H-1B Visa Overhaul Looms as Commerce Secretary Labels Program a “Scam”

Washington, D.C., August 27, 2025 - In sweeping remarks that signal a major shift in U.S. immigration policy, Commerce Secretary Howard Lutnick today attacked the H-1B visa program as a “scam” and vowed to replace its lottery-based allocation with a wage-driven system under the Trump administration’s forthcoming reforms.

Lutnick’s comments, delivered in an interview on Fox News, mark the most forceful critique yet from the administration toward a program relied upon by hundreds of thousands of high-skilled foreign workers each year. “The current H-1B visa system is a scam that lets foreign workers fill American job opportunities,” he declared, adding, “Hiring American workers should be the priority of all great American businesses. Now is the time to hire American.”

Under the proposed changes, the traditional random lottery for the annual cap of 65,000 regular visas and 20,000 advanced-degree exemptions would be eliminated. Instead, petitions would be ranked and granted according to salary levels, effectively favoring higher-paid applicants first. The shift aims to attract “the best people” able to command top wages in specialty occupations such as engineering, technology, and medicine.

In parallel, federal regulators have moved closer to formalizing these reforms. On August 8, the White House’s Office of Information and Regulatory Affairs approved a draft rule to implement a “weighted selection process” for H-1B allocations. This rule, expected to be published in the Federal Register soon, would codify the wage-based approach, triggering a notice-and-comment period before final adoption.

Critics warn that the overhaul could disadvantage smaller employers, startups, and early-career professionals who may not secure top wage offers. Immigration advocates also caution that drastic changes could disrupt talent pipelines in critical industries, risking talent shortages and legal challenges once the new regulations take effect.

Key Points

• Commerce Secretary Howard Lutnick labels the H-1B program a “scam” and pledges to replace the lottery with wage-based selection.
• OIRA approval of a draft regulation paves the way for formal rulemaking and public comment on August 8.
• Reforms include eliminating random selection and prioritizing petitions by offered salary levels.
• Stakeholders foresee impacts on Indian IT professionals-who comprise over 70% of H-1B recipients-and potential legal challenges from businesses and advocacy groups.