H-1B Visa Approval Rate Drops to 20%: The Most Restrictive U.S. Work Visa

In an eye-opening report by the National Foundation for American Policy (NFAP), the H-1B visa has been declared the most restrictive category in the U.S. immigration system. According to the findings, only 20% of new H-1B registrations result in approved workers due to the annual cap, creating a significant barrier for skilled professionals looking to contribute to the American workforce.

A Disproportionate Approval Rate

The study reveals a stark contrast between H-1B visa approval rates and other visa categories. While 72% of tourist visas and over 90% of other work visas receive approval, highly educated professionals seeking H-1B status face an uphill battle.

Shockingly, a foreign couple attending Mardi Gras is three times more likely to secure a visa than a master’s-degree-holding electrical engineer. Likewise, a European teenager has a fourfold better chance of obtaining a U.S. visa to work at an amusement park than a graduate student in artificial intelligence seeking an H-1B visa.

Over 300,000 Qualified Professionals Denied Work Opportunities

For FY 2025, U.S. employers submitted at least 423,028 eligible H-1B registrations, yet only 85,000 foreign nationals were granted work authorization due to the annual cap. This means that over 300,000 skilled professionals—many of whom are critical to industries such as technology, healthcare, and engineering—were shut out of opportunities in the U.S. market.

The demand for H-1B visas has consistently exceeded supply since FY 2004, when Congress last raised the cap. Despite some exemptions for universities and research institutes, the rigid 85,000 annual limit severely restricts economic growth and innovation. Today, this quota represents just 0.05% of the U.S. labor force, making it the primary immigration challenge for tech firms and multinational corporations.

The Myth of Easy Access: H-1B Visas Come with Heavy Restrictions

Contrary to claims that the H-1B visa is a loophole for cheap labor, the category already comes with rigorous requirements. Employers must meet stringent conditions, including:

• Paying at least the prevailing wage for the occupation.
• Covering significant legal and government fees, which can range from $34,900 to $50,000 when sponsoring an employee for permanent residence.
• Notifying U.S. employees of wage details and ensuring compliance with labor laws.
• Facing severe penalties for violations, including three-year bans from hiring H-1B workers and hefty fines for underpayment or layoffs of American workers.

Are H-1B Workers Really Underpaid? The Numbers Say Otherwise

A common misconception is that foreign-born professionals under the H-1B program are exploited for low wages. However, USCIS statistics indicate otherwise:

• The average salary for an H-1B holder in computer-related occupations in 2023 was $132,000.
• The median salary was $122,000.

“These figures debunk the idea that H-1B workers are low-skilled or underpaid,” said Mark Regets, Senior Fellow at NFAP. “If that were true, employers would not pay such high salaries.”

The Unintended Consequences of H-1B Visa Caps

While policymakers argue that limiting H-1B visas protects American jobs, studies suggest the opposite. Research from Britta Glennon, an assistant professor at the Wharton School of Business, concludes that immigration restrictions lead companies to move jobs overseas instead of hiring locally. Firms unable to hire high-skilled foreign workers are increasingly expanding operations in China, India, and Canada, where talent is more accessible.

The Future of U.S. Competitiveness at Stake

The United States competes globally for talent, and the current H-1B visa restrictions put the country at a disadvantage. Countries like Canada, the UK, and Australia have more flexible policies for skilled immigration, making them more attractive for innovators and top talent. Without meaningful reforms, America risks losing its competitive edge in artificial intelligence, biotech, and other cutting-edge industries.

Also Read : Parinitha Sabhnani: The Visionary Driving AI and Robotics at Scotiabank