The Donald Trump administration is revamping the random lottery system that has long chosen visa recipients, which coincides with Nasscom's announcement.
The Indian IT industry body has stated that the United States' decision to replace its long-standing H-1B visa lottery with a wage-based selection process will affect smaller and mid-sized US businesses that rely on academic calendars, client delivery schedules, and product release cycles for hiring.
The Donald Trump administration is revamping the random lottery system that has long chosen H-1B visa recipients, which coincides with Nasscom's announcement. Employees with greater talents and higher salaries will now be given priority in this process.
According to a statement from Nasscom, "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."
It cautioned that because the new system will limit entry-level job chances under its wage-weighted system, so diminishing the talent base, international students may become less inclined to pursue higher education in the United States.
This might be detrimental to the US, undermining the nation's objectives of boosting higher education, fostering innovation, and enhancing competitiveness.
Given that a sizable portion of US-based techies are Indian by nationality, the decision particularly impacts Indian IT experts.
Legal, financial, and professional issues
Nasscom added that because the new H-1B visa selection procedure differs significantly from the previous lottery system, it presents substantial legal, economic, and operational issues.
Beginning on February 27, 2026, the new H-1B visa regulation will be in effect for the FY27 H-1B cap registration period.
Nasscom recommended a delay until the FY28 lottery cycle and called for a phased deployment of the wage-weighted system with adequate lead time. This would provide companies the time they need to modify procedures, guarantee compliance, and preserve faith in the stability of the US talent and investment landscape.
By allocating several selection entries based on Occupational and Employment Wage Statistics levels, the new framework jeopardizes the statutory emphasis on "specialty occupation."
"A transparent, trustworthy visa framework is essential to maintaining the strength of the US technology ecosystem, even though the intent behind the proposed changes to promote high-skill employment, curb misuse, and protect US wages is well understood," Nasscom stated.
Consultations and a balanced approach
According to Nasscom, the H-1B visa program aims to place the US at the forefront of industries that will define the twenty-first century in addition to meeting labor demands.
It stated that "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."
As the desire to reduce immigration grows, the Trump administration has made several modifications to the H-1B visa program that businesses use to acquire foreign talent.
A crucial component of the STEM talent pipeline, H-1B petitions in Level I and Level II wage bands often represent entry-level positions for graduates of US universities in the fields of science, engineering, and computers.
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