US govt proposes new H-1B visa system, favours high-skilled, high-waged workers
Washington: The Trump administration has proposed a major overhaul of the H-1B visa programme, shifting the selection process toward prioritising higher-skilled and better-paid workers. The plan, detailed in a Federal Register notice on Tuesday, marks a significant change to the system long used by US companies to hire foreign talent, particularly in the technology sector.
Currently, H-1B visas are allocated through a lottery if applications exceed the annual cap. Under the new proposal, jobs offering higher wages would receive greater preference, creating a tiered system aimed at curbing what officials describe as “misuse of the programme”. The Department of Homeland Security (DHS) projects that the shift would boost overall wages for foreign workers by $502 million in fiscal year 2026, climbing to $1 billion in 2027, $1.5 billion in 2028, and $2 billion annually from 2029 through 2035.
The notice also acknowledged potential downsides, particularly for smaller firms. DHS estimated that around 5,200 small businesses that rely on H-1B workers could suffer significant economic impacts due to limited access to skilled labour.
The announcement follows President Donald Trump’s executive order on September 19 imposing a $100,000 fee on new H-1B applications, a sharp jump from the earlier range of $215 to $5,000, depending on company size. The fee increase, which took effect on September 21, is designed to complement the policy shift by discouraging what the administration views as overuse of the visa programme.
US Citizenship and Immigration Services (USCIS), which issued the proposal, will open a 30-day public comment period beginning Wednesday.
Since its creation in 1990, the H-1B programme has been central to employment-based immigration, especially for workers from India and China. Industry groups warn that the new measures, combined with the fee hike, could hinder innovation and push global talent toward countries such as Canada and the United Kingdom. Supporters counter that the wage-based system protects American workers by limiting competition from lower-paid foreign employees.
