**WASHINGTON D.C.** — The Trump administration on Tuesday unveiled a proposal to fundamentally reshape the H-1B visa selection process, aiming to favor foreign workers who are both higher-skilled and command better wages. This move follows a White House proclamation last Friday that introduced a hefty $100,000 fee for certain H-1B visas.
If finalized, the new selection system would grant significantly more weight to applications from employers offering higher salaries, particularly when the annual demand for the 85,000 available visas exceeds the statutory limit, according to a Federal Register notice detailing the plan. The administration states this shift is designed to better shield American workers from what it describes as unfair wage competition from foreign counterparts.
President Donald Trump initiated a broad crackdown on immigration upon taking office in January, pursuing policies such as mass deportations and attempts to restrict citizenship for children of undocumented immigrants. In recent days, his administration has intensified its scrutiny of the H-1B program, a crucial avenue for tech and outsourcing companies to recruit skilled foreign talent. The administration initially caused confusion last Friday by announcing a $100,000 annual fee for H-1B visas, which prompted some major tech companies to urge visa holders to return to the U.S. or remain within its borders. The White House later clarified that this fee would apply only to new visas.
The proposed regulation, posted on Tuesday, would replace the current lottery system used when visa demand outstrips supply. It would establish wage tiers, ensuring that positions offering higher pay have a greater chance of selection. While the process to finalize such a regulation can span months or even years, the notice suggests these new rules could be in effect for the 2026 lottery, ahead of its usual March registration period.
During his 2017-2021 presidency, Trump made previous attempts to reform the H-1B process, but these efforts were often hampered by federal courts and a lack of time towards the end of his term. A similar regulation aimed at prioritizing higher-paid applicants was delayed by Trump’s Democratic predecessor, Joe Biden, before it could take effect in March 2021. It was subsequently blocked by a federal judge in September 2021 and withdrawn by the Biden administration three months later.
Estimates from the U.S. Department of Homeland Security (DHS) suggest that the total wages paid to H-1B workers could rise by $502 million in fiscal year 2026, which commences on October 1. This increase is projected to grow to $1 billion in fiscal 2027, $1.5 billion in fiscal 2028, and $2 billion annually from fiscal 2029 through 2035. However, the DHS also estimates that approximately 5,200 small businesses currently utilizing H-1B visas could face significant economic hardship due to the potential loss of skilled labor.
The U.S. Citizenship and Immigration Services (USCIS), which issued the proposal, will open a 30-day public comment period starting Wednesday.
The H-1B visa program is widely supported by many American firms, who argue it is essential for hiring skilled workers to bridge talent gaps and maintain competitiveness in the global market. Notable supporters include Elon Musk, a naturalized U.S. citizen born in South Africa who once held an H-1B visa himself. Conversely, critics contend that the program allows companies to suppress wages and sideline qualified American workers who could otherwise fill these jobs.
Government data from last year shows India was by far the largest beneficiary of H-1B visas, accounting for 71 percent of approved recipients, with China a distant second at 11.7 percent. The H-1B program provides 65,000 annual visas for employers bringing in temporary foreign workers in specialized fields, along with an additional 20,000 visas reserved for workers holding advanced degrees.
