The H-1B visa program is on the verge of sweeping changes. The Department of Homeland Security (DHS) has rolled out a detailed proposal to tighten eligibility, crack down on abuse, and reshape how visas are awarded. If implemented, the reform will hit industries that rely heavily on foreign talent and shift the balance of hiring in U.S. labor markets.
Why Reform the H-1B Visa Program?
The H-1B visa program allows U.S. companies to bring in high-skilled foreign professionals for specialty occupations. It has long served as a bridge to permits and permanent residence for many. Under current law, the program follows a numerical cap: 65,000 regular visas plus an extra 20,000 for those holding a U.S. master’s degree.
Yet critics argue the program is misused. Some employers allegedly undercut U.S. workers by paying low wages or rehiring temporarily to skirt labor protections. The new DHS proposal claims large-scale abuse “undermines both our economic and national security.”
The proposed changes aim to close loopholes, tighten oversight, and reorient the H-1B system toward higher pay, higher skills, and stricter enforcement.
Key Proposed Changes to the H-1B Visa Program
Below is a breakdown of the major reform elements in the DHS proposal:
| Reform Area | Proposed Change | Expected Impact |
|---|---|---|
| Weighted Selection | Replace the lottery system with a wage-based or merit weighting that favors higher pay levels. | Applicants in lower wage bands may see greatly reduced chances. |
| Cap-Exempt Redefined | Narrow the criteria for institutions exempted from the H-1B cap (e.g. universities, research non-profits). | Some cap-exempt employers may now have to compete under the cap. |
| Employer Penalties & Scrutiny | Increase scrutiny of employers who violated program rules, impose penalties, and enforce anti-fraud measures. | Risk for companies with past noncompliance. |
| Third-Party Staffing Regulation | Tighten control over third-party placement of H-1B workers (e.g. staffing vendors). | Could limit subcontracting models that depend on visa labor. |
| $100,000 Fee | Enforce a new $100,000 application fee on new H-1B petitions filed after September 21, 2025. | Smaller firms and non-profits may struggle with cost burdens. |
These reforms, taken together, mark perhaps the most ambitious overhaul to the H-1B visa program in many years.
Weighted Selection: Bye Lottery, Hello Salary?
One of the most controversial changes is the shift from a lottery to a weighted selection process. Under the current system, when demand exceeds supply, USCIS runs a random lottery among registrants. The new rule would give multiple “entries” based on wage tiers. For example, petitions that offer a Level 4 wage (highest bracket) might be entered four times, Level 3 three times, and so on.
DHS expects to apply this new system for the 2026 H-1B cap. The shift would advantage higher-paying roles, rare skill sets, and major tech companies, while weakening prospects for lower wage roles.
Analysts warn this change could lead to a 48% drop in selection odds for lower-paid applicants.
Capping Privileged Employers: Universities on the Clock
Universities and research institutions have traditionally held a special exemption from the H-1B cap. That status allows them to hire foreign specialists without competing in the 65,000-visa lottery.
Now, Senator Tom Cotton has introduced the Colleges for the American People Act (CAP Act of 2025) to remove that exemption. If passed, that means faculty, staff, and foreign researchers at universities would compete under the same cap regime as private firms.
Beyond colleges, Cotton’s broader Visa Cap Enforcement Act targets non-profits and teaching hospitals, restricting their ability to use unlimited foreign staffing.
Universities fear this could lead to talent attrition, program cuts, and budget pressure. Columbia University alone estimates a $20 million hit under the new fee plan.
Who Wins, Who Loses?
Potential winners under the reform:
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Foreign applicants with high wages or exceptional credentials.
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Major tech firms or deep-pocketed companies that can afford higher costs.
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Employers who have complied cleanly with previous H-1B rules and avoid penalties.
Potential losers:
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Smaller companies or startups paying moderate wages.
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Educational institutions hiring foreign professors or researchers.
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Staffing firms relying on subcontracted H-1B labor.
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Applicants from lower cost regions whose wage offers fall into lower tiers.
Healthcare providers and rural systems could suffer especially. The American Medical Association and 53 medical groups have already requested that physicians be exempt from the $100,000 fee.
Rural hospitals and small school districts depend on immigrant doctors and teachers. One South Dakota school used H-1B visas to fill 15 vacant teaching roles.
Timeline and Rulemaking Process for the H-1B Visa Program Reform
The path from a policy proposal to a binding regulation in the United States follows a strict legal process. The Department of Homeland Security (DHS) has already completed the draft of its proposed H-1B visa program reform. That document is now under review at the Office of Management and Budget (OMB). This review is a mandatory step before any rule can move forward.
Once the OMB review is complete, DHS will publish the proposal in the Federal Register. This is the official government journal where agencies announce new or revised rules, allowing the public to access the full text. At that stage, employers, immigration attorneys, advocacy groups, and individual applicants will have a public comment period typically between 30 and 60 days, to share feedback or objections.
During this public comment phase, anyone can submit their opinions online through the Regulations.gov portal. DHS is legally required to read and consider all comments before making any final decision. If a large number of substantive objections arise, DHS may revise portions of the proposal or delay implementation.
After the comment period closes, DHS prepares a final rule. This version incorporates accepted feedback and outlines an official timeline for enforcement. The final rule must again be approved by the OMB before it becomes legally binding. Depending on the complexity of the responses, the entire rulemaking process can take several months or even more than a year before any new requirements take effect.
Meanwhile, one part of the reform (the $100,000 H-1B petition fee) already has a fixed start date. According to DHS guidance, this fee applies only to new petitions filed after that date. Current H-1B visa holders, those seeking renewals, or employers who submit their petitions before September 21 will not be affected by the new charge. (Biz Legal Services, Manifest Law)
What Should Applicants and Employers Do Now?
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Review wage offers: Higher salary offers may yield better odds under the proposed weight system.
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Audit compliance history: Employers with irregularities should prepare for stricter enforcement.
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Monitor rule publications: Watch for the Federal Register notice, guidelines, and public comment windows.
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Plan budget for fees: Factor in the $100,000 cost into staffing decisions for new H-1B hires.
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Reassess hiring paths: Consider alternative visa categories or relocation strategies if H-1B access narrows.
For foreign professionals aiming to work in the U.S., understanding these changes is critical. Lower paid roles and traditional cap-exempt paths like universities are likely to shrink. On the other hand, high pay and compliance may become the new standard for access.
Why This Reform Is Necessary
The H-1B visa program sits at the intersection of U.S. innovation, labor markets, and immigration policy. The proposed changes will reshape which foreign professionals gain entry, how employers compete for talent, and how universities recruit researchers.
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Talent pipeline shift: High wage priority may concentrate opportunity among elite tech sectors.
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Academic and research impact: Universities may lose access to global talent if cap exemption disappears.
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Labor market consequences: Some industries may face shortages if they can’t afford the higher cost of foreign workers.
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Global competitiveness: Other nations may become more attractive for skilled professionals shut out by U.S. constraints.
As the rule evolves through public comment, stakeholders have the opportunity to influence final form. Congress may also step in especially with bills like the CAP Act already under consideration.
Partner with Maple Crest Immigration Law
These changes are complex, fast-moving, and potentially disruptive. Whether you are a foreign professional, university, research center, or tech company, Maple Crest Immigration Law can help you navigate this evolving landscape:
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We monitor regulatory updates and analyze their implications.
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We design strategies that optimize your salary offers and eligibility.
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We guide public comment submissions, compliance audits, and litigation options.
Don’t wait until the rule is finalized. Contact Maple Crest Immigration Law today to assess your current petitions, future hiring plans, and risk mitigation strategies.
