The H‑1B visa system has been labeled a “scam,” with US Commerce Secretary Howard Lutnick indicating that the administration plans swift reforms to curb alleged abuse in the program while shifting toward wage-based immigration and merit-driven selection under the Trump government’s agenda, as reported in the original piece referring to US policy discussions. The statement underscores a broader push to tighten H‑1B and green card pathways by prioritizing higher-paid, high-skill roles.
Proposed changes
Officials have outlined a move away from the current lottery toward a more selective, wage-prioritized model for H‑1B allocation, alongside planned adjustments to the green card process, according to remarks attributed to Lutnick.
The argument advanced is that average US citizens earn about $75,000 annually, compared with approximately $66,000 for typical employment-based green card applicants, presented as a rationale for wage-linked selection.
Why the shift
The proposal centers on eliminating the random H‑1B lottery and replacing it with wage-based distribution, described as recently advancing in rulemaking, while noting the program’s 85,000 annual cap widely used by the tech sector.
A similar wage-tiered approach was floated in 2021, dividing offered salaries into four levels to rank petitions, framing higher pay as a proxy for skill and labor market need.
Earlier recommendations
The Department of Homeland Security had previously sought to replace random selection with wage priority, assigning applications by offered pay across four salary bands to emphasize well-compensated, high-skill jobs.
That initiative, linked to the “Buy American, Hire American” policy, aimed to funnel H‑1Bs toward highly skilled talent, but the subsequent Biden administration withdrew the rule in 2021 following criticism that it could sharply reduce opportunities for foreign workers.
Trump’s criticism of H‑1B
Courts had earlier blocked efforts to raise mandated wages and narrow eligibility for H‑1B occupations, but new clearances suggest renewed momentum for altering allocations.
Former President Donald Trump has repeatedly argued the program is misused to replace American workers with lower-paid foreign labor, alleging some companies exploit H‑1B to undercut domestic wages.