H-1B visa changes: US bill seeks $150,000 wage floor, end of OPT & lottery

H-1B reform is back in the US spotlight as Senator Jim Banks proposes scrapping OPT, raising wages to $150,000 and ending the visa lottery

H-1B visa reform is back in the spotlight. According to US-based right-wing outlet Breitbart News, Senator Jim Banks has introduced the American Tech Workforce Act—a Bill that would raise the H-1B wage floor from $60,000 to $150,000, abolish the OPT programme for foreign students, and replace the visa lottery with a system favouring the highest bidders.

 

Notably, the official portal of the US Congress confirms that the Bill was presented on September 17, 2025, though its full details are not yet public. Even so, discussions around such changes have been circulating for months, with senior officials signalling a tougher approach to employment visas.

 

Bill proposes raise in salary threshold and ends OPT

 

According to Breitbart, Banks said the legislation was meant to tackle corporate misuse of immigration rules. “This Bill puts American workers first,” said Banks. “Corporations rigged the system to flood the country with cheap foreign labour and drive down wages.”

 

The Bill seeks to:

 

1. Scrap the Optional Practical Training (OPT) scheme that lets nearly half a million foreign graduates, including many Indians, work in the US after graduation

 

2. Set a new minimum H-1B salary of $110,000 (adjusted for inflation) or equal to the wage of a US worker in the same role, whichever is higher, with a provision that could push this up to $150,000

 

3. Restrict third-party staffing, limiting visa validity to one year when workers are placed at client sites

 

Tech giants are already under pressure. Microsoft, which laid off 15,000 US employees in 2025 while continuing to sponsor H-1B visas, has drawn particular scrutiny. Critics argue the system fuels a “shadow economy” of subcontractor-run sweatshops, many controlled by Indian outsourcing firms. 

 

Pushback against big tech hiring

 

“Big Tech is setting aside some of the most lucrative and valuable career opportunities in America and giving them exclusively to foreign guest workers,” Banks told Breitbart News. “They’re cutting out Americans to save a few bucks. It’s domestic outsourcing. This shocking disregard for American workers and their role in our nation’s future is unpatriotic.”

 

Banks and his supporters claim visa programmes displace at least one million Americans, keeping wages down while allowing firms to exploit foreign workers with promises of green cards.

 

While details of the Bill are not yet available on the official US Congress portal, the move fits into a wider pattern. Last month, US Secretary of Commerce Howard Lutnick confirmed that the Trump administration was preparing sweeping H-1B reforms. “I’m involved in changing the H-1B programme. We’re going to change that programme, because that’s terrible,” Lutnick said on Fox News.

 

Later, in a social media post, Lutnick wrote: “The current H-1B visa system is a scam that lets foreign workers fill American job opportunities. Hiring American workers should be the priority of all great American businesses.”

 

Political voices weigh in

 

Florida Governor Ron DeSantis also criticised the visa system. “These companies game the system. You have some of these companies that are laying off large numbers of Americans while they’re also getting new H-1Bs and renewing H-1Bs,” he said.

 

DeSantis added that the visa, once a pathway to attract global talent, now serves a narrower pool. “Most of them are from one country, India. There’s a cottage industry about how people make money off this system,” he said.

 

Indians remain the largest group of beneficiaries. Each year, 65,000 H-1B visas are issued under the general cap, with another 20,000 for those holding US advanced degrees.

 

A new wage-based selection plan

 

On August 8, the US Office of Information and Regulatory Affairs cleared a draft rule called “Weighted Selection Process for Registrants and Petitioners Seeking to File Cap-Subject H-1B Petitions.” It now awaits release by US Citizenship and Immigration Services (USCIS) for public comment.

 

“While the text of the proposed rule has not yet been released, the proposal could potentially replace the current random H-1B lottery system with a wage-based selection process,” Sheela Murthy, president and CEO of the US-based Murthy Law Firm told Business Standard.

 

Joel Yanovich, attorney at the same firm, explained that this was a revival of Donald Trump’s earlier attempt. “In January 2021, near the end of Trump’s first term in office, he unsuccessfully attempted to implement a rule that would have tied the H-1B lottery selection process to the wage level. Presumably, the new rule will be similar to the 2021 rule.”

 

How the lottery works today

 

Annual cap: 85,000 visas

65,000 for general applicants

20,000 reserved for US advanced degree holders

When applications exceed the cap, a computerised draw decides who proceeds

 

“If the rule is substantially similar to the 2021 rule, cap-subject H-1B petitions filed for entry-level positions would likely have next-to-no chance of being selected. This would undoubtedly harm foreign nationals who are recent graduates,” said Yanovich.

 

The four wage tiers

 

The US Department of Labor sets four prevailing wage levels for each job and location:

 

Level 1: Entry-level pay

Level 2: Some experience

Level 3: Experienced with advanced skills

Level 4: Highly specialised senior workers

 

Under Trump’s 2021 plan, level 4 roles would have been prioritised, with lower tiers following.

 

Indian students fear loss of OPT

 

Meanwhile, proposed end of the OPT route has rattled many students. According to an online poll conducted by Business Standard, nearly 1,200 respondents weighed in. A striking 78 per cent said they would no longer consider studying in the US if OPT were scrapped, while only 22 per cent said they would still pursue the opportunity.

 

Optional Practical Training is a temporary work authorisation for international students in the US holding an F-1 visa. It allows them to gain practical work experience directly related to their field of study.