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US Plans Overhaul of H-1B Visa; DHS Pushes Wage-based Selection, US$100,000 Levy
Moneylife Digital Team 24 September 2025
Personal Finance
In a sweeping overhaul of the H-1B visa programme, the US department of homeland security (DHS) has proposed a weighted lottery system that would give higher chances of selection to foreign workers in higher salary brackets, while also imposing a steep US$100,000 one-time fee on new visa petitions.
 
According to a proposed rule published in the federal register, US citizenship and immigration services (USCIS) would abandon the current random lottery format for cap-subject H-1B petitions in favour of a tiered weighting mechanism based on wage levels. 
 
Under the plan, applicants in the highest wage tier — those earning US$162,528 or more annually — would receive four entries into the lottery pool, while those in the lowest wage tier would receive just one. 
 
DHS says the change would better align the programme with congressional intent by favouring 'higher skilled and higher paid' workers.
 
The proposed changes are part of president Donald Trump’s renewed focus on tightening the H-1B system which the White House has long described as 'one of the most abused visa categories'. Last week, president Trump signed a proclamation introducing the US$100,000 fee for fresh H-1B applicants, arguing it would push US companies to 'hire American workers'.
 
Industry analysts and banks warn of significant consequences. Economists at JPMorgan Chase & Co estimate the additional fee could reduce immigrant work authorisations by 5,500 a month, disproportionately affecting technology companies and Indian professionals, who account for over 70% of H-1B approvals. Nearly two-thirds of all H-1B visas in FY23-24 went to computer-related roles, with half tied to professional, scientific and technical services.
 
The bank’s analysis, cited by Bloomberg, says the fee hike and new wage-weighted lottery could discourage US employers from sponsoring mid-level roles, limiting visas to senior or high-paying positions. This would hit Indian engineers, developers and consultants especially hard, potentially delaying IT projects and driving up staffing costs. “The changes could accelerate the offshoring of jobs to lower-cost destinations,” the note warned.
 
DHS acknowledged in its proposal that the rule could impose 'significant economic impact' on about 5,200 small businesses currently reliant on H-1B workers, and estimated that total wages paid to H-1B beneficiaries would climb by US$502mn (million) in FY25-26, rising to US$2bn (billion) annually by FY28-29.
 
While the government argues the reforms will reduce wage suppression and unfair competition for American workers, critics say they will raise costs for US companies, slow down hiring, and divert skilled talent to friendlier destinations such as Canada and the UK. Tech industry leaders, including JPMorgan's chief executive officer (CEO) Jamie Dimon, have voiced concern that restricting access to global talent could erode America’s competitive edge in innovation.
 
The proposed regulation marks the Trump administration’s latest attempt to reshape the H-1B system, after earlier efforts were stalled in courts or withdrawn by the Biden administration in 2021. If finalised, the new framework could take effect for the 2026 H-1B lottery cycle, which opens for registration in March 2025.
 
India, the single largest beneficiary of the programme, stands to be most affected. DHS data show Indian nationals received 71% of H-1B visas last year, compared to 11.7% for China. With higher fees and reduced chances for lower-wage applicants, the impact on Indian IT services exports, employment opportunities abroad and remittance flows could be severe.
 
Comments
iaminprabhu
1 month ago
This WHAKO must be given "#Nobel Prize of FOOLS" as Lolipop to make hus EGO BALOON & Burst!
Reply
parimalshah1
1 month ago
Trump and US are unreliable allies and back stabbers. I think government is wasting time and resources discussing trade deal. POTUS is hell bent to trouble India. Our ministers tell POTUS on the face that he is a megalomaniac psychopath and does not at all deserve the position. Our Gen Z should boycott all things American.
Reply
Personal Finance
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On 19th September, the US president Donald Trump dropped a new bombshell. He ordered that all new petitions for H-1B visas filed on behalf of workers outside America would now carry a US$100,000 fee. The measure, which will last for a...
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Lessons from the Past 137: The Common Touch
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