Why US H-1B Rule Change Is Worrying Indian Tech Workers And Diaspora Families | India News

A major change in the United States’ H-1B visa selection process has raised concerns among Indian tech professionals and Indian American families after the Department of Homeland Security (DHS) confirmed that future selections will be weighted by wage levels rather than solely based on a random lottery.

The final rule, published in the Federal Register, allows H-1B cap and advanced degree selections to be made “in a weighted manner based on the wage level listed on each H-1B record,” depending on the salary offered by the potential employer.

Indian citizens, who account for a significant portion of H-1B approvals and face the longest employment-based green card backlogs, are closely watching change that could reshape access to jobs in the U.S. tech sector.

DHS said the change aims to address shortages in roles that require highly skilled workers, while also protecting domestic wages and employment opportunities. The department said the rule would prevent what it described as “repeated abuse of the H-1B program to displace and otherwise harm U.S. workers.”

During the public engagement process, employers, startups and academic institutions warned that H-1B professionals “foster innovation, productivity growth and entrepreneurship” and that international students make a vital contribution to economic growth. Some have argued that start-ups and small firms may have difficulty competing if high salaries become the main selection factor.

One commentary said startups depended on the program to hire workers with “niche expertise” and warned that making the system “more expensive and difficult to use” could undermine U.S. leadership in technology and innovation.

DHS dismissed those concerns, saying the rule would not restrict access to international talent. “Rather than limiting access to international talent, DHS believes that this rule will make it easier for employers of all types and sizes to attract and retain high-skilled, high-wage foreigners,” the department said.

Citing studies questioning the existence of the STEM workforce gap, the agency pointed out that unemployment among recent computer science graduates in the United States is rising and that real wages in related fields are stagnant or declining. He added that discouraging the hiring of low-wage foreign workers could benefit American workers who are “currently unemployed or underemployed.”

But critics said the policy added uncertainty to an already complex migration path. Many Indian citizens come as students, move on to Optional Practical Training, and rely on H-1B sponsorship to stay in the country while waiting years, sometimes decades, for permanent residence due to per-country caps.

Indian American respondents said the wage-heavy system may favor larger companies with deeper financial resources but disadvantage early-career professionals, research institutions and startups where many foreign workers begin their careers.

The final rule also addresses process integrity concerns, including fee manipulation, inconsistencies between records and petitions, and multiple filings by related entities. DHS said the changes create clearer legal standards and reduce the risk of litigation.

The department confirmed that the rule complies with civil justice reform guidelines and does not require additional environmental or tribal consultations.

Indian Americans, many of whom are U.S. citizens with relatives on work visas, warned that the changes could affect more than employment opportunities, potentially impacting family stability, housing decisions and long-term plans to settle in the United States.

(With inputs from IANS)