White House to replace H-1B visa lottery with wage-based selection process: Impact on Indians

The White House’s Office of Information and Regulatory Affairs has approved a proposed rule that could reshape how H-1B visas are allocated to specialty occupation workers, according to a Bloomberg Law report. The move suggests the new rule may be publicly released soon.

Although the US Citizenship and Immigration Services (USCIS) has not yet disclosed details about the regulation, the proposed rule is expected to revive a plan from the Trump administration that would prioritise H-1B applicants based on wages rather than the current random lottery system.

Currently, the H-1B program, which is heavily utilised by the tech industry, has an annual cap of 85,000 visas. Each year, a random lottery determines which employers can proceed with visa petitions. In 2021, the Department of Homeland Security (DHS) proposed a plan to allocate H-1B visas based on wages, divided into four tiers, to prioritise higher-paid positions.

The old system vs the new wage-based system

Under the Trump administration, DHS pushed to replace the random selection process with a wage-priority system. The proposed rule would rank petitions based on wages offered, favouring higher-paying jobs in line with the administration’s “Buy American, Hire American” policy. This initiative aimed to ensure that H-1B visas favoured highly skilled foreign workers who were compensated at higher wage levels.

However, the Biden administration withdrew this proposal in 2021 after significant public opposition. Over 1,000 comments were submitted criticising the change, arguing it could drastically reduce the number of eligible foreign workers. Federal courts also blocked earlier attempts to raise wage floors and tighten the definition of qualifying jobs under the program.

The approval of the new rule suggests that the government may once again push for changes to the H-1B visa allocation process. Former President Donald Trump repeatedly criticised the H-1B program, claiming it was often misused to bring in lower-paid foreign workers at the expense of American employees, particularly in the tech sector. His administration sought to protect American jobs and wages through tighter control over the program.