The Trump administration has unveiled a proposal to overhaul the H-1B visa system, replacing its long-standing lottery with a salary-weighted selection process that would prioritize higher-paid and more experienced foreign workers.
The Department of Homeland Security’s new draft rule, announced Tuesday, would scrap the random draw and instead assign applicants multiple entries depending on their wage tier. For example, foreign workers in the top pay bracket — earning around $162,500 annually — would have four entries in the pool, while those in the lowest bracket would only have one.
Supporters say the change would help curb abuse of the system and ensure that U.S. employers secure the “best and brightest.” White House spokeswoman Taylor Rogers said the move fulfills President Donald Trump’s promise to “put American workers first” while giving companies more certainty in hiring.
But immigration experts and industry insiders warn the new system tilts heavily toward large, wealthy tech firms while shutting out startups and early-career workers. Nicole Gunara, Principal Immigration Attorney at Manifest Law, said the rule could “reshape how global talent flows into the U.S. economy.” She explained: “An engineer offered $150,000 at Meta could now have multiple entries, while a junior developer at a startup on $70,000 may only get one. This favors established firms and senior hires over younger, emerging talent.”
The proposed change follows Trump’s proclamation last week imposing a $100,000 fee on new H-1B applications — a sharp increase designed to discourage what the White House has called “spamming” of the system. Will Scharf, the White House staff secretary, said the H-1B program is “one of the most abused visa systems in the U.S.”
The implications for India could be profound. Indian IT companies such as Infosys, TCS, and Wipro — among the biggest users of the H-1B program — could face billions in new costs and may be forced to reduce hiring or move jobs back home. Indians currently make up 71% of all approved H-1B applications, according to U.S. Citizenship and Immigration Services data.
The timing of the announcement comes as Indian External Affairs Minister S. Jaishankar and Commerce Minister Piyush Goyal meet with Trump administration officials in New York, with visa rules expected to be high on the agenda.
While Trump has argued the reforms will protect U.S. wages and stop companies from undercutting American workers, critics caution the changes could reduce opportunities for young international graduates and weaken America’s competitive edge in the global talent race.