The United States may soon change how foreign workers are selected for high-skilled jobs. A new proposal signals that the government could move away from the current random H-1B visa lottery system. This shift could have a big impact on American graduates, tech workers, and companies that depend on global talent.
US Government Plans to Review H-1B Visa Rules
The United States government is planning a major review of how H-1B work visas are given out. A new proposal has been put forward by the U.S. Department of Homeland Security (DHS) in collaboration with U.S. Citizenship and Immigration Services (USCIS). This proposal could soon bring changes to how skilled foreign workers are selected for jobs in the US.
Currently, the H-1B visa program operates through a lottery system. Each year, employers submit applications for thousands of foreign workers, but only a limited number of visas are issued. So, winners are picked randomly. This means someone with rare skills and years of experience might be passed over, while someone less qualified may get chosen.
The title of the new proposal — “Weighted Selection Process for Registrants and Petitioners Seeking To File Cap-Subject H-1B Petitions” — suggests that the U.S. government is considering a system that prioritizes factors like skills, salary, or qualifications. The proposal is still under review and may be finalized within days or weeks. Once approved, it will be published in the Federal Register.
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The government is also trying to address issues with companies that may be misusing the visa program. Some companies hire large numbers of H-1B workers, not because Americans aren’t available, but because they can pay these foreign workers lower wages.
H-1B and Related Programs Under Scrutiny
The H-1B visa program is popular among large tech companies like Amazon, Google, Microsoft, and IBM. These companies argue they need to hire foreign workers because they can’t find enough skilled workers in the US. But critics, such as Kevin Lynn, Executive Director of the Institute for Sound Public Policy, say that’s not the full story.
Each year, thousands of American students graduate with computer science degrees. In 2023 alone, over 134,000 Americans finished their studies in this field. However, the government issued over 110,000 work permits to foreign workers in similar job fields through the H-1B program, along with two others — OPT (Optional Practical Training) and H-4 EAD (spousal work permits).
Kevin Lynn has argued that these programs are betraying young American tech graduates. He pointed out that the number of foreign work permits issued nearly matches the total number of American graduates in computer science — meaning many students are being locked out of entry-level roles.
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Recent college graduates in computer science and engineering are facing high unemployment rates. In early 2025, jobless rates among computer science grads reached 6.1%, while computer engineering grads faced a rate of 7.5%. This is much higher than the average 4.0% unemployment rate for all US workers.
Surveys show that about 1 in 4 students who majored in computer-related fields now wish they had chosen a different subject. Lynn believes programs like H-1B and OPT are directly responsible, making it harder for new American graduates to find work in their own country.
Outsourcing Concerns and Calls for Action
Concerns about outsourcing have been raised by Ron Hira, a political science professor at Howard University and a research associate at the Economic Policy Institute (EPI). He has studied the H-1B visa system for years and testified before Congress on how it affects American jobs.
Hira says the H-1B program is used by outsourcing companies like Infosys, Tata, Wipro, Cognizant, and Accenture to move jobs offshore. These companies offer “global delivery models” to their clients, promising to handle IT work more cheaply by doing most of it overseas. Only a small amount stays in the US — and those jobs are often filled by H-1B workers instead of local hires.
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According to Hira, around 40% of all H-1B visas go to these kinds of outsourcing middlemen. These firms often pay lower wages to foreign workers and use the visa system to avoid hiring Americans.
Big Tech Pay Gaps and Data Blind Spots
Even big tech firms like Apple, Amazon, and Microsoft have been flagged for paying many of their H-1B workers at the two lowest wage levels — Level 1 and Level 2 — which are below the local median salaries. Hira claims this allows them to pay H-1B workers 20% to 40% less than they would pay an American for the same job.
Hira also points out that it’s been hard to track the real impact of offshoring, as the government does not collect enough data on white-collar jobs being moved abroad. He believes that companies are now using artificial intelligence (AI) as a cover story, saying layoffs are due to automation when in reality, offshoring and cheaper labor are the driving forces.
To fix the issue, Hira has laid out several steps. He says the Department of Labor should implement stronger wage rules, conduct audits, and enforce proper classifications of job skill levels. He also recommends that the USCIS replace the random H-1B lottery with a selection process that favors higher-paid and more qualified applicants. Finally, Hira suggests that Congress follow Canada’s lead and require companies to recruit American workers first before turning to H-1B applicants.