Trump Administration Proposes to Scrap H-1B Lottery System
H-1B Visa Rule Changes 2025: Trump Administration to End Lottery, Pushes Merit-Based System. New Rule May Prioritise Higher-paid, HIGH Skilled Foreign Workers
Under the new policy, the U.S. Department of Homeland Security plans to prioritize highly skilled and better-paid workers. This change reflects the administration’s ongoing push for immigration reform that benefits the American workforce.
Last week, President Trump signed a proclamation that adds a $100,000 application fee for every H-1B visa filed. These steps, including the H-1B visa rule changes 2025, aim to discourage system abuse and protect domestic jobs.
“We’re putting American workers first,” said White House spokesperson Taylor Rogers.
Key Features of the H-1B Visa Rule Changes 2025
The current H-1B system uses a lottery to select eligible applicants once the annual cap is reached. The new proposal replaces this random system with a weighted selection process.
Applicants with higher salaries, specialized skills, and advanced degrees will be more likely to receive visas. However, the system will still allow employers to hire across different wage levels.
This change supports a merit-based immigration model, which the administration claims will reduce fraud and wage suppression.
Critics argue that the H-1B visa rule changes 2025 could make it harder for entry-level workers to enter the U.S. job market. Still, officials maintain that this will prevent companies from undercutting wages using cheaper foreign labor.
Indian Tech Firms Could Face Major Impact
Indian nationals account for over 71% of all H-1B approvals, according to USCIS data. Tech giants such as Infosys, TCS, and Wipro rely heavily on H-1B workers to operate in the U.S.
The new $100,000 fee and selection process may significantly increase operating costs for these companies. This could lead to reduced hiring in the U.S. or more jobs being moved back to India.
White House staff secretary Will Scharf called H-1B one of the “most abused” visa categories. He emphasized the need for a system that supports both U.S. competitiveness and workplace integrity.
Diplomatic Concerns Over H-1B Visa Rule Changes 2025
The announcement comes as Indian officials, including External Affairs Minister S. Jaishankar, visit the U.S. to meet Trump administration leaders. Visa reforms are expected to be high on the agenda during talks in New York.
India is likely to raise concerns over how these changes may affect its skilled workforce abroad.
The DHS has opened the proposal for public feedback. If finalized, the H-1B visa rule changes 2025 will take effect before the next application season.
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