The Trump administration has proposed sweeping changes to the H-1B visa program. The proposed amendments would alter the visa selection process to prioritize higher-skilled and better-paid foreign workers. According to the Associated Press (AP), this information was recently released in a Federal Register notice.
This new proposal was released on Tuesday, following the White House’s announcement last Friday of a new annual fee of $100,000 for H-1B visas. H-1B visas are considered a key means of recruiting skilled foreign workers for technology and outsourcing companies.
Higher Salaries Will Now Get Priority
According to the report, the notice clearly states that if the number of visa applications exceeds the legal limit of 85,000 in a fiscal year, employers paying higher salaries will be given greater weighting. The primary purpose of this drastic measure is to protect American workers from illegal wage competition from foreign workers.
Since taking office in January 2017, US President Donald Trump has taken several steps to tighten immigration policies, including a massive crackdown on illegal immigrants, changes to citizenship rules, and specifically, controls on the H-1B visa program.
Confusion Among Visa Holders
Following the White House announcement last Friday, major tech companies advised visa holders to remain in the US or return immediately, causing considerable confusion and panic among visa holders. The White House later clarified that the $100,000 fee would only apply to new visa applications. This proposal hurt Wall Street. Shares of Amazon, the largest issuer of H-1B visas, have fallen by nearly 5 percent over the past five days.
Finalization of Proposed Rules Will Take Time
Under the proposed rules released last Tuesday, if demand for visas exceeds supply, the current lottery process would be eliminated, and a salary-based selection process would be implemented. This will prioritize higher-paying jobs. The rule is currently in the proposal stage and could take months or even years to finalize. The notice indicates that these new rules could take effect as early as the 2026 lottery season, before registration opens in the first week of March.
According to the US Department of Homeland Security (DHS), total wages paid to H-1B workers will increase by approximately $502 million in fiscal year 2026, a figure that is projected to increase to $2 billion between fiscal years 2029-2035. DHS also warned that the approximately 5,200 small companies that currently use H-1B visas could be severely affected by this change and face labor shortages.