Donald Trump may replace H-1B lottery with wage-based selection process

The H-1B visa programme, which is limited to just 85,000 new slots each year. (File Photo)

According to the DHS proposal, the implementation of a weighted selection process would favour the allocation of H-1B visas to higher-skilled and higher-paid foreign workers.

The new wage-based selection system, which was officially approved on August 8, 2025, is set to begin with FY 2027 selections in March 2026.

Four-tier wage system for H-1B visas

The US Department of Labour has a four-tier wage system for H-1B visas, where Level 1 is for entry-level workers, Level 2 for qualified professionals, Level 3 for experienced professionals, and Level 4 for highly specialised senior workers.

Under the wage-based selection process, Level 1 and Level 2 workers are unlikely to be considered for the H-1B visas, while the high-paying Level 3 and Level 4 workers would still be eligible.

How will this reduce immigration

This is yet another attempt by the Trump administration to discourage US companies from hiring low-paid, skilled foreign workers and limit them to only high-paid roles. This, the administration feels, would encourage US companies to hire more Americans and thus solve one of the biggest complaints of the conservatives that the H-1B recipients displace American workers.

H-1B visa programme

The H-1B visa programme, which is limited to just 85,000 new slots each year, has been used predominantly by the US tech industry to hire highly-skilled tech workers from countries like India.

H-1B visas are allocated based on a random selection process conducted by USCIS to choose which employer registrations can move forward with filing a petition. Employers with online registrations selected in the annual lottery can move forward with filing a petition.

According to Bloomberg, attorneys have warned that the proposal to tie H-1B selection to wages was unlawful because the Immigration and Nationality Act calls for issuing visas in the order in which petitions are received.