The Trump administration has unveiled sweeping changes to the H-1B visa program, aimed at prioritizing higher-skilled and better-compensated foreign workers. According to a Federal Register notice released Tuesday, the proposal would replace the current lottery-based system with a wage-based selection process, giving preference to applicants offered higher salaries.
The U.S. Department of Homeland Security projects that total wages for H-1B workers will rise to $502 million in fiscal year 2026, climbing to $1 billion in 2027, $1.5 billion in 2028, and stabilizing at $2 billion annually from 2029 to 2035. However, the proposed overhaul is expected to pose challenges for small businesses, with approximately 5,200 firms that currently rely on H-1B talent potentially facing significant labor shortages.
US Citizenship and Immigration Services (USCIS) will open a 30-day public comment period beginning Wednesday, allowing stakeholders to weigh in on the proposed rule.
In a separate but related move, President Donald Trump signed an executive order on Friday introducing a $100,000 fee for new H-1B visa applications, a dramatic increase from the previous $215–$5,000 range depending on company size. The administration argues that these steps will address misuse of the program, ensure that only highly skilled workers are selected, and encourage U.S. employers to prioritize American workers.
The H-1B visa remains a critical pathway for U.S. industries—especially the technology sector—which rely heavily on foreign talent, particularly from India and China. The fee hike, effective September 21, has sparked debate. Critics warn it could discourage innovation and push skilled workers toward more immigration-friendly countries like Canada and the UK, while supporters argue it will help protect American jobs and curb underpayment of foreign workers.
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