The Trump administration on Tuesday unveiled a proposal to overhaul the H-1B visa programme, prioritising higher-paid and more skilled foreign professionals. The move follows a one-time $100,000 fee introduced for new H-1B applications last week.
According to a notice in the Federal Register, the new rules would scrap the existing lottery system. Applications exceeding the annual cap of 85,000 visas would be allocated preferentially to employers offering higher wages, Reuters reported.
Officials argue the reform is intended to shield American workers from wage suppression linked to hiring lower-paid foreign professionals. The initiative forms part of the administration’s broader plan to tighten immigration and reshape the US labour market.
The H-1B programme, widely used by technology and outsourcing companies, allows recruitment of skilled professionals such as software engineers, data analysts, and scientists. Indian nationals remain the largest recipients of these visas.
Also read: H-1B visa fee hike may hit US more than India: GTRI
The announcement followed confusion in the tech sector after Commerce Secretary Howard Lutnick stated that companies would face a $100,000 annual fee per H-1B visa. White House Press Secretary Karoline Leavitt later clarified that the fee is a one-time payment, applicable only to new visas, not renewals or current holders.
“This is NOT an annual fee," she said in a statement. “It’s a one-time fee that applies… only to new visas, not renewals, and not current visa holders."
The new rules and fee structure are scheduled to take effect at 12:01 am Eastern Time on Sunday, though legal challenges are anticipated. In 2024, the US approved roughly 400,000 H-1B visas, two-thirds of which were renewals. Demand for new visas continues to surpass supply.
This is a developing story...
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