Trump administration has proposed new H-1B visa process favoring higher skilled, better paid workers

The Trump administration on Tuesday unveiled a proposal to overhaul the H-1B visa selection system, aiming to favor higher-skilled and better-paid foreign workers, according to a notice published in the Federal Register. The move follows a White House proclamation last Friday that introduced a $100,000 fee for H-1B visas.

Under the proposal, if annual visa applications exceed the statutory cap of 85,000, priority would be given to petitions from employers offering higher wages. The administration said the change is intended to protect American workers from unfair wage competition.

The plan marks an escalation of the administration’s broader immigration crackdown, which since Trump took office in January has included mass deportation efforts and attempts to restrict citizenship for children born in the U.S. to undocumented immigrants. The H-1B program, widely used by technology and outsourcing firms to hire skilled foreign workers, has become a new focal point.

The White House’s Friday announcement of a $100,000 annual fee sparked confusion, prompting some large tech companies to warn employees holding H-1B visas to remain in the United States or return quickly. Officials later clarified the fee would apply only to new visa applications.

The regulation outlined Tuesday would replace the current lottery system with a wage-tiered structure, giving higher-paying positions greater odds of selection when demand surpasses supply. Finalizing the rule could take months or years, but the notice suggested it may be in place for the 2026 lottery ahead of March registrations.

Trump previously attempted to remake the H-1B process during his 2017–2021 presidency but was blocked by federal courts and ran out of time before leaving office. A similar rule intended to shift the lottery toward higher-paid applicants was delayed by President Joe Biden before it took effect in March 2021, struck down by a federal judge in September, and formally withdrawn by the Biden administration that December.

According to the Department of Homeland Security, total wages paid to H-1B workers would rise by $502 million in fiscal year 2026, $1 billion in 2027, $1.5 billion in 2028, and $2 billion annually from 2029 through 2035. DHS also estimated that about 5,200 small businesses currently relying on H-1B visas would face significant economic impacts from reduced access to foreign labor.