Trump's New H-1B Visa System Prioritizes High Salaries

The Trump administration is set to implement a significant change to the H-1B work visa program in the United States, replacing the traditional lottery system with a new approach that prioritizes applicants based on their salary. This shift is expected to create barriers for entry-level professionals, a group that includes many applicants from India.

The new policy will take effect on February 27, 2026, impacting the H-1B registration cycle for the fiscal year 2027. Each year, approximately 85,000 H-1B visas are granted.

According to the US Citizenship and Immigration Services, the prior lottery model was often exploited by companies looking to hire foreign labor at lower wage rates. In contrast, the adjusted system will favor applications that demonstrate higher salaries and specialized skills.

A spokesperson for the government emphasized that this change is designed to safeguard American jobs and attract top-tier global talent, rather than undermining local salary levels.

This announcement follows earlier initiatives by the Trump administration, which included a presidential order that mandates employers to pay an additional fee of $100,000 for each H-1B visa. There are ongoing legal disputes concerning this fee. Additionally, a new visa pathway dubbed the “gold card” has been initiated for affluent foreign nationals.

The H-1B visa is extensively utilized by tech companies, hospitals, and educational institutions in the US, with Indian professionals constituting a significant portion of recipients, particularly in tech and healthcare. The revised compensation criteria may hinder new Indian graduates from pursuing careers in the US, making entry into the program much more challenging.

Prominent firms like Amazon, Tata Consultancy Services, Microsoft, Apple, and Google have been leading recipients of H-1B visas, with California hosting the majority of visa holders.

While supporters claim the program drives innovation and fills essential skill gaps, critics argue that it often leads to the employment of workers in lower-level jobs at reduced wages, diverging from its intended purpose.

Currently, the H-1B program maintains a cap of 65,000 visas per year, in addition to 20,000 reserved for individuals holding a US master’s degree or higher.