The U.S. Department of Homeland Security (DHS) has submitted a proposal to the Office of Information and Regulatory Affairs that aims to revamp the current H-1B visa lottery system, signaling a shift toward a more merit-based selection process under President Donald Trump’s leadership.
According to a July 17 filing, the administration seeks to implement a “weighted selection process” for the annual cap on H-1B visas—potentially favoring applicants based on higher wages or other criteria. The current system operates as a random lottery, giving all eligible applicants an equal chance regardless of skill level or salary.
While details of the proposed changes remain limited, the move is expected to prioritize highly skilled, better-compensated professionals, marking a significant policy shift that could impact thousands of foreign tech workers.
Elon Musk Reacts
Tesla CEO Elon Musk responded to the proposal with a one-word post on X (formerly Twitter): “Great.”
Musk has long been critical of the existing system, previously calling it “broken” and pledging to “go to war on this issue” unless reforms were introduced. “I’ve been very clear that the program is broken and needs major reform,” he said last year.
Political Divide Over Immigration
The H-1B visa system has become a flashpoint in immigration debates, particularly between Trump’s “America First” base and business leaders like Musk, who argue for a more talent-driven approach. While Trump’s supporters have often called for stricter limits on work visas, others in the tech and business sectors have pushed for reforms that support innovation and growth.
Indians Continue to Dominate H-1B Approvals
Currently, the U.S. grants 85,000 new H-1B visas each year, including 20,000 slots reserved for U.S. master’s degree holders. However, demand far exceeds supply, prompting the need for a lottery-based allocation through U.S. Citizenship and Immigration Services (USCIS).
Indians remain the dominant group among H-1B recipients. According to India Today, 77% of approved visas in the latest round went to Indian nationals. In 2023, that figure was over 70%.
If enacted, the proposed reform could reshape the landscape for skilled foreign workers and signal a major policy win for business leaders seeking to modernize the visa system.