Concept of H1b Visa for foreign workers showing wooden letters with US or United states flag as background
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The H-1B visa program began in 1990 and was designed for highly-educated, high-skilled workers to enter, work and live in the United States. Today, it is being remade in ways that could alter who gets to work in the United States and on what terms.
On Friday, confusion over new visa rules began after President Trump’s Oval-Office proclamation left existing visa holders questioning whether they could re-enter the country before announced fees and requirements took effect.
At the center of the confusion: a $100,000 fee that the administration added to new H-1B visa applications, and whether it applied only to new petitions or renewals, too.
That detail was ultimately cleared up by the White House press secretary on X, many current H-1B holders weren’t sure how the fee increase would affect them. And if they were leaving the country, would they be allowed to return without any updated documents.
Employment Authorization card on USA Flag surface. Close up view. Wide photo
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Every year, approximately 85,000 new applicants are awarded H-1B specialty occupation visas: 65,000 under the regular cap and an additional 20,000 for applicants with advanced U.S. degrees. In 2024, over 470,000 H-1B applications were processed before being entered into a lottery. The lottery is used to offer equal odds of approval for a new graduate entering the workforce as it would for a seasoned engineer commanding a six-figure salary.
Looking ahead, that mechanism may be replaced with a wage-based merit system. In a filing on July 17, the Department of Homeland Security submitted for a proposed rule titled “Weighted Selection Process for Registrants and Petitioners Seeking To File Cap-Subject H-1B Petitions.” The proposal introduced a "weighted selection process," which is far different than the lottery system used today. The petition is currently on its way through the system, having already been submitted to the Office of Information and Regulatory Affairs.
Hand touching Letter (Envelope) from USCIS on flag of USA background. Close up view.
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Under the proposed framework, H-1B applications will be prioritized by salary, with the highest-paying jobs moving to the front of the line. This change is designed to grant access to those holding the most valuable and in-demand roles, ensuring that visas flow toward highly compensated workers in industries such as advanced technology, finance, and healthcare.
American companies seeking to hire a foreigner on an H-1B visa must first attest that they are not been able to find American workers with similar skills, and that the foreign applicant will earn a salary similar to what an American worker would earn.
But this will affect entry-level workers and employees from smaller employers in sectors like education, research, and early-stage startups. Those areas have traditionally paid modest salaries and will struggle to compete for candidates.
India And China Account For Most H-1B US Visas
In fiscal year 2024, nearly 400,000 H-1B petitions were approved, including new cases and a quarter-million visa renewals or extensions. The majority of beneficiaries came from India, which accounted for almost 75% of approvals, followed by China with around 12%. A handful of other countries, including the Philippines, Canada and South Korea, represent just over one percent each.
On the employer side, big technology companies such as Amazon, Microsoft, and Apple, as well as services firms like Infosys, TCS and Cognizant are some of the employers that rely on these employees.
Employers will now face new costs. A $100,000 petition fee makes sense only for the most valuable roles, and the wage-based ranking all but ensures that companies willing to pay at the top of the market will crowd out those that cannot.
Historically, U.S. immigration policy has been rooted in principles of opportunity, diversity and merit. The introduction of a more formal pay-to-play system challenges these ideals, possibly undermining public trust in the fairness and integrity of the immigration process.
It also raises questions about the message this sends to the global community. Is the U.S. prioritizing financial gain over its commitment to being a beacon of hope and opportunity for the most talented?
Not yet. But with scale, perhaps.