On September 19th, when US President Donald Trump signed a Presidential proclamation affecting changes to the visa policy, the stocks of Indian tech companies, which have been significant beneficiaries of the H-1B visa program over the years, took a beating. One, a steep hike for each H-1B visa from the earlier fees of around $2000-$5000 to $100,000 starting in 2026. The second, following the US government’s agenda to stop wage arbitrage as a reason for hiring, on September 24th, the Department of Homeland Security (DHS) published a proposed rule to change how U.S. Citizenship and Immigration Services (USCIS) operates the lottery process to select H-1B visa petitions.

Now both these changes are set to be implemented, given that the United States District Court of Columbia has dismissed a case filed by the largest US business lobby group, the US Chamber of Commerce & the Association of American Universities, challenging Trump’s authority to hike visa fees, and the DHS is bringing out the final rules on H-1B work visa selection process. The new process replaces the earlier lottery process through a weighted selection process based on the weightage given to those in higher paid jobs.

New selection process

The new selection process for H-1B visas starting February 27, 2026, will see the USCIS conduct a weighted selection that will depend on whether each of the visa petition job being applied for is equal to or exceeds the relevant Standard Occupational Classification in each of the regions where the job position is based. Under this process, registrations for petitions depending on the wage levels will be placed in selection pools, and each beneficiary will only be counted once toward the numerical allocation projections, regardless of how many registrations are submitted for that beneficiary or how many times the beneficiary is entered in the selection pool.

With concern largely directed towards US tech talent employment opportunities, in its responses, the DHS noted that, “This rule will incentivize employers to use the H-1B program to primarily fill relatively higher-paid, higher-skilled positions to supplement, rather than replace, U.S. workers. Prioritizing registrations or petitions, as applicable, based on equivalent wage levels will help restore the congressional intent for the program of helping U.S. employers fill labor shortages in positions requiring highly skilled and/or highly educated workers”.

On the new visa selection process, Indian technology industry body Nasscom said that while the intent behind the proposed changes is to promote high-skill employment, curb misuse, and protect U.S. wages, "By assigning multiple selection entries based on Occupational and Employment Wage Statistics levels, the framework risks moving beyond the statutory focus on “specialty occupation” and toward wage ranking, potentially introducing regional and occupational distortions. Wage levels vary significantly by geography and role, and a weighted model could inadvertently disadvantage small and mid-sized enterprises, startups, research institutions, and university-linked employers that operate with moderate but market-appropriate wage structures,” said in a statement.

The H-1B petitions at Level I and Level II wage bands, which would largely be used by US STEM graduates forming the talent pipeline for tech companies, they could also potentially get affected. Nasscom has batted for a phased implementation with sufficient lead time. “Delaying implementation until the FY 2028 lottery cycle would provide employers the necessary runway to adapt processes, ensure compliance, and maintain confidence in the stability of the U.S. talent and investment environment.”

H-1Bs

US visa conundrum: New process to test Indian tech talent resilience