US Proposes Wage-Based H-1B Visa Selection System in Major Overhaul

1 min read Updated on 23 Sept 2025, 11:34 PM

Reviewed by

Shraddha JScanX News Team

AI Summary

The U.S. Department of Homeland Security has proposed significant changes to the H-1B visa selection process. The new system would prioritize higher-paid professionals using a wage-weighted selection model, replacing the current random lottery. The proposal retains the two-stage selection process favoring advanced U.S. degree holders and maintains the annual cap of 85,000 visas. Application fees would increase to $100,000 for new applicants. The changes aim to attract highly skilled workers, ensure better compensation, and protect American jobs. This reform is expected to significantly impact Indian nationals, who constitute over 70% of H-1B visa holders. The DHS is now seeking public comments on the proposed rule.

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The United States Department of Homeland Security (DHS) has unveiled a proposal to significantly revamp the H-1B visa selection process, potentially reshaping the landscape for skilled foreign workers seeking employment in the country. The proposed changes aim to prioritize higher-paid professionals while safeguarding American jobs.

Key Points of the Proposed H-1B Visa Reform

Wage-Weighted Selection Model: The DHS plans to replace the current random lottery system with a wage-based selection process. This new model would prioritize H-1B visa applications from employers offering higher salaries to foreign workers.
Two-Stage Process Retained: The proposal maintains the existing two-stage selection process that gives preference to candidates with advanced U.S. degrees.
Annual Cap Unchanged: The yearly cap of 85,000 H-1B visas remains in place under the new proposal.
Increased Application Fees: The administration has announced a substantial hike in application fees, raising them to $100,000 for new applicants.

Objectives and Implications

The DHS states that the primary goals of this overhaul are:

To attract highly skilled foreign workers
To ensure better compensation for H-1B visa holders
To protect American jobs from potential wage suppression

Impact on Indian Nationals

The proposed changes are expected to have a significant impact on Indian nationals, who currently make up over 70% of H-1B visa holders. However, it's worth noting that the IT and outsourcing industry's reliance on these visas has decreased in recent years.

Next Steps

The Department of Homeland Security is inviting public comments on the proposed rule, allowing stakeholders to provide feedback before any final decisions are made.

Conclusion

This proposed overhaul of the H-1B visa system represents a major shift in U.S. immigration policy for skilled workers. By prioritizing higher-paid professionals, the government aims to address concerns about the program's impact on American workers while still attracting top global talent. As the proposal moves through the review process, it will likely spark debates among employers, foreign workers, and policymakers about the future of skilled immigration in the United States.