H-1B Visa Policy Faces Lawsuit; Weighted Lottery Proposed

The Trump administration has proposed significant updates to the H-1B visa program, which allows U.S. employers to hire foreign workers in specialty occupations, fashion, and certain Defense Department projects.

A recent proclamation, effective Sept. 21, 2025, requires foreign nationals outside the U.S. seeking H-1B status to either pay a $100,000 fee or receive a national interest waiver from the secretary of Homeland Security. No other exemptions were included.

In response, the first lawsuit challenging the fee was filed on Oct. 3. Plaintiffs — including unions, health care organizations, schools, religious groups, and universities — argue the fee will severely limit their ability to hire essential workers. The complaint highlights:

• Health care systems could face staffing shortages, particularly in underserved areas.
• K-12 schools may struggle to fill teaching positions in rural or high-need districts.
• Religious organizations risk losing clergy who are critical to community life.
• Universities and research institutions may be unable to recruit faculty, hindering education and innovation.

Plaintiffs claim the fee exceeds presidential authority, undermines Congress’ intent, and reduces public access to health care, education, research, and religious services.

Meanwhile, the Department of Homeland Security (DHS) proposed a rule on Sept. 24 to shift H-1B cap selections from a pure lottery to a wage-weighted lottery. The public comment period is open through Oct. 24. Under the proposed system, higher-wage positions would have a greater chance of selection.

In response, Emily M. Dickens, J.D., SHRM chief of staff and head of government affairs, said, “We support DHS’ efforts to help optimize the H-1B program. We note, however, that a wage-weighted lottery may create challenges for sectors where salary is not the best measure of skill or value. Employers across the economy face talent shortages.

SHRM surveyed its members to ensure its feedback reflects the collective experience of U.S. employers who rely on skilled foreign talent to complement and supplement their workforces. Additionally, SHRM hosted a webinar, “Navigating New H-1B Policy: Implications for Employers and Talent Strategy,” on Sept. 25 to explore the latest H-1B updates and strategies for workforce planning.