The Department of Homeland Security (DHS) is looking to revamp the H-1B visa system to better accommodate highly skilled and well-compensated foreign workers. This proposal was submitted on Tuesday.
Under the new plan, the existing lottery system will be replaced with a “numerical cap.” This approach allows employers to focus on hiring higher-skilled workers who earn greater wages. Workers will be categorized into four levels, with Level IV workers being able to apply four times while Level I workers can apply just once.
The DHS believes these changes would prompt employers to offer H-1B workers better wages or more skilled positions, as the current setup tends to favor low-skilled, lower-wage employees.
The official docket will be published in the federal register on Wednesday, initiating a 30-day period for public comments.
Recently, President Trump enacted a new $100,000 fee on H-1B visas, effective Sunday. This move has already caused some unease within the tech industry. White House spokesperson Karoline Leavitt clarified that this fee is a one-time charge, stating that non-U.S. H-1B visa holders do not need to pay to re-enter the country.
The H-1B visa program allows U.S. employers to employ foreign workers in certain specialty occupations. Established in 1990, it is predominantly utilized by tech companies, hiring workers who are not legal permanent residents of the U.S.
These visas are initially valid for three years, with the possibility of extending them to a total of six years. Since 2005, the approval limit has been set at 65,000 per year, with an additional 20,000 exemptions for advanced degree holders from U.S. institutions.
Some organizations, such as universities and government research institutions, are exempt from this cap. If applications exceed the limit, the USCIS will revert to the lottery system previously mentioned.
Last year, around 400,000 H-1B applications were approved, but only about 65% were updated, according to the Pew Research Center. This was a drop from 2022 when over 440,000 applications were approved, marking a peak.
Pew also found that 73% of approved H-1B workers came from India, while 12% hailed from China.
“We need skilled workers. We really do,” Trump said on Friday, emphasizing the importance of this shift.
Commerce Secretary Howard Luttonick noted that these changes would also motivate employers to hire American workers, claiming that “all large companies are involved” in this transition.
Last December, both Elon Musk and Vivek Ramaswamy faced backlash from some in Trump’s base for their support of the H-1B program. This has become a significant point for Republicans as they outline their immigration positions.
