Key points
- The Trump administration proposed a new H-1B visa allocation system based on skill level and wages, replacing the current lottery system.
- Visa allocation would be divided into four wage bands, with higher-paid workers having a greater chance of selection.
- Workers in the highest wage band ($162,528+) would have four entries into the selection pool, while those in the lowest band would have one.
- This follows a recent $100,000 fee imposed on new H-1B petitions. The proposal is likely to face legal challenges.
The Trump administration has unveiled a significant overhaul of the H-1B visa selection process, shifting from a randomized lottery to a system prioritizing higher-skilled, higher-paid workers. This proposal, released on Tuesday, aims to address concerns that the current system allows for the displacement of American workers.
Instead of a lottery, the new system would categorize prospective H-1B visa recipients into four wage bands based on Department of Labor surveys. The number of entries each applicant receives into the selection pool directly correlates with their assigned wage band, with the highest earners receiving four entries and the lowest earners receiving only one.
This tiered approach, the administration argues, will favor the allocation of visas to higher-skilled individuals while still allowing for employers to hire workers at all wage levels. The proposed change is the latest in a series of efforts by the Trump administration to reform the H-1B program, which has been a frequent target of criticism from conservative groups.
This proposal follows a recent White House proclamation implementing a $100,000 fee on new H-1B petitions, a measure that initially sparked concern among employers and workers before clarification on its application was provided.
Both the new fee and the proposed wage-based selection process are expected to encounter legal challenges. The current H-1B program has a cap of 85,000 visas annually (excluding higher education and research institutions), leading to a competitive selection process.
The USCIS lottery system was previously overhauled last year to address concerns about employers gaming the system through collusion and submitting multiple entries for a single worker. This new proposal, reminiscent of a similar, ultimately withdrawn proposal during the Trump administration’s first term, raises concerns among business groups regarding access for early-career professionals.
Previous attempts at similar wage-based H-1B reforms have faced pushback from business groups and legal experts who argue that the proposals are unlawful due to their conflict with the Immigration and Nationality Act’s requirement for processing visas in the order in which petitions are received.
The administration’s persistent efforts to modify the H-1B program reflect a broader agenda focused on revising employment-based visa programs, a key component of the administration’s immigration policies.
