Trump Proposes H-1B Visa Overhaul Favouring Higher Paid Workers
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The United States is set for a major shake-up of its H-1B visa programme, with the Trump administration proposing a new system that prioritises higher-paid, higher-skilled workers. The move comes just days after the visa application fee was raised to $100,000, sparking alarm among employers and international applicants.
According to a notice published in the Federal Register on 24 September, the administration plans to replace the current lottery system with a “weighted selection process”. Applicants would be grouped into four wage bands, with higher earners given significantly better odds of selection. Workers in the top wage category would be entered into the pool four times, compared to a single entry for those in the lowest band.
The Department of Homeland Security (DHS) argued the new process would encourage companies to offer higher wages and reduce reliance on the H-1B visa for lower-paid roles. However, critics warn it could limit opportunities for early-career professionals and constrain growth for US firms already facing labour shortages.
“This will make it harder for companies to bring in younger talent and build international expertise,” said Ben Waxman, CEO of Intead. He added that restricting access could push the US tech sector towards offshoring – “not the outcome anyone in the US wants”.
The proposals follow Trump’s claim that fee increases would stop firms “abusing” the system by hiring foreign workers more cheaply than Americans. Previously, visa applications cost employers between $2,000 and $5,000.
Industry leaders, including the US Chamber of Commerce, have already voiced concern. Early reports suggest member companies are considering legal action over the $100,000 fee hike, with DHS itself acknowledging that over 5,000 small businesses employing H-1B workers may face severe disruption.
The H-1B visa, which allows US employers to hire foreign specialists in fields such as healthcare, engineering and computer science, is particularly popular with technology firms. India remains the largest source of H-1B workers, accounting for nearly three-quarters of new approvals in 2023.
The proposal is now open to a 30-day public consultation before being considered for final implementation.
Source: THE PIE NEWS
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