The Trump administration unveiled a new proposal on Tuesday to overhaul the H-1B visa selection process. The plan would prioritize applications for higher-skilled and better-paid workers, according to a notice published in the Federal Register. This comes shortly after the White House announced a new $100,000 fee for H-1B visas.
Under the proposal, if demand exceeds the annual cap of 85,000 visas, applications from employers offering higher wages would receive priority. The administration said this change is designed to protect American workers from unfair wage competition.
Since taking office, President Donald Trump has pursued strict immigration reforms, including mass deportations and efforts to restrict citizenship for children of undocumented immigrants. Recently, his administration has turned its focus to the H-1B program, which technology and outsourcing companies use to hire skilled foreign professionals.
The new proposal would replace the existing lottery system with a wage-tiered approach. Higher-paying positions would have a greater chance of securing a visa when applications exceed supply. The regulation could be finalized in time for the 2026 lottery, ahead of the March registration period.
The Trump administration previously tried to reform the H-1B process during his 2017–2021 presidency but faced setbacks from federal courts. A similar regulation was delayed under Joe Biden and later struck down by a federal judge in 2021 before being withdrawn.
The Department of Homeland Security estimates that wages paid to H-1B workers could rise to $502 million in fiscal year 2026, climbing to $2 billion annually by 2029. However, the proposal may negatively impact about 5,200 small businesses that rely on H-1B labor.
U.S. Citizenship and Immigration Services will open a 30-day public comment period beginning Wednesday.
The H-1B visa program remains critical for U.S. employers in specialized industries. Advocates, including Elon Musk, argue it fills talent shortages and keeps U.S. firms globally competitive. Critics, however, contend the program depresses wages and sidelines American workers.
Last year, India accounted for 71% of H-1B visa approvals, while China was the second-largest recipient at 11.7%. The program allocates 65,000 visas annually, plus an additional 20,000 for workers with advanced degrees.
