 small businesses that currently rely on H-1B labour may face significant losses, DHS warned.
U.S. Citizenship and Immigration Services (USCIS), which issued the proposal, will open a 30-day public comment period starting Wednesday. According to Reuters, supporters argue that the programme is crucial for addressing talent gaps and maintaining U.S. competitiveness, with figures like Elon Musk, a naturalised American who previously held an H-1B visa, endorsing it.
India Largest Beneficiary Of H-1B Visas In 2024
Critics, however, contend that H-1B visas can suppress wages and reduce employment opportunities for American workers. India has been the largest beneficiary of these visas, accounting for 71% of approvals last year, followed by China with 11.7%, according to government data. The H-1B programme allocates 65,000 visas annually for specialised fields and an additional 20,000 for individuals with advanced degrees.
Trump’s Broader Immigration Drive
Since taking office, Trump has pursued a wide-ranging crackdown on immigration, including mass deportation initiatives and efforts to block citizenship for children of undocumented immigrants in the U.S. In recent weeks, his administration has intensified scrutiny of the H-1B programme, widely used by technology and outsourcing firms.
The White House’s recent $100,000 fee announcement sparked confusion and warnings from major tech companies for visa holders to return to the U.S., though officials later clarified that the fee would only apply to new visas.
