The U.S. Department of Homeland Security (DHS) has submitted a proposed rule to the Office of Management and Budget (OMB) that could overhaul how H-1B visas are awarded each year. If adopted, the plan would replace the current random lottery system with a weighted selection process, favoring applicants based on factors such as wage levels and educational qualifications.
The proposed rule is currently under preliminary review at the OMB. It will not go into effect unless it completes the full federal rulemaking process, which includes public input and can take several months to finalize.
What Would Change: The Weighted Selection Explained
Rather than awarding H-1B visas randomly, the proposed model introduces a ranking system:
- Applications would be sorted by wage levels, starting with the highest.
- Visas would be granted in order of descending wage tiers until the cap is reached.
- If too many applicants fall within one wage tier, a mini-lottery would be held for that group.
This change would give applicants with higher salaries or advanced degrees a better chance at selection, effectively transforming the H-1B program from a lottery into a merit- or market-based system.
Background: Why This Proposal Now?
Efforts to reform the H-1B visa system have been underway for years:
- In 2021, the Trump administration finalized a similar rule that prioritized wages. However, the Biden administration later paused and rescinded it.
- The 2025 proposal reflects a renewed interest in aligning the visa allocation process with market demand and labor protections.
What’s Next: The Rulemaking Timeline
Here’s a summary of the typical federal rulemaking process:
| Step | Timeline |
|---|---|
| OMB Review | Up to 90 days |
| Publication in Federal Register | After OMB approval |
| Public Comment Period | Usually 60 days |
| DHS Review of Comments | Varies |
| Final Rule Publication | 30–60 days after review |
Until the OMB review is completed and the rule is published, specific details remain confidential.
Implications for Employers and Foreign Workers
The proposed system could significantly affect both employers and international professionals:
- For Employers: Companies may need to offer higher wages to improve their applicants’ chances under the new system. Tech firms, consulting agencies, and multinationals may adapt more easily, while small businesses and startups could face increased competition.
- For Workers: Early-career professionals or those in lower-paying roles might find it more difficult to secure H-1B visas under the proposed model.
How to Prepare
If the rule is published, stakeholders will be able to submit public comments—a critical opportunity to influence how the final regulation is shaped.
Employers should begin reviewing their H-1B strategies now. Consider whether wage structures align with the potential new ranking criteria, and prepare for possible changes to talent acquisition plans.
If implemented, this proposed rule would mark a major shift in U.S. immigration policy—rewarding employers that invest more in high-skilled talent and reducing the role of chance in the H-1B selection process.
However, until the rule is finalized and publicly released, the existing H-1B lottery process for 2025 remains unchanged.
