The Trump administration has unveiled a groundbreaking proposal that seeks to overhaul the H-1B visa selection system. Announced on Tuesday, September 23, 2025, this new framework would prioritize candidates based on their skills and salary levels, a significant departure from the current lottery. This development closely follows a White House announcement on Friday, September 19, 2025, introducing a substantial $100,000 fee for new H-1B visa applications.
Should this proposal be finalized, it will introduce a new tiered system. When the annual demand for H-1B visas surpasses the legal cap of 85,000, applications from employers offering higher wages will receive preferential treatment. This strategic shift is designed to safeguard American workers from potential wage competition posed by foreign professionals, according to official statements. The introduction of the $100,000 visa fee also sparks discussions about its potential impact, particularly on demographics such as young Indian women seeking these visas.
Since taking office, President Donald Trump has initiated a broad campaign to tighten immigration policies, encompassing plans for large-scale deportations and efforts to restrict birthright citizenship. In recent days, the administration has particularly scrutinized the H-1B program, a vital pathway for tech and outsourcing firms to hire skilled international talent. A key component of this intensified focus was Friday’s announcement that companies would be required to pay an annual $100,000 fee for H-1B visas.
This sudden policy shift caused considerable alarm among major tech companies, prompting urgent advisories for H-1B visa holders to remain in or swiftly return to the U.S. Amidst the ensuing confusion, the White House later clarified that the significant $100,000 fee would specifically apply to new visa applications, not renewals.
Rethinking the H-1B Selection Lottery
The proposed regulation, formally introduced on Tuesday, aims to fundamentally alter the established H-1B lottery system. In years where visa applications outstrip the available supply, the new rules would implement a tiered selection process, significantly increasing the odds for positions offering higher salaries.
It’s important to note that the path to finalizing such a regulation can often span many months, or even years. However, the official notice hinted at an expedited timeline, suggesting these new rules might be operational in time for the 2026 H-1B lottery, well before its usual March registration.
According to estimates from the U.S. Department of Homeland Security, the aggregate wages paid to H-1B workers are projected to rise to $502 million in fiscal year 2026, commencing October 1.
The notice suggested that the new rules could be in place for the 2026 lottery.
Further projections indicate a gradual increase in average wages: by $1 in fiscal year 2027, $1.5 in fiscal year 2028, and an additional $2 annually from fiscal years 2029 through 2035.
However, this policy shift isn’t without its potential drawbacks. The DHS warns that approximately 5,200 small businesses, which currently rely on H-1B visas, could face substantial economic repercussions stemming from a reduction in available skilled labor.
The U.S. Citizenship and Immigration Services (USCIS), the agency behind this proposal, has opened a 30-day public comment period, beginning Wednesday, allowing stakeholders and the public to provide feedback on these proposed changes.