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In a major change to the H-1B visa rules, the Trump administration is getting rid of the random lottery that determined who would get the visa. Instead, the new process will favor people with higher skills and better salaries. This update is part of a growing effort by the Trump administration to tighten immigration policies to support the Republican 'America First' strategy. Indian workers, who make up a large group of H-1B visa holders in the US, will likely be impacted by this change starting February 27, 2026. This change follows a federal judge's decision that upheld President Trump’s requirement for a fee of $100,000 to process H-1B visa applications, which was noted to potentially "cause serious issues for American businesses and colleges."
Currently, the US lets in 85,000 H-1B visas each year. This includes 65,000 visas available to everyone and 20,000 set aside for individuals with advanced degrees from US schools. When the number of applications goes over this limit, the US Citizenship and Immigration Services (USCIS) uses a lottery system to decide who receives a work visa. This system treats all applicants the same, no matter their experience or salary. The new system will focus on applicants who have more experience and are being offered higher pay. The pay ranges are categorized from Level 1 (starting level) to Level 4 (very experienced) according to guidelines from the US Department of Labor. In practice, the likelihood of being chosen will depend on the applicant's salary and skills. However, the USCIS noted that US employers can still try to hire H-1B workers at all pay levels.
"The new rule puts in place a selection system that gives priority to higher-skilled and higher-paid individuals while still allowing employers the chance to hire H-1B workers at all levels of pay," the statement explained. The USCIS indicated that anyone wanting to file H-1B petitions, including those eligible for advanced degree exemptions, must first register online and pay the registration fee of $100,000 for each person they are requesting to sponsor. After registering, the employer needs to fill out an electronic form that asks for basic details about the company and each individual they are sponsoring for a visa. Employers must also provide valid passport details or relevant travel documents for each person they plan to bring to the United States.
The first registration period lasts for at least 14 calendar days every fiscal year. After that, USCIS conducts the H-1B selection process to choose distinct beneficiaries from the properly submitted electronic registrations. If a distinct beneficiary is chosen, each employer that registered for that beneficiary will get a notification of selection and may submit an H-1B cap-subject petition for them.
The selections happen only after the registration period concludes, and employers can file an H-1B cap-subject petition only if they have received a selection notice for the beneficiary in their petition. Senior professionals and those in specialized areas like artificial intelligence, cybersecurity, and advanced engineering, along with employees at companies that can provide higher wages, are likely to benefit from this change.
The increase in H-1B fees is part of a broader immigration effort led by Trump, who has initiated a significant crackdown on migrants after returning to the presidency — even though it hadn't previously affected the visa system that Silicon Valley heavily depends on. Trump claimed that the H-1B visa system was misused to replace American workers with people who are willing to work for less pay. Supporters of the H-1B program argue that it is crucial for hiring healthcare professionals and educators. They believe it fosters innovation and economic development in the U.S. and helps employers fill positions in specialized fields.
On the other hand, critics state that these visas often go to junior positions rather than advanced roles that demand special skills. While the program is meant to stop wage suppression and protect U.S. workers, critics argue that businesses can pay lower wages by labeling jobs as low-skilled, even when the hired workers are more qualified.
Indian professionals make up more than 70 percent of all H-1B visa holders annually, especially in technology, engineering, and service industries. Among these, there is a significant number of beneficiaries who are entry-level workers. New graduates and students starting their careers often accept lower wages, especially in non-STEM fields, competitive sectors, and startups where budgets may be limited. In a wage-based system, such candidates might find themselves at the end of the selection list or even left out entirely, no matter their qualifications or potential.
