H-1B reset: Students, entry-level talent may be the hardest hit

The year 2025 is set to mark a turning point in the United States’ immigration regime, with the random H-1B visa lottery system, used for over three decades, giving way to a new weighted selection framework.

- AASHISH ARYAN & SHIVANI SHINDE

Adding to the shift, a US federal judge has upheld President Donald Trump’s proposal to impose a $100,000 fee on new H-1B visa applications. Together, these changes have injected fresh uncertainty into the global talent pipeline, particularly for international students and entry-level professionals, as employers recalibrate hiring strategies around wage thresholds and local talent availability.

Industry body Nasscom in a statement said the recent changes with regards to the wage-weighted selection mechanism for H-1B visas represents a significant departure from the longstanding neutral lottery system, and raises important legal, economic and operational concerns. "A sudden shift to a wage-weighted model would introduce uncertainty, increase compliance complexity, and disrupt long-established workforce planning, particularly for smaller and mid-sized firms that align recruitment with academic calendars, client delivery schedules, and product release cycles," said Nasscom.

The new system, according to experts, is likely to tilt early-career hiring in favour of domestic candidates. While this could benefit large technology companies with deeper pockets, smaller firms and startups that rely on global talent may face greater pressure.