White House Approves Plan to Overhaul H-1B Visa Program

Strategic Insights -

The White House's Office of Information and Regulatory Affairs has given its approval to a proposed change to the way the United States Citizenship and Immigration Services (USCIS) handles H-1B visas. The H-1B visa program, which allows employers to bring in specialty workers from overseas, is heavily used by the tech sector and has a cap of 85,000 visas granted each year, with the current distribution decided on a random lottery-style basis. According to Bloomberg Law, the OIRA approved the proposed rule change on August 8, which would replace the lottery system with a new "weighted selection process." This change is expected to incentivize businesses to offer higher wages to increase their chances of securing a visa.

Key Takeaways:

  • The proposed rule change, approved by the OIRA on August 8, would replace the current lottery system with a new "weighted selection process" for H-1B visas.
  • The weighted selection process would evaluate foreign work visa applicants based on their wages, which would be subdivided into four tiers for assessment.
  • Critics have warned that this change could disadvantage less experienced professionals or recent graduates, who may not be able to compete for higher-paying jobs with more experienced workers.
  • The Institute for Progress estimates that the economic value of the H-1B program could be increased by as much as 88 percent if applicants were evaluated more methodically based on their seniority or salary.
  • A similar version of the weighted selection model was proposed in January 2021 during the Trump administration, but was rejected and withdrawn by the Biden administration.
  • The proposed rule change would make the H-1B process more competitive and may compel employers to alter their recruitment strategies.

Statistics:

  • The H-1B visa program has a cap of 85,000 visas granted each year (65,000 plus an additional 20,000 for applicants with an advanced degree from a US university).
  • The current lottery system has been considered unsatisfactory, leading to the proposed rule change.
  • The Institute for Progress estimates that the economic value of the H-1B program could be increased by 88 percent if applicants were evaluated based on their seniority or salary.
  • The weighted selection model proposed in January 2021 would have evaluated foreign work visa applicants based on their wages, subdivided into four tiers for assessment.

Sources:

  • Bloomberg Law
  • Trump administration's proposed rule change (January 2021)
  • Institute for Progress report on H-1B program (year not specified)