US to Replace H-1B Visa Lottery with Merit-Based System

The US administration plans to replace the current H-1B visa lottery system with a new merit-based selection process.

The Donald Trump administration in the United States is planning to replace the existing lottery system for issuing H-1B visas with a new merit-based selection system. Under this proposal by the US Department of Homeland Security (DHS), applicants for the 85,000 H-1B visa slots will be selected based on their qualifications and salary level. This system will prioritise applicants with higher skills and higher salaries. Since Indians are the largest beneficiaries of H-1B visas, this new system will directly impact Indian professionals.

Difference between H-1B Visa and the Proposed Merit-Based System

Parameter	Lottery System	Merit-Based System
Selection Process	Random, equal opportunity for all	4 skill levels, prioritising higher skilled applicants
Prioritisation	No special prioritisation	Prioritising higher salaried applicants
Goal	Fair process for all	Filtering out less experienced and smaller company applicants
Concern	Opportunity for lower-paid individuals	Limited opportunities for freshers and lower-paid individuals

Impact on Indians

Indians are the largest beneficiaries of H-1B visas. In the fiscal year ending September 2023, 58% of the 68,825 initial employment visas and 79% of the remaining 210,000 visas (including extensions) were allocated to Indians. Compared to this, China received 16,094 and 29,250 visas, respectively. Thus, the change in the visa system will have a significant impact on Indian professionals. The new system’s prioritisation of higher-paid and experienced applicants may limit opportunities for freshers and those working for smaller companies.

Prioritising Skilled Professionals

The proposed merit-based system aims to prioritise highly skilled and higher-salaried professionals, but this could create challenges for less experienced applicants and smaller companies. Indian professionals, who are the primary beneficiaries of this visa, will need to prepare for this change.