H-1B Visa Allocation Rule Change Gains White House Approval

H-1B Visa: The White House’s Office of Information and Regulatory Affairs has officially approved a proposed rule that could mark a turning point in how H-1B visas are awarded to specialty occupation workers. According to a Bloomberg Law report, the move signals that the rule may be published for public review shortly, setting the stage for one of the most significant reforms to the program in years.

While the U.S. Citizenship and Immigration Services (USCIS) has yet to release the full text of the new regulation, industry experts believe it will revive a controversial plan from the Trump era: replacing the current random lottery system with a wage-based selection process.

H-1B Visa: From Random Chance to Wage Priority

The H-1B visa program, a cornerstone for U.S. companies seeking highly skilled foreign talent—especially in the tech sector—currently operates under an annual cap of 85,000 visas. Each spring, employers submit applications, and a computer-generated lottery determines who can proceed.

Under the wage-priority model first floated in 2021, petitions would be ranked according to salaries offered, divided into four wage tiers. Higher-paying positions would be prioritized, reflecting the administration’s goal of attracting top-tier global talent while discouraging the use of the program for low-wage outsourcing.

This approach aligns with the “Buy American, Hire American” policy from the Trump administration, which sought to ensure H-1B visas went to highly skilled and well-compensated workers.

A Policy with a Contentious History

The wage-based H-1B visa allocation rule change faced fierce opposition when it was first proposed. Over 1,000 public comments warned that such a system could disproportionately disadvantage entry-level workers, recent graduates, and smaller companies unable to compete with the salaries offered by tech giants.

In addition, federal courts previously blocked related efforts to raise minimum wages for H-1B holders and to tighten job qualification definitions, ruling that such changes were improperly implemented or overly restrictive.

When President Biden took office, his administration withdrew the wage-priority rule in 2021, citing concerns about limiting opportunities for qualified foreign professionals.

H-1B Visa: Why the Change is Back on the Table

The new approval suggests that the U.S. government may be revisiting the idea with modifications—potentially to withstand legal scrutiny and balance the interests of employers, workers, and economic competitiveness.

Former President Donald Trump had repeatedly criticized the program, claiming that some employers exploited it to replace American workers with cheaper foreign labor, especially in the IT industry. Advocates of reform argue that a wage-based system could reduce abuse by rewarding companies that truly need top-tier expertise and are willing to pay for it.

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