The White House has approved a proposal that could completely alter the process for issuing H-1B visas to foreign workers, including many Indians. The plan would replace the current random lottery system with a method that prioritises applicants who are offered higher salaries.
This move revives an idea first introduced during Donald Trump’s presidency. At the time, the administration argued that the H-1B program was being misused to bring in lower-paid foreign workers, which they believed hurt wages and opportunities for Americans, especially in the tech industry. While the Biden administration later withdrew the proposal in 2021 after public pushback, the new approval means the wage-based system could make a comeback.
How the H-1B system works now
The H-1B visa program allows US employers to hire foreign workers in specialty occupations, often in science, technology, engineering, and mathematics (STEM) fields. There is an annual cap of 85,000 visas, including 20,000 reserved for workers with advanced degrees from US universities.
Currently, when applications exceed this cap, a lottery system is used. This means employers submit registrations, and candidates are randomly chosen, regardless of their salaries or skill levels. Over the years, the lottery system has faced criticism for not prioritising the most skilled or highly paid workers.
What the new proposal means
Under the proposed rule, H-1B applications would no longer be selected at random. Instead, they would be ranked based on the wages offered to the applicant. Higher salaries would be given priority, moving down the list until the annual cap is reached.
This “wage-priority” method is designed to favour highly skilled professionals and positions that pay above average. It could also discourage companies from offering lower salaries to foreign workers to cut costs.
The Department of Homeland Security (DHS) and the US Citizenship and Immigration Services (USCIS) have sent the proposed regulation, called the “Weighted Selection Process for Registrants and Petitioners Seeking To File Cap-Subject H-1B Petitions,” to the White House’s Office of Information and Regulatory Affairs, which cleared it on August 8, 2025.
Possible timeline
If approved without legal challenges, the new selection system could be in place by March 2026, in time for the FY 2027 H-1B cap season. That means the next application cycle could already be operating under a wage-based selection system instead of a lottery.
Impact on Indian workers
Indians are the largest group of H-1B visa holders, especially in the tech industry. A wage-based system could benefit highly experienced Indian professionals working in senior or specialized roles, as their higher salaries might push them to the front of the line.
However, it could also make it harder for fresh graduates or entry-level workers from India to secure an H-1B, as these positions typically offer lower starting salaries. This may particularly affect students graduating from US universities who hope to stay and work in the country.
The H-1B program has long been a gateway for skilled foreign talent to work in the US, but it has also been a point of political debate. Supporters of the wage-based approach believe it will bring in the “best and brightest” talent. Critics fear it could shut out promising but less experienced workers and make it harder for smaller companies to compete with big firms offering top pay.
If this rule is implemented, H-1B hopefuls will need to pay close attention to their job offers, as the size of the future paycheck could determine whether they receive a visa at all.
