Trump's Latest H-1B Visa Regulation Posed Issue for Indians; Wage-Based Policy Potentially Endangers Entry-Level Positions - Clarified
The Trump Administration's Wage-Based H-1B Visa System Nears Implementation
The Trump administration has approved a significant overhaul of the H-1B visa selection process, replacing the current random lottery system with a wage-based selection model. This change, expected to be published soon in the Federal Register, aims to prioritize applicants with higher offered salaries, attracting and retaining highly skilled talent [1][3][4].
The proposed rule was signed off by the White House’s Office of Information and Regulatory Affairs (OIRA) on August 8, 2025, and is expected to be finalized and implemented by mid-August 2025 [2][3]. The overhaul is slated to take effect for the Fiscal Year 2027 H-1B cap season, with employer registration likely opening in March 2026 [2].
This change could have a substantial impact on international students and employers.
Impact on International Students
Fresh graduates and entry-level workers may face reduced chances due to the wage-based system favoring higher salaries, often excluding lower-paying entry jobs common for recent graduates [1][2][3]. Students currently on Optional Practical Training (OPT) will see a fundamental change in the selection process starting in 2026, requiring strategic planning considering wage-based priorities [2].
Impact on Employers
Smaller employers or startups offering lower wages may struggle to compete for H-1B talent due to preference for high-wage offers [1][3]. Larger companies or those offering higher salaries may find it easier to sponsor H-1B visas for their employees [1][3]. Employers in tech and specialty occupations will need to consider wage levels carefully when filing H-1B petitions to improve odds [1][2].
Critics warn that this change could disadvantage fresh graduates, entry-level skilled workers, and smaller employers, while supporters emphasize that it rewards merit and truly high-skilled talent by linking visa allocation to salary [1][3][4].
This new rule marks a significant change in the H-1B visa policy, potentially impacting the number and types of foreign workers who can enter the US. The implementation of this new rule was first pursued under the Trump administration as part of the "Buy American, Hire American" initiative. Federal courts have blocked earlier attempts to narrow eligible occupations and raise wage requirements for H-1B visas.
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