The H-1B visa program — a lifeline for thousands of skilled professionals, especially from India — could be in for a major shake-up. The White House, under President Donald Trump, has approved a proposed regulation that would fundamentally change how these visas are allocated. Instead of relying on the existing random lottery system, the new approach would prioritize applicants based on their offered salary.
What’s Changing in the H-1B Visa Process?
According to a Bloomberg Law report, the White House’s Office of Information and Regulatory Affairs (OIRA) has cleared a proposal that may soon become public. This proposal revives an earlier Trump administration plan to move away from a lottery-based selection process toward a wage-priority system.
Currently, the H-1B program issues 85,000 visas annually for specialty occupations — a quota that is quickly oversubscribed every year. Employers file petitions, and a random lottery decides which ones get through.
The new regulation aims to flip this system on its head. Instead of pure chance, visas would go to applicants with the highest salary offers first, following a tiered wage structure. This could mean that top-paying tech, engineering, and healthcare roles are prioritized, potentially pushing out lower-paid positions often filled by fresh graduates or entry-level workers.
The Trump Administration’s Stance
President Trump has long criticized the H-1B visa program, arguing that it’s been abused by companies to bring in cheaper foreign labor at the expense of American workers. During his earlier term, the Department of Homeland Security (DHS) proposed a similar rule to allocate H-1B visas based on four wage categories — with the highest wage levels getting first preference.
This proposal was part of the “Buy American, Hire American” policy, which aimed to protect U.S. wages and ensure that only the most skilled and well-paid foreign professionals could enter the workforce.
However, in 2021, the Biden administration withdrew the rule after public backlash and concerns that it would dramatically reduce opportunities for foreign professionals, particularly in entry- and mid-level positions.
Legal Hurdles and Past Attempts
The Trump administration previously faced multiple legal challenges over H-1B reforms. Federal courts blocked efforts to narrow the scope of qualifying occupations and raise minimum wage thresholds for visa eligibility.
Now, with the White House giving the green light to this updated wage-priority proposal, there’s speculation that similar legal challenges could arise once the details are made public.
Impact on Indian IT Professionals
Indians have historically been the largest beneficiaries of the H-1B visa program, with many working in the U.S. tech sector. If the new wage-based system is implemented:
- Senior-level, highly paid roles may still secure visas.
- Entry-level or lower-wage roles could face significant barriers.
- Indian IT outsourcing companies that rely on bulk H-1B hiring for mid-level roles may see approval rates drop sharply.
Why This Matters Now
With the global demand for skilled tech talent increasing, this proposed rule could reshape the way companies hire from abroad. Employers may need to adjust hiring strategies to focus on higher-paying roles if they want to secure H-1B visas for candidates.
At the same time, skilled professionals aiming to work in the U.S. might need to negotiate for higher salaries or target employers willing to meet top-tier wage levels.
What Happens Next?
The U.S. Citizenship and Immigration Services (USCIS) has not yet published the full details of the regulation, but its approval by OIRA suggests it could be released soon. Once public, the rule will likely go through a period of public comment before final implementation.
If enacted, this would mark one of the most significant overhauls of the H-1B visa system in recent years — potentially favoring high-wage, high-skill jobs while reducing chances for lower-paid positions.
Bottom Line:
The proposed wage-priority system could benefit top-tier professionals but make it harder for fresh graduates and lower-paid skilled workers to enter the U.S. job market. For Indian IT professionals, this could mean fewer opportunities unless they can secure premium salary offers.
With policy changes on the horizon, now is the time for both employers and aspiring H-1B applicants to rethink their strategy in navigating the competitive U.S. work visa landscape.
