Donald Trump Administration Mulling Over To End H-1B Lottery System

The United States is considering changes to the H-1B visa programme, following President Donald Trump's recent proclamation aimed at limiting it. The Department of Homeland Security has proposed a new system that would prioritise higher-skilled and higher-paid workers. This change would replace the current lottery system with a weighted selection process based on wage levels.

Under the proposed system, applicants in the highest wage tier, earning $162,528 annually, would have four entries in the selection pool. In contrast, those in the lowest tier would only have one entry. This shift could significantly impact how global talent is attracted to the US economy.

Impact on Global Talent and Companies

Nicole Gunara, Principal Immigration Attorney at Manifest Law, noted that this proposal could alter the flow of international talent into the US. "In effect, an engineer offered $150,000 at Meta might now have multiple lottery entries, while a junior developer at a startup earning $70,000 might only get one," she explained. This change favours established companies that can offer top salaries over emerging firms relying on younger talent.

The rule may lead to a more senior and higher-paid tech workforce in the US. Gunara added that if implemented, "the H-1B lottery will no longer be purely random." Higher-paid roles will have better chances of selection compared to entry-level positions.

Financial Implications for Indian IT Firms

Indian IT giants like TCS, Infosys, and Wipro heavily depend on H-1B visas. The new fee associated with each application could cost these companies billions. As a result, they might reduce hiring or move jobs back to India.

According to data from the US Citizenship and Immigration Services, Indians account for 71% of all approved H-1B applications. This highlights their significant presence in the programme.

Trump's Proclamation and Its Rationale

Last week, Trump signed a proclamation introducing a $100,000 fee for each new H-1B application. The visa allows US companies to hire skilled foreign workers through a lottery system. White House spokeswoman Taylor Rogers stated that this action aims to prioritise American workers by discouraging system abuse and ensuring high-skilled workers are brought into the country.

President Trump emphasised that this move incentivises hiring American workers. Will Scharf from the White House described the H-1B visa programme as one of the "most abused visa" systems in the US.

This development coincides with visits by External Affairs Minister S Jaishankar and Commerce and Industry Minister Piyush Goyal to meet Trump administration officials in New York.

The proposed changes to the H-1B visa programme could reshape how international talent is integrated into the US workforce. By favouring higher-paid roles, it may redefine competition for skills globally while impacting companies reliant on foreign talent.