After $100,000 H-1B visa fee, Donald Trump administration plans to scrap lottery process: How will it work?

By Admin

24 Sep, 2025

Days after imposing a steep $100,000 annual fee for new H-1B visa applicants, the Donald Trump administration has unveiled another sweeping proposal to overhaul the visa system. The latest move aims to fundamentally reshape how H-1B visas widely used by Indian IT professionals are allocated, with a new emphasis on wages rather than chance.

The Push for Reform

The Trump administration has long argued that the H-1B program disadvantages American workers by allowing companies to hire cheaper foreign labor. To align with its “America First” agenda, the U.S. Department of Homeland Security (DHS) announced on Tuesday that it intends to amend regulations governing the H-1B selection process. The changes would impact how the U.S. Citizenship and Immigration Services (USCIS) selects registrations and petitions when the annual cap of 85,000 visas is oversubscribed.

What Will Change?

Currently, the H-1B visa selection is based on a lottery system that gives all applicants an equal chance, regardless of their salary or skill level. Under the new rule, this lottery system would remain in place but with a weighted preference:

• Wage-Based Selection: Applications from employers offering higher wages would have better odds of selection.
  
  

• Four-Tier Wage Levels: Workers in the highest wage tier would be entered into the pool four times, while those in the lowest tier would only be entered once.
  
  

• Protection for U.S. Workers: DHS said this system would safeguard American employees from unfair wage competition while still allowing U.S. businesses to hire skilled talent across different pay levels.
  
  

The $100,000 Annual Fee

Last week, the administration imposed a $100,000 annual fee on new H-1B visa applicants, sending shockwaves across the tech industry. Companies like Amazon and Meta reportedly advised employees to avoid international travel amid uncertainty. Later clarifications confirmed that the fee applies only to new applicants and not to existing H-1B holders.

Industry Reaction

The dual policy moves the six-figure fee and wage-based selection have raised concerns among technology companies, many of which rely heavily on Indian professionals under the H-1B program. Critics argue that the fee is prohibitively expensive and could restrict talent mobility, while the weighted lottery could sideline younger or entry-level professionals.

What This Means Going Forward

If implemented, the new system would significantly alter the dynamics of the H-1B program:

• Higher-paid workers would have far better odds of securing visas.
  
  

• Companies might be forced to raise salaries to remain competitive in securing foreign talent.
  
  

• Lower-wage applicants could see drastically reduced chances, affecting fresh graduates and junior employees.
  
  

For Indian IT workers, who account for a large share of H-1B visa holders, these changes could create new challenges while also potentially pushing wages upward for those who qualify.

The Trump administration’s latest push underscores its determination to reduce immigration pathways while reshaping them in ways that prioritize higher wages and American worker protection. Whether these proposals survive legal and political challenges remains to be seen, but the future of the H-1B system is clearly entering a new and uncertain phase.