The United States is preparing for a major shake-up in its immigration system, targeting two of the most sought-after programs for foreign workers — the H-1B visa and the green card process.
On Tuesday, US Commerce Secretary Howard Lutnick confirmed that significant changes are on the way, claiming the current system unfairly disadvantages American workers.
H-1B Visa Called a “Scam” by US Commerce Secretary
In a strongly worded post on X (formerly Twitter), Lutnick criticized the H-1B visa program, which is particularly popular among Indian IT professionals.
“The current H-1B visa system is a scam that allows foreign workers to take American jobs. Now is the time to hire American,” he said.
Speaking to Fox News, Lutnick revealed he is directly involved in redesigning the visa program to better prioritize US citizens.
Green Card Changes – Introducing the ‘Gold Card’
Lutnick also signaled that the US green card system will soon see big changes.
“The average American earns $75,000 annually, while the average green card holder makes $66,000. We’re essentially importing workers from the bottom quartile — that needs to change,” he stated.
One of the proposed reforms includes creating a new ‘Gold Card’ – a residency option aimed at attracting highly skilled talent and wealthy investors. Under this plan, foreign nationals who invest $5 million in the US would be offered permanent residency.
What is the H-1B Visa?
The H-1B visa is a non-immigrant visa that allows US employers to hire foreign professionals in specialized fields such as technology, engineering, and healthcare. Applicants must have at least a bachelor’s degree (or equivalent experience), and the visa typically lasts for up to six years. Due to high demand, it operates on an annual lottery system, with 85,000 visas available each year:
- 65,000 for general applicants
- 20,000 for those with advanced US degrees
A Shift Towards a Wage-Based Selection Process
On August 8, the US Office of Information and Regulatory Affairs approved a draft proposal titled “Weighted Selection Process for Registrants and Petitioners Seeking to File Cap-Subject H-1B Petitions”.
Immigration experts believe this could replace the random lottery system with a wage-based selection process, giving preference to applicants in higher-paying roles.
“This is similar to a Trump-era plan from 2021 that sought to prioritize high-wage positions,” explained Sheela Murthy, President of Murthy Law Firm. “If implemented, entry-level foreign workers, especially recent graduates, might have very little chance of securing a visa.”
How the Wage Tiers Work
The proposed system would rank applicants using four wage levels based on the US Department of Labor’s data:
- Level 1 – Entry-level positions
- Level 2 – Early-career professionals with some experience
- Level 3 – Experienced workers with advanced skills
- Level 4 – Senior-level, highly specialized experts
Under this model, Level 4 applications would be prioritized, reducing opportunities for lower-level workers.
Legal and Political Implications
The proposed changes do not require congressional approval, but experts warn they could face legal challenges.
“If the rule violates the original intent of the H-1B law, it could be struck down in federal court,” said immigration attorney Joel Yanovich.
Impact on Indian Professionals
These reforms could significantly affect Indian tech professionals, who are the largest beneficiaries of the H-1B program.
- In FY 2023, Indians received 72.3% of all approved H-1B petitions (279,400 out of 386,300 approvals).
- In FY 2024, the share remained high at 71% (283,400 out of 399,400 approvals).
Given India’s dominance in H-1B approvals, any move towards a wage-based or investor-focused system could drastically alter opportunities for Indian workers in the US tech industry.
Final Thoughts
The Biden administration appears poised to transform how foreign talent enters the US workforce. While proponents argue these changes will protect American jobs and attract top global talent, critics warn they may shut out entry-level professionals and reduce diversity in the labor market.
One thing is clear: The future of H-1B visas and green cards is at a turning point — and the world’s largest pool of tech talent, India, will be watching closely.
