The Trump administration's plans to overhaul the existing H-1B lottery system in a way that would favour higher-skilled and higher-paid foreign workers stands to hurt entry-level talent, especially Indians.
India is currently the biggest beneficiary of the H-1B visa programme, and hence stands to lose the most with this proposed reform. In 2024, out of 399,395 approved H-1B visas, Indians accounted for a dominant 71%, while China followed far behind with only 11.7%.
After the steep hike in the H-1B visa fee to $100,000, the US Department of Homeland Security (DHS) has now proposed replacing the random lottery with a weighted selection system that prioritises higher-paid applications.
If annual requests for the H-1B visas exceed the statutory limit of 85,000 or if demand surpasses supply, the allocation process would prioritise applications by employers paying higher wages.
Will selection be strictly based on higher wages?
The DHS has proposed changes prioritising applications of higher-paid foreign workers in the H-1B programme, but it doesn't mean the visa allocation would only be based on salary. That process “would favor the allocation of H-1B visas to higher skilled and higher paid aliens, while maintaining the opportunity for employers to secure H-1B workers at all wage levels,” the proposal said.
{{/usCountry}}The DHS has proposed changes prioritising applications of higher-paid foreign workers in the H-1B programme, but it doesn't mean the visa allocation would only be based on salary. That process “would favor the allocation of H-1B visas to higher skilled and higher paid aliens, while maintaining the opportunity for employers to secure H-1B workers at all wage levels,” the proposal said.
{{/usCountry}}According to a Bloomberg report, under the plan, applicants will be placed into four wage levels using Labour Department data. Those in the top wage level will get four chances in the selection pool, while those in the lowest level will get just one.
How India's entry-level workers would be hit
Since India benefits most from the H-1B visa programme, the citizens stand to lose the most from US President Donald Trump's big-proposed changes, be it the $100,000 visa fee or the skill-level and wage-based allocation.
According to the Heritage Institute, a conservative think tank, entry-level workers from India and China in their mid-twenties filled most of H-1B positions, and worked on below-median wages. Sophie Alcorn, a Silicon Valley based immigration lawyer, also believes that the overhaul proposal stands to affect entry-level foreign workers the most.
“Having a wage based lottery system would decrease total demand for skilled immigration, particularly affecting aspiring immigrants who are entry-level workers,” the lawyer said.
After the $100,000 visa fee hike, the proposed changes to the H-1B allocation system come amid claims by US conservatives that companies misuse the program to hire cheaper foreign workers and undercut American talent.
Both the H-1B visa fee hike and the wage-based visa selection proposal are likely to be challenged legally.
Also Read: H-1B visa fee higher than annual salary of most H-1B visa holders