Washington, D.C.: The White House’s Office of Information and Regulatory Affairs has approved a proposed regulation that could fundamentally change the way H-1B visas are allocated, signaling a potential shift from the current random lottery system to a wage-based approach. The move, according to a Bloomberg Law report, suggests the new rule may be made public in the near future. While the U.S. Citizenship and Immigration Services (USCIS) has not yet released specific details, the regulation is expected to resurrect a plan from the Trump administration.
The H-1B visa program, which is vital to the technology sector, has an annual cap of 85,000 visas. Currently, when the demand for these visas exceeds the cap, a random lottery is conducted to determine which employers can file visa petitions.
The proposed regulation is anticipated to implement a system that prioritizes H-1B applicants based on their offered wages. This approach, first attempted by the Department of Homeland Security (DHS) under the Trump administration, would rank applications into four categories, giving preference to higher-paying positions. This was part of the “Buy American, Hire American” initiative, which aimed to ensure that highly qualified foreign workers who were paid significantly higher salaries were given priority.
A similar plan was withdrawn by the Biden administration in 2021 after facing significant public opposition. Critics had argued that the wage-based system would drastically reduce the number of eligible foreign workers. Previous attempts to narrow the scope of qualified occupations and increase wage floors under the program were also blocked by federal courts.
Given the new rule’s approval, the government appears poised to try once again to amend the H-1B visa application process. The move reflects a long-standing criticism of the H-1B program, particularly from some quarters of the government, who claim it is often exploited to bring in lower-paid foreign workers, to the detriment of American employees. The previous administration had tightened program restrictions with the goal of safeguarding American jobs and wages, and the current proposal aligns with that objective.