- Representative Jim Banks introduced legislation to mandate a $150,000 wage floor for all H-1B visas.
- A new selection system favors higher-paid positions by granting them up to four lottery entries.
- Proposed rules seek to eliminate Optional Practical Training and increase entry-level wage benchmarks significantly.
Rep. Jim Banks introduced legislation that would impose a $150,000 wage floor on every H-1B visa, eliminate Optional Practical Training and replace the lottery with a highest-bidder system. The American Tech Workforce Act, listed as S. 2821 / H.R. 5418, arrived in September 2025.
The proposal has not moved alone. Federal agencies have pursued separate changes that favor higher-paid positions and raise the cost of lower-wage sponsorship. Together, those measures would make entry-level hiring harder before Congress acts on the bill.
The first change affects selection. A Department of Homeland Security final rule dated February 27, 2026, replaced the random lottery for the FY 2027 season with entries tied to Department of Labor wage levels.
Free toolH-1B Cost Calculator OnlineLevel I positions receive one entry. Level II positions receive two, Level III receives three and Level IV receives four. Higher-paid jobs therefore receive the strongest chance in the selection system.
USCIS spokesman Matthew Tragesser described the policy shift on December 23, 2025.
| India | China | ROW | |
|---|---|---|---|
| EB-1 | Oct 15, 2022 | Jul 01, 2023 | Current |
| EB-2 | Unavailable | Sep 01, 2021 | Current |
| EB-3 | Jan 01, 2014 | Jan 01, 2022 | Sep 01, 2024 |
| F-1 | Jan 22, 2020 ▲403d | Jan 22, 2020 ▲403d | Jan 22, 2020 ▲403d |
| F-2A | Aug 22, 2026 ▲31d | Aug 22, 2026 ▲31d | Aug 22, 2026 ▲31d |
“The existing random selection process of H-1B registrations was exploited and abused by U.S. employers who were primarily seeking to import foreign workers at lower wages than they would pay American workers. The new weighted selection will. [incentivize] American employers to petition for higher-paid, higher-skilled foreign workers.”
The wage proposal would push entry-level salaries above local-market norms
The Labor Department proposed another change on March 27, 2026. Its rule would move the entry-level Wage Level I benchmark from the 17th percentile to the 34th percentile of local market wages.
That adjustment would reach well beyond a filing preference. A software engineer starting in San Francisco would need a salary of $162,000 to qualify under the proposal. In New York, the figure would reach approximately $132,000.
The agency said the proposal “seeks to increase the wage levels to curb abuse of certain visa programs by reducing the incentive to displace American workers with low-wage foreign visa holders.”
The bill’s $150,000 threshold and the agency’s proposed wage levels are separate measures. Their practical effect would overlap in high-cost labor markets, where an entry-level salary can already approach or exceed the proposed statutory floor.
Employers would face a second cost barrier before a worker starts
A separate payment requirement could add another layer of expense. A $100,000 H-1B fee, introduced through a Presidential Proclamation on Sept 19, 2025, remains tied to litigation.
If the payment survives an appeal, the first-year expense for a new H-1B employee could exceed $250,000. That estimate includes the fee, a 30% mandated salary increase and legal costs.
| Cost pressure | Amount or effect |
|---|---|
| Proposed H-1B payment | $100,000 |
| Possible first-year employee cost | More than $250,000 |
| Mandated salary increase included in estimate | 30% |
| Average added wage cost for a small entity | $20,000 per worker |
Small businesses and startups would feel the pressure most directly. The DOL estimates that the average wage cost for a small entity would rise by $20,000 per worker, excluding the proposed $100,000 flat fee.
Recent graduates would meet the weakest selection odds and lose a backup route
Recent graduates generally qualify for Wage Level I or II positions. Under the weighted system, Level I applicants receive one entry while Level IV applicants receive four.
The research estimates that entry-level candidates face a 75% lower statistical probability of selection than senior professionals. A graduate may therefore confront both a higher salary requirement and a weaker chance of being chosen.
The administration has also signaled plans to end or severely restrict Optional Practical Training, commonly called OPT. That program has served as a route for international students to gain U.S. work experience after graduation.
A final rule effective September 15, 2026, will end “Duration of Status” for students. Students instead will need fixed-term extensions, which face stricter USCIS scrutiny.
The bill would remove OPT entirely if enacted. The student-status rule is already scheduled to take effect, while the wage-weighted lottery has already replaced random selection for the FY 2027 season.
The agencies are pursuing the same direction through separate measures
The DOL proposal and the DHS selection rule do not create the $150,000 requirement in the legislation. They do, however, raise the wage and selection barriers facing lower-paid positions.
The disputed fee adds a separate financial question. In a July 28, 2026, alert, DHS said it would follow the court’s order vacating the payment requirement while considering its next steps.
“DHS strongly disagrees with the court's order [vacating the $100,000 payment requirement]. DHS strongly disagrees with the First Circuit’s order denying the stay request but will comply with the court's order while DHS considers next steps. If this order is later lifted, DHS still plans to collect the payment.”
The selection rule, the prevailing-wage proposal, the student admission rule and the legislation each operate on a different timetable. The next fixed date is September 15, 2026, when the Duration of Status change takes effect.
