US President Donald Trump’s administration has prepared a major overhaul of the existing lottery-based H-1B visa policy. 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 foreign workers in specialised fields, according to a Bloomberg Law report. The regulation is expected to be made public soon. The new wage-based rule may spell trouble for international aspirants, especially those from India, as entry-level, low-paying jobs may not get priority, said media reports.

Shift from Lottery to Wage-Based Selection

Under the proposal, applicants would be prioritised based on the salaries offered in their job applications. Positions with higher pay would be given preference, with the stated aim of protecting US workers and ensuring visas go to roles that significantly benefit the American economy, reported the TOI.

Currently, the H-1B program has an annual cap of 85,000 visas, with recipients selected via a random lottery, reported the HT. In 2021, the Department of Homeland Security (DHS) suggested replacing the lottery with a four-tier wage-based system. This approach was first pursued under the Trump administration as part of the “Buy American, Hire American” initiative, intended to favour highly paid, highly skilled foreign workers.

History of Attempts and Pushback

Previous efforts to shift to a wage-priority system faced legal and public resistance. The Biden administration withdrew the plan in 2021 after critics warned it could sharply reduce the hiring of foreign workers, particularly fresh graduates. Federal courts have also blocked earlier attempts to narrow eligible occupations and raise wage requirements.

Impact on Graduates and Employers

If implemented, the new system could create significant challenges for recent graduates and entry-level workers, who may struggle to secure high starting salaries. For international students, this would add pressure to negotiate higher pay early in their careers, often a difficult task without extensive experience or networks.

Employers, particularly smaller companies, startups, and non-profits, may find it difficult to meet the higher wage thresholds for junior roles, potentially reducing sponsorships for international hires. This could limit job opportunities for foreign graduates aiming to stay and work in the United States.