By Kavita Mistry 
The Trump administration has unveiled plans to revamp the H-1B visa program, prioritizing higher-skilled and better-compensated foreign workers. A Federal Register notice released on Tuesday outlines a new lottery system that favors high-paying jobs, aiming to curb alleged misuse of the visa program and encourage companies to hire more American workers.
Steep Fee Increase
The proposed regulation follows President Donald Trump’s executive order on September 19, which imposed a $100,000 fee for new H-1B applications, a dramatic jump from the previous $215–$5,000 range. The administration argues that this will ensure only top-tier talent is selected, while critics warn it could severely affect smaller businesses and startups relying on H-1B workers.
Economic and Industry Impact
According to the US Department of Homeland Security (DHS), small businesses currently receiving H-1B visas—estimated at 5,200—could face significant economic disruption due to loss of skilled labor. Tech firms, IT outsourcing companies, and startups hiring from countries like India and China may find it harder to attract talent, potentially driving workers to other countries such as Canada and the UK.
Wage Implications
The new system is expected to raise total wages for H-1B workers to $502 million in fiscal 2026, with further increases projected: $1 billion in FY2027, $1.5 billion in FY2028, and $2 billion annually from FY2029–2035. By favoring higher-paying roles, the administration hopes to reduce the hiring of lower-paid foreign workers and protect domestic employment.
Public Feedback and Next Steps
US Citizenship and Immigration Services (USCIS) will accept public comments for 30 days starting Wednesday. If implemented, these changes will mark a significant shift in US skilled worker immigration policy, potentially reshaping how tech and other industries source talent globally.
Broader Context
The overhaul forms part of a broader immigration crackdown by the Trump administration, including stricter enforcement and changes to employment-based visa programs. Supporters see it as a step to protect American jobs, while opponents warn it could stifle innovation and reduce the competitiveness of US industries reliant on foreign talent.