The landscape for skilled foreign workers in the United States, a pathway heavily used by Indian professionals, is poised for a significant and costly overhaul. The US Department of Labour (DOL) has sent a proposed rule to the Office of Management and Budget (OMB) for review, a move that aims to recalibrate the prevailing wage levels for the H-1B visa and employment-based green card programs.
What the Proposed Rule Means for Wages
This regulatory action, if finalized, would effectively push up the minimum salaries that US employers must pay to H-1B visa holders and foreign nationals they sponsor for permanent residency (green cards). The proposal seeks to alter the existing four-tier prevailing wage system, which categorizes jobs from entry-level (Level I) to highly experienced (Level IV).
A similar wage increase was attempted during the first Trump administration in 2021, but it was challenged in US courts and later set aside by the Biden administration. Now, the issue is back on the table. Any upward revision would directly increase labor costs for American companies across sectors, especially in technology and healthcare, which rely heavily on this talent pool.
A Triple Whammy: Fees and a Weighted Lottery
The proposed wage recalibration is not the only change on the horizon. It comes alongside two other major developments that signal a fundamental shift in the H-1B program.
First, a new $100,000 fee on new H-1B petitions filed after September 21, 2025, has been proposed. Second, and perhaps more transformative, is a plan from the Department of Homeland Security (DHS) to implement a "weighted lottery" system for the H-1B visa selection process.
Under this proposed lottery system, an applicant's chance of selection would be tied directly to their offered wage level. A candidate with a Level IV (highest) wage offer would get four entries into the lottery, Level III would get three, Level II two, and an entry-level (Level I) applicant would get only one entry. This dramatically skews the odds in favor of the highest-paid candidates.
An analysis by the National Foundation for American Policy indicates this change would more than double the selection probability for top-tier candidates while nearly halving the chances for entry-level applicants, a group that includes many recent international graduates from US universities.
Timeline and Broader Implications
The rulemaking process has several steps remaining. Once the OMB completes its review, the proposal will be published in the Federal Register, opening a typical 60-day public comment period. Therefore, it will be several months before any rule is finalized.
Taken together, these proposals—higher wages, a massive new fee, and a wage-weighted lottery—point to a sharp increase in the cost of hiring foreign professionals. For employers, the H-1B program is steadily transforming from a skills-based visa into a premium hiring channel reserved for highly experienced, highly paid specialists.
This shift raises substantial concerns for US businesses, particularly in STEM fields. Many experts anticipate that affected American employers are likely to challenge these changes through court litigation, arguing they disrupt business operations and the ability to fill critical skill gaps. For thousands of Indian professionals and students aspiring to work in the US, the path forward is set to become more expensive and competitive.
