The US government is preparing to tighten its visa rules in a big way, and this time, the focus is clearly on wages. The US Department of Labour (DOL) recently rolled out a proposal that could significantly raise the minimum salaries companies must offer when hiring foreign workers under programs like H-1B, H-1B1, E-3, and PERM.

Beyond these administrative changes, several legislative proposals from Republican lawmakers and state-level initiatives aim to further restrict or overhaul the H-1B program

Major push to change the H-1B system

Grassley’s H-1B and L-1 visa reform bill of 2025

Senator Chuck Grassley, a Republican from Iowa, has introduced the H-1B and L-1 Visa reform proposal as part of a broader bipartisan effort to reshape how visas are given out.

The main idea is to replace the current random lottery system with a merit-based process. Under this plan, preference would go to people with advanced degrees from US universities and to jobs that pay the highest wages, especially top-level positions.

The bill also includes stricter job protection rules. It would extend the “non-displacement” period, meaning companies would not be allowed to hire H-1B workers if they have laid off American employees within 180 days of filing.

EXILE calls for ending H-1B entirely

On a much tougher end of the debate, Republican Congressman Greg Steube has introduced the EXILE bill. This proposal goes further than reform. It calls for completely shutting down the H-1B visa program, arguing that it has been too heavily misused by companies and cannot be fixed anymore.

American jobs first pushes wage rules

This bill focuses mainly on wages. It would require companies to pay H-1B workers at least $110,000 a year, or the same salary they offer American workers, whichever is higher. It also includes a penalty system. Companies that break the rules repeatedly could be permanently banned from using the H-1B program.

H.R. 6937 proposal aims to end the program

Another proposal, H.R. 6937, was introduced by Marjorie Taylor Greene shortly before she stepped down. This bill also targeted the Immigration and Nationality Act and pushed for removing the H-1B category altogether. The goal, according to the proposal, was to stop the displacement of American workers.

H-1B reforms proposed by FAIR

These regulatory shifts are occurring alongside long-standing pressure from advocacy groups like the Federation for American Immigration Reform (FAIR). As a prominent Washington-based advocacy group whose proposals frequently influence congressional debate, FAIR is advocating for four key H-1B visa reforms to tighten its scope and limit its use.

First, there’s a push to end the “dual intent” nature of the visa. Right now, H-1B workers can apply for a green card even though the visa is meant to be temporary. However, according to the proposed reform, if it’s a short-term visa, it shouldn’t turn into a pathway to permanent stay. FAIR believes the H-1B program should remain strictly temporary.

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Second, they want visas to be given based on salary. Higher-paying jobs would get priority, ensuring only genuinely skilled roles are filled and cutting out the incentive to hire cheaper labour.

Third, there’s a proposal to favour candidates who studied in the US, especially those with a master’s degree or higher.

And finally, stricter checks. Employers should prove they tried hiring Americans before turning to foreign workers, along with the possibility of random audits to keep things in check.

FAIR has been consistently pushing these ideas through policy papers, public comments to federal agencies, and support for bills in Congress. The group argues that these steps are needed to bring the H-1B program back to its original temporary nature and to stop it from pushing down wages for American workers. This comes alongside the Department of Labor’s March 2026 proposed rule focused specifically on increasing prevailing wage levels.

DOL proposes new rule that could change salaries

Meanwhile, a new proposal from the Department of Labour (DOL), released on March 27, takes direct aim at wages. The idea is to raise the minimum pay levels for H-1B jobs so companies don’t use the system to cut costs.

Right now, these jobs are split into four levels based on pay, entry-level, qualified, experienced, and fully competent. These levels are tied to wage percentiles, starting as low as the 17th percentile.

The new proposal pushes those numbers up

Level I moves from the 17th to the 34th percentile

Level II from the 34th to the 52nd

Level III from the 50th to the 70th

Level IV from the 67th to the 88th

Back in February, the Department of Homeland Security (DHS) changed how visas are handed out. Instead of a random lottery, higher-paying jobs are now given better chances. So, the system is slowly shifting to reward higher wages from both ends.

What it could mean for companies

If the rule goes through, companies that rely heavily on H-1B visas, especially in tech and engineering, will feel the impact. Higher wage requirements could mean higher hiring costs. As a result, companies may think twice before filing for lower-paying or entry-level roles.

The focus could shift more towards genuinely high-skill jobs, while also pushing firms to hire and retain more American workers.

What the visa was meant for, and what changed

The H-1B visa program began in 1990 to help US companies fill real skill gaps. But over the years, critics say it has drifted far from that goal. Many H-1B roles today are paid below the average wage for that job. As one argument goes, the program is no longer just about filling shortages, it’s also being used to replace American workers with lower-paid foreign hires.

On paper, the visa limit is 65,000 a year, plus 20,000 for advanced degree holders. However, data shows that the number goes much higher. Certain categories, like nonprofit and university jobs, are exempt. Renewals also don’t count toward the cap. In fiscal year 2024, around 400,000 H-1B petitions were approved, far above the official limit.

Another big concern is how companies use the program. Even while talking about worker shortages, major tech firms have carried out large layoffs. Critics say some of these jobs are then filled with H-1B workers who are paid less, even if they have similar skills.

As the department put it, “[The rule] aims to curb abuse of certain visa programs by reducing the incentive to displace American workers with low-wage foreign visa holders and establishing parity between the wages paid to US workers and foreign workers.”

Disclaimer: This article is for general informational purposes only and does not constitute legal, immigration, or tax advice. Immigration laws and government policies are subject to frequent change without notice. While we strive to provide accurate updates, readers are strongly advised to verify the latest requirements with the official embassy, consulate, or government portal of the respective country. Financial Express is not responsible for any decisions made based on this information. For personalised guidance, please consult a qualified immigration attorney or a certified professional advisor.