US H-1B Visa Bill Targets Lottery, Raises Wages, and Ends OPT

H-1B Visa Bill: Major Overhaul for America’s Tech Workforce

In September 2025, the US Congress witnessed the introduction of a transformative bill that could reshape the landscape of skilled immigration. Senator Jim Banks, a Republican, unveiled the American Tech Workforce Act, a legislative proposal that seeks to fundamentally change the rules governing the H-1B visa program—the gateway for thousands of foreign tech professionals to work in the United States.

Lottery System Scrapped, Wage Floors Raised

For years, the H-1B visa lottery has been a game of chance. Every spring, tens of thousands of engineers, developers, and data scientists hope their applications are plucked from the pile. The new bill throws that system out the window. Instead, it promises a merit-driven process: visas will be allocated to those employers willing to pay the highest salaries.

The wage floor is set to leap from the current $60,000 to a striking $150,000—or the average salary for similar US workers, whichever is higher. This adjustment isn’t static; it will rise each year with inflation, ensuring that the minimum pay reflects the changing economic climate. The bill also proposes limiting H-1B assignments to third-party job sites to one year, a move likely aimed at curbing outsourcing practices that critics argue have undermined local job security.

OPT Program on the Chopping Block

Perhaps the most controversial element is the elimination of the Optional Practical Training (OPT) program. OPT has allowed international graduates—mainly in STEM fields—to work in the US for up to three years after earning their degrees. With around half a million workers benefiting from OPT, its removal signals a dramatic shift. Lawmakers argue that the program has become a loophole for companies to skirt H-1B caps and hire cheaper labor, a criticism recently amplified in congressional hearings and media coverage. Reuters notes that this part of the bill has drawn sharp reactions from universities and tech firms, who warn of diminished US competitiveness in attracting the world’s brightest minds.

Implications for American and Foreign Workers

Supporters of the bill, including Senator Banks, position these reforms as a defense of American jobs. They point to high-profile cases—Microsoft, for example, which reportedly sought thousands of H-1B visas while laying off domestic staff—as evidence that the current system can be abused. The new salary requirements, they say, will discourage companies from replacing US workers with lower-paid foreign labor and ensure that only the most skilled—and highly compensated—professionals are brought in.

However, the impact will ripple far beyond tech giants. Many H-1B recipients hail from India and other countries where the visa is viewed as a stepping stone to permanent residency and career advancement. Smaller outsourcing firms, which often operate on tighter margins, may find themselves priced out of the market. For these companies, the $150,000 wage floor could be insurmountable, potentially narrowing opportunities for both foreign workers and the businesses that rely on them.

Tech industry groups and critics warn that the reforms could stunt innovation and slow growth. Software, engineering, and research roles—fields where H-1B visas are most common—could see a contraction in available talent, forcing firms to rethink recruitment strategies or relocate operations overseas.

Debate in Washington: Protectionism vs. Global Talent

The bill is set to ignite fierce debate in Washington. At its core lies a tension familiar to many countries: how to balance the protection of domestic jobs with the need to remain open to international expertise. Proponents argue that higher wages and the end of the lottery will restore fairness and transparency, while critics see potential for talent shortages and increased costs.

The proposed removal of equal working conditions requirements—meaning employers would no longer have to guarantee H-1B holders the same job protections as US workers—adds another layer to the discussion. This change could affect worker rights and further complicate an already complex system.

As lawmakers weigh the bill’s merits, stakeholders across the spectrum—students, tech firms, universities, and advocacy groups—are bracing for a period of uncertainty. The fate of the American tech workforce may well hinge on the decisions made in the coming months.

The Road Ahead: What’s at Stake?

For foreign students, the end of OPT could mean fewer opportunities to gain experience in the US and a tougher path to securing long-term employment. For tech companies, the prospect of higher wage floors may increase costs but could also force a reassessment of how they source and value talent. For American workers, the bill promises tighter safeguards against displacement but may also reduce the dynamism that comes from a globally competitive workforce.

As the American Tech Workforce Act moves through Congress, its provisions will be scrutinized by all sides. Will the reforms create a more equitable and prosperous future for US workers? Or will they slow innovation and hinder America’s role as a magnet for talent?

Based on the facts, the H-1B visa bill marks a pivotal crossroads for US immigration and the tech sector. Its passage would prioritize higher wages and domestic hiring, but at the cost of potentially narrowing America’s access to the world’s brightest minds. The outcome will set the tone for how the country balances national interest with global ambition.