The Trump administration is once again making waves in the U.S. immigration system — this time by proposing a major overhaul to the H-1B visa selection process. Instead of relying on a random lottery, the administration wants to implement a wage-based rule that prioritizes higher-paid workers. But what does this really mean for foreign professionals and the companies that hire them?
What's the Current H-1B Visa Process?
Every year, the U.S. Citizenship and Immigration Services (USCIS) opens up 85,000 H-1B visas — 65,000 for general applicants and an additional 20,000 for those with a U.S. master’s degree or higher. Because demand far exceeds supply, a computerized lottery is used to select who gets a visa.
This system has long been criticized for its randomness, sometimes allowing less qualified or lower-paid applicants to win over more skilled or better-paid workers.
What Is the New Wage-Based Proposal?
Under the Trump administration’s new rule — proposed by the Department of Homeland Security — the H-1B selection process would shift from a lottery to a merit-based system based on four wage levels defined by the U.S. Department of Labor.
- Wage Level 4: Highest-paid and most experienced roles
- Wage Level 3: Above-average salary roles
- Wage Level 2: Entry to mid-level positions
- Wage Level 1: Lower-paid, junior roles
According to the DHS, visa petitions offering the highest wages would be selected first, under the assumption that these roles represent higher skills, education, and job demand.
Why Is This Being Proposed?
The administration argues that this system would incentivize employers to offer better wages, ensure higher-skilled workers get selected, and ultimately protect U.S. labor markets. Acting DHS Deputy Secretary Ken Cuccinelli said the rule aims to align with President Trump’s 2017 "Buy American and Hire American" executive order.
“Allocating visas by wage will disincentivize the abuse of the H-1B program to fill lower-paid, entry-level positions,” said Cuccinelli.
How Will It Affect Foreign Workers?
While this may sound like good news for highly paid professionals in STEM fields, it's a red flag for recent graduates and entry-level workers hoping to start their careers in the U.S.
Critics say the rule would make it nearly impossible for lower wage level candidates — often fresh international graduates — to receive H-1B approval, regardless of their potential or education.
Moreover, sectors like education, research, and nonprofit healthcare — which generally offer lower wages — may struggle to attract foreign talent under the new system.
What Do Critics Say?
Industry groups, universities, and immigration advocates are pushing back. Many claim the proposed changes:
- Favor tech giants and big corporations with deeper pockets
- Discriminate against younger or entry-level talent
- Could create a brain drain by pushing talent to Canada or Europe
In fact, the American Immigration Lawyers Association (AILA) has warned that the rule could be legally challenged and delay the H-1B process if implemented without enough notice or clarity.
When Could This Take Effect?
The rule is still in the proposal phase as of late September 2025. If finalized, it may be implemented in time for the FY 2026 H-1B cap season, which opens in March 2026. However, given potential legal challenges and changes in administration, nothing is set in stone.
What Should Employers and Applicants Do Now?
If you're an employer relying on H-1B workers or an international student planning your career path, now's the time to:
- Monitor USCIS updates and public comments on the rule
- Start early with LCA and petition planning to improve your odds
- Work with experienced immigration attorneys
- Explore alternative work visa options or remote employment setups
Could a Future Administration Reverse This?
Yes — immigration policy is heavily influenced by politics. A change in administration or legal ruling could delay, revise, or completely revoke the proposal. That’s why it’s crucial to stay informed and prepare for multiple scenarios.
Final Thoughts
The Trump administration’s proposal to prioritize H-1B visa candidates by wage aims to reward high earners and protect U.S. jobs — but it also risks narrowing opportunities for talented young professionals. Whether this new rule will lead to smarter immigration or unintended consequences remains to be seen.
For now, all eyes are on USCIS and the final rulemaking process.
FAQs
Q: Is the H-1B lottery being scrapped completely?A: Not yet. It’s still a proposal. If finalized, the random lottery system could be replaced by a wage-based selection as early as FY 2026.
A: Highly skilled and high-wage professionals — mostly in STEM fields and roles offered by tech giants or major corporations.
A: Yes. Legal challenges are likely from immigration advocates and industry groups concerned about discrimination and fairness.
A: Possibly. Sectors like education, healthcare, and nonprofits may struggle if lower-wage petitions are deprioritized.
Want to Dive Deeper?
Check out the original sources for more context:
- Economic Times Report
- H-1B $100K Fee Explained (2025): Who Pays and Who’s Exempt?
- Bloomberg Law Analysis
- Bloomberg News Coverage
Stay tuned with NRI Junction for the latest updates on immigration, H-1B visas, and more.
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