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Emigration and immigration

White House Approves Proposed Rule to Overhaul H-1B Visa Allocation

Strategic Insights

— 1 min read

The White House's Office of Information and Regulatory Affairs has approved a proposed rule that could revolutionize the allocation of H-1B visas for foreign skilled workers. The approval indicates that the rule may be published for public viewing shortly, which could replace the current random lottery system with a wage-based allocation model. This move is seen as a potential revival of a plan initially proposed during the Trump administration. The proposal would prioritize H-1B visas for foreign workers who are offered higher wages, as opposed to the current random selection process.

Key Takeaways:

  • The proposed rule aims to replace the current random lottery system for H-1B visa selection with a wage-based allocation model.
  • The new system would give priority to H-1B petitions based on the wages offered by employers, categorized into four wage tiers.
  • The wage-based selection method was aligned with the Trump administration's "Buy American, Hire American" policy, which aimed to favour highly skilled and better-paid foreign workers.
  • The system would ensure that H-1B visas are allocated to individuals in positions with higher compensation, based on wage levels defined by the US Department of Labor.
  • The proposed rule was initially finalized in the last days of the first Trump administration but was later withdrawn by the Biden administration in 2021 due to public opposition and federal court blocks.
  • Over 1,000 public comments were submitted in opposition to the rule, raising concerns about reduced access to H-1B visas for entry-level professionals.
  • President Donald Trump has consistently criticized the H-1B programme, arguing that it has been used by companies to replace American workers with lower-paid foreign labour.

Statistics:

  • 85,000: The annual cap on H-1B visas.
  • 4: The number of wage tiers that employers would be categorized into, with higher wage tiers offered priority in the selection process.
  • 1,000: The number of public comments submitted in opposition to the proposed rule in 2021.

Sources:

  • Bloomberg Law report
  • US Department of Homeland Security (DHS)
  • US Citizenship and Immigration Services (USCIS)
  • Trump administration's "Buy American, Hire American" policy

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