New Delhi: The Trump administration has proposed a significant overhaul of the H-1B visa program that is expected to disproportionately impact Indian entry-level workers, who are currently the largest beneficiaries of the program. The proposed changes, which come on the heels of a new $100,000 visa fee, would replace the existing random lottery system with a weighted, wage-based allocation.
India has been the biggest recipient of H-1B visas, accounting for 71% of the 399,395 visas approved in 2024, far outpacing the next largest recipient, China, with 11.7%. Under the new proposal, if the number of annual H-1B applications exceeds the 85,000 statutory limit, the selection process will favor applicants with higher wage offers.
The Department of Homeland Security (DHS) proposal, as outlined in reports from Bloomberg and other news agencies, would categorize applicants into four wage levels based on data from the Department of Labor. Those in the highest wage bracket (Level 4) would receive four entries into the selection pool, while those in the lowest (Level 1), which primarily includes entry-level workers, would receive only one entry.
This shift from a purely random lottery to a wage-based system is a direct response to claims by conservative groups that companies misuse the H-1B program to hire cheaper foreign labor and undercut American wages. The move is designed to prioritize “higher-skilled and higher-paid aliens,” according to the DHS proposal.
Immigration experts and analysts, including Silicon Valley-based lawyer Sophie Alcorn, believe that this change will hit entry-level workers the hardest. Since a large portion of H-1B recipients from India are young professionals in their mid-twenties, they are most likely to be in the lowest wage bracket. This would significantly reduce their chances of securing a visa, even if they have multiple job offers.
The proposed changes are the latest in a series of reforms from the Trump administration aimed at tightening immigration policies. In addition to the wage-based lottery, the recent proclamation imposing a $100,000 fee for new H-1B applications has sent shockwaves through the tech and outsourcing industries. This steep fee is an unprecedented increase from the previous cost, which rarely exceeded $5,000.
Both the fee hike and the new lottery system are expected to face legal challenges. Critics argue that these changes are not only unfair but also potentially unlawful, as they may bypass congressional authority to set visa parameters.