H-1B Visa FAQs: All About Team Trump's Wage Policy, How It May Affect Indians

In a significant H-1B visa policy overhaul, the Trump administration in the United States is replacing the random lottery system that selected beneficiaries with a process that gives greater weight to those with higher skills and who are better paid. The new guidance is the latest amid an intensifying crackdown on immigration by the Trump administration to advance Republicans' 'America First' agenda. 

Indian professionals, who are among the largest cohort of H1B visa holders in the US, are likely to be affected by the move that will come into effect on February 27, 2026. The move comes as a US federal judge upheld President Donald Trump's $100,000 fee to process H-1B visa applications, acknowledging it could "inflict significant harm on American businesses and institutions of higher education."

Question: What Was The Lottery System?

Answer: Under the current system, the United States awards 85,000 H-1B visas per year -- including  65,000 under the general cap and 20,000 reserved for those with US advanced degrees. 

When applications exceeded the quota limit, the US Citizenship and Immigration Services (USCIS) used a random lottery system to select the applicants who received the work visa permits. The system treats all eligible entries equally, regardless of the applicant's work experience or the salary offered.

ALSO READ: No More H-1B Lottery, US Notifies New Process For Awarding Work Visas

Question: What's The New System?

Answer: The new wage-based system prioritises applicants who have more years of experience and are being offered higher salaries. These wage levels range from Level 1 (entry-level) to Level 4 (highly experienced), based on US Department of Labour guidelines.

In practice, the applicant's chances of selection should depend on their wage and skill levels. However, the USCIS has specified that US employers will get an opportunity to secure H-1B workers at all wage levels.

" The rule implements a weighted selection process that will favour allocating H-1B visas to higher-skilled and higher-paid aliens while maintaining the opportunity for employers to secure H-1B workers at all wage levels," it said. 

ALSO READ: Trump Administration Orders Enhanced Vetting For H-1B Visa Applicants

Question: What's The Application Process?

Photo Credit: AFP

Answer: USCIS said all prospective petitioners seeking to file H-1B cap-subject petitions, including for beneficiaries eligible for the advanced degree exemption, must first electronically register and pay the associated H-1B registration fee of $100,000 for each prospective beneficiary.

Following this, the petitioning employer must complete an electronic registration that requires basic information about the company and each unique beneficiary for whom they are requesting a visa. Employers must submit valid passport information or valid travel document information for each beneficiary that they intend to use to enter the United States.

The initial registration period is for a minimum of 14 calendar days each fiscal year. USCIS then runs the H-1B selection process to select unique beneficiaries based on properly submitted electronic registrations. If a unique beneficiary is selected, then each employer who registered for that beneficiary would receive a registration selection notice and may file an H-1B cap-subject petition on their behalf. 

Selections take place after the initial registration period closes, and employers can only file an H-1B cap-subject petition if they receive a selection notice for the beneficiary of the petition. 

ALSO READ: "H-1B System Spammed With Fraud": White House Defends Visa Fee Hike

Question: Who Benefits From The Move?

Answer: Senior professionals, those in specialised fields, such as artificial intelligence, cybersecurity, and advanced engineering, and workers at firms that can offer higher salaries are likely to benefit from the move. 

Question: What's The Motive Behind The Move?

Answer: The H-1B fee hike is part of a larger immigration crackdown by Trump, who has unleashed a massive push against migrants since returning to the White House -- though until now it had not targeted the visa on which Silicon Valley relies heavily. 

Trump argued that the H-1B visa system was being abused to replace American workers with people willing to work for less money. 

Supporters of the H-1B programme say it is an important pathway to hiring healthcare workers and educators. They say it drives innovation and economic growth in the U.S. and allows employers to fill jobs in specialised fields.

However, critics argue that the visas often go to entry-level positions rather than senior roles requiring specialised skills. While the programme is intended to prevent wage suppression or the displacement of US workers, critics say companies can pay lower wages by classifying jobs at the lowest skill levels, even when the workers hired have more experience.

Question: How Will The Move Affect Indian Professionals?

Answer: Indian professionals account for over 70 per cent of all H-1B visa recipients each year, mainly in the technology, engineering, and services sectors. Among them, there is a large section of beneficiaries who are entry-level professionals.

Students and new graduates, who are just starting their careers, often accept lower salaries, especially in non-STEM fields and competitive sectors and startups, where budgets may be tight. Under the wage-based system, such candidates might get pushed to the bottom of the selection queue or even excluded, regardless of their qualifications or potential.