Even as the world economy grapples with the impact of Donald Trump’s tariff policy, the White House has announced a massive overhaul of the visa allocation system that may spell trouble for Indian professionals.
As per a report released by Bloomberg Law News, the White House recently approved a rule that will base H-1B applications subject to the mandatory limit on salary instead of a random lottery system. The report adds that, so far, the new regulation—which was cleared on August 8—has not been made public.
Currently, the H-1B program has an annual cap of 85,000 visas. Every spring, a draw of lots is held to select applicants for the visa, which is popular among IT professionals.
This is the relaunch of the 2021 regulation, which was withdrawn by the Joe Biden administration after much outcry. Back then, the Department of Homeland Security had said that H-1B visas should be allocated based on the earnings of registered applicants instead of the lottery system. While many believe the lottery system helps give all applicants a fair chance, the new rule seeks to attract more high-skilled individuals.
Several court rulings have also prevented any overhaul of the H-1B visa program based on a wage floor.
The new system, which is likely to be made public soon, will fundamentally change the way H-1B visas are allocated. This would mean more opportunities for STEM professionals compared to those from other fields of study. However, even within STEM, those in the lower wage bracket may not get a chance to work in the US.
This also means that international students and entry-level executives could potentially lose sponsorship, as companies and other institutions may not be able to meet the high-wage criteria.
What the new H-1B visa system means for Indians
As per available data, Indians dominate the H-1B visa application race. Indians are among the top community to be allotted H-1B visas. As per 2023 data, a Business Standard report said that between October 2022 and September 2023, Indians accounted for 70 percent of successful candidates. The Chinese are a distant second, with a success rate of 12 percent.
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