As the United States moves to replace its longstanding H-1B visa lottery with a wage-based selection mechanism, the Indian IT industry body has said that such a decision will impact smaller and mid-sized companies working in the US, which depend on academic calendars, client delivery schedules, and product release cycles to recruit their employees.
Nasscom’s statement comes at a time when the Donald Trump administration is replacing the random lottery system that has long selected H-1B visa beneficiaries. Now, a process will be implemented where employees with higher wages and better skills will be prioritised.
“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,” Nasscom said in a statement.
It warned that the shift could result into an aversion in international students from pursuing higher education in the US as the new system will restrict entry level job opportunities under its wage-weighted system thus weakening the talent base.
This could prove to be a negative situation for the US, weakening against the country’s goals of strengthening competitiveness, driving innovation, and supporting higher education.
The move especially affects Indian IT professionals, as a significant number of US-based techies are Indian by nationality.
Legal, economic, occupational concerns
Nasscom further said that the new H-1B visa selection process raises important legal, economic, and operational concerns as it is a significant departure from the old lottery system.
The new H-1B visa rule will be implemented from 27 February, 2026, and will be used during the FY27 H-1B cap registration season.
Nasscom urged a phased implementation of the wage-weighted approach along with sufficient lead time, suggesting a delay till the FY28 lottery cycle. This would provide employers the necessary runway to adapt processes, ensure compliance, and maintain confidence in the stability of the US talent and investment environment.
The new framework puts the statutory focus on “specialty occupation” at risk by assigning multiple selection entries on the basis of Occupational and Employment Wage Statistics levels.
“Though the intent behind the proposed changes to promote high-skill employment, curb misuse, and protect US wages is well understood, a transparent, trusted visa framework is essential to maintaining the strength of the US technology ecosystem,” Nasscom said.
Balanced approach, consultations
Nasscom said that the H-1B visa programme was not just about fulfilling labour needs, but also putting the US in a leadership position in industries that would define the 21st century.
“A balanced, consultative approach will be critical to ensuring that reforms strengthen rather than inadvertently weaken the innovation advantage and global competitiveness of the United States,” it said.
The Trump administration has introduced a number of changes to the H-1B visa programme that companies rely on to hire foreign talent as its scrutiny to curb immigration intensifies.
H-1B petitions at Level I and Level II wage bands frequently represent entry-level roles for graduates of US universities in science, engineering, and computing disciplines, forming a vital part of the STEM talent pipeline.
