The Trump administration has unveiled a significant proposal to reform the H-1B visa program, aiming to prioritize higher-skilled and better-compensated foreign workers. This move follows a recent proclamation introducing a $100,000 fee for new H-1B visa applications, effective from September 21, 2025. The proposed changes seek to replace the existing lottery-based selection process with a system that favors applicants offering higher wages and advanced skills, according to US media News.
Under the new system, if the number of applications exceeds the annual cap of 85,000 visas, employers offering higher salaries would have a better chance of having their petitions selected. The Department of Homeland Security (DHS) estimates that total wages paid to H-1B workers could increase from $502 million in fiscal year 2026 to $2 billion annually by 2029. However, approximately 5,200 small businesses may face significant economic challenges due to reduced access to H-1B labor.
The $100,000 fee applies only to new H-1B petitions and does not affect renewals or existing visa holders. The policy aims to curb what the administration describes as the misuse of the program and ensure that it serves its intended purpose of bringing in high-skilled workers to supplement the U.S. workforce.
Critics argue that the new fee and selection criteria could disproportionately impact small businesses and startups that rely on affordable access to skilled foreign labor. The policy has sparked concerns among employers in sectors such as technology, healthcare, and academia, who fear it may lead to a talent drain and hinder innovation.
The public will have 30 days to comment on the proposed changes, with the new rules potentially taking effect for the 2026 visa lottery. As the debate continues, stakeholders await further developments on the future of the H-1B visa program.
