Trump Admin Plans Stricter H-1B Visa Rules After Fee Hike, Proposes Ending Lottery System

Last Updated:September 23, 2025, 22:07 IST

Officials say the move is intended to protect American workers from wage suppression caused by the hiring of lower-paid foreign professionals

US President Donald Trump with Commerce Secretary Howard Lutnick. (AP file photo)

The Trump administration on Tuesday proposed changes to the H-1B visa programme that would favour higher-paid and more skilled foreign workers. The plan comes just days after the White House introduced a one-time $100,000 fee for new H-1B visa applications.

According to a notice in the Federal Register, the proposed changes aim to prioritise visa petitions from employers who offer higher wages. If the number of applications exceeds the annual cap of 85,000, those offering better pay will receive preference, Reuters reported.

Officials say the move is intended to protect American workers from wage suppression caused by the hiring of lower-paid foreign professionals. The plan is part of Trump’s broader effort to tighten immigration policies and reshape the US labour market.

The H-1B programme is commonly used by technology and outsourcing firms to recruit skilled foreign workers such as software engineers, data analysts, and scientists. Indian professionals account for the majority of H-1B visa recipients.

The administration’s latest proposal follows a chaotic weekend for the tech industry. Last week, US Commerce Secretary Howard Lutnick had announced that companies would be required to pay a $100,000 fee annually for each H-1B visa. That sparked confusion and panic among employers and visa holders.

In response to the backlash, White House Press Secretary Karoline Leavitt issued a clarification on Saturday. She confirmed the fee would be a one-time payment and would apply only to new visas—not to renewals or existing holders.

“This is NOT an annual fee," she said in a statement posted on social media. “It’s a one-time fee that applies… only to new visas, not renewals, and not current visa holders."

The new rules and fee structure are set to take effect at 12:01 am Eastern Time on Sunday. Legal challenges are expected.

In 2024, the US approved about 400,000 H-1B visas, two-thirds of which were renewals. Demand for new visas continues to exceed supply, with applications allocated through a lottery system.

(With inputs from agencies)

Click here to add News18 as your preferred news source on Google. Get breaking news, in-depth analysis, and expert perspectives on everything from geopolitics to diplomacy and global trends. Stay informed with the latest world news only on News18. Download the News18 App to stay updated!

News world Trump Admin Plans Stricter H-1B Visa Rules After Fee Hike, Proposes Ending Lottery System

Read More