Trump Administration Proposes Wage-Based โSelection for โH-1Bโ Visas
Theโ Trump administration has unveiled a proposed rule โto overhaul the H-1B visa selectionโข process, prioritizing applicants with higher โคwages and skill levels. Released Tuesday with aโค correspondingโข notice inโค theโ Federal Register,โข the plan โคcomes shortly after a Friday announcement introducing a potential $100,000 fee for H-1B visas.
Currently, the H-1B program, which โฃallows U.S. companies to employ foreign workers in specialized fields,โ utilizes a lottery system when demand โexceeds theโฃ annual cap ofโ 85,000 visas (65,000 regular โvisas and 20,000 for thoseโข with advanced degrees). The proposed regulation would shift this system to a wage-tiered approach, โincreasing the likelihood of selection for applications associated with higher-payingโ jobs.
Theโ administration states the change โฃis intended to protect American workers from wageโข competition with foreign labor. Accordingโ to estimates from the Department ofโค Homeland โSecurity โข(DHS), the new rules could leadโค to an increase in total wages paidโข to H-1B workers, reaching $502 millionโฃ inโค fiscal โขyear 2026, rising โto $2 billionโ annually by 2029-2035.
However, DHS also anticipates a meaningful economic impact on approximately 5,200โข small businesses currently utilizing the H-1B program, potentially due to labor shortages.
Thisโค is notโ the first attempt to modify the H-1B selectionโ process. A โsimilarโ regulation proposed during Trump’s previous presidency (2017-2021)โข was blocked by a federal judge โฃin 2021 and โฃlaterโค withdrawn by the biden administration.
The proposed rule is โnow open for a 30-day public commentโ period, beginning Wednesday. If finalized, the changes couldโ be implemented for the 2026 lottery, impacting registrations in March โof that year.
Government dataโฃ reveals India is the โคprimary beneficiary of theโข H-1B program, receiving 71% of approved visas last year, followedโค by Chinaโ at โ11.7%. The programโ is supported by figures like Elon Musk, a naturalized U.S. citizen who previously held an H-1B visa, who argue it helps fill critical talent gaps.โ Conversely, critics contend the program can depress wagesโข and displace qualified American workers.