Trump Administration proposes overhaul of H-1B visa selection process to favour higher-paid, higher-skilled workers

The Trump administration unveiled a proposal on Tuesday to revamp the H-1B visa selection process, prioritizing higher-skilled and better-compensated foreign workers, according to a Federal Register notice. The move comes days after the White House announced a $100,000 annual fee for H-1B visas.

New lottery process based on wages

Under the proposed rules, if H-1B visa demand exceeds the statutory annual limit of 85,000, applications from employers offering higher wages would receive greater weight in the lottery process. The administration said the changes aim to protect American workers from wage suppression and unfair competition.

“This proposal is designed to ensure that H-1B visas are allocated to the most skilled workers in jobs that pay competitive wages, while safeguarding opportunities for American employees,” the notice said.

Trump’s immigration focus

President Trump has pursued a broad immigration crackdown since taking office in January, including efforts to expand deportations and restrict citizenship eligibility for children of undocumented immigrants. Recently, the administration has intensified its focus on H-1B visas, widely used by tech and outsourcing companies to hire specialized foreign talent.

$100,000 H-1B fee sparks controversy

Last Friday, the White House announced that companies would pay $100,000 annually for H-1B visas. While some tech firms urged visa holders to return to the US quickly, the administration later clarified the fee would apply only to new visas.

Impact on companies and small businesses

The proposed regulation is expected to increase total wages paid to H-1B workers by $502 million in fiscal year 2026, with projected growth to $2 billion annually by 2029. However, US Department of Homeland Security estimates suggest around 5,200 small businesses could face economic hardships due to reduced access to foreign talent.

Implementation timeline

US Citizenship and Immigration Services (USCIS) will open a 30-day public comment period starting Wednesday. If finalized, the new process could be implemented for the 2026 lottery, ahead of the March registration period.

H-1B program overview

The H-1B program grants 65,000 visas annually for temporary foreign workers in specialized fields, with an additional 20,000 visas for holders of advanced degrees. India accounted for 71% of approved visas last year, followed by China at 11.7%. Critics argue that the program suppresses wages and limits opportunities for US workers, while supporters, including tech entrepreneur Elon Musk, contend it is vital for bridging talent gaps and maintaining competitiveness.

(With Reuters inputs)