• Insights

United States: DHS Proposal to Alter the H-1B Cap Selection Process Clears Federal Review

August 11, 2025

insight-news-default

Country / Territory

  • United StatesUnited States

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

At a glance

  • A Department of Homeland Security proposed rule that would apply a weighted selection process for H-1B cap cases has been cleared by the Office of Management and Budget (OMB).
  • The next step for the proposal is publication in the Federal Register for public feedback.
  • The exact content of the proposed rule – including whether or not it contains elements of the proposed allocations to the cap selection process introduced during the first Trump Administration – will not be known until publication.
  • The proposal would not take effect unless and until it undergoes a public comment period and moves through the final stages of rulemaking, which typically takes several months.

The issue

A Department of Homeland Security (DHS) proposed rule that would apply a weighted selection process to the annual H-1B cap has cleared federal review. The proposal was submitted to the Office of Management and Budget (OMB) for review three weeks ago.

Though details are confidential until publication in the Federal Register, the proposed rule could seek to supplement or replace the annual H-1B cap lottery by giving priority in the selection process to registrants who meet or exceed certain criteria, such as wage or education level.

During the final weeks of the first Trump Administration, an alteration to the cap selection process was finalized by DHS that would have largely replaced the computerized H-1B lottery with a system that allocated H-1B visa numbers according to the Department of Labor’s four-level prevailing wage system. That regulation would have first distributed H-1B cap numbers to registrants offered a wage that equaled or exceeded Level IV, the highest wage tier of the prevailing wage system, then would have selected registrations in descending order from Wage Levels III, II, and I; a computerized lottery would have been used only if the number of registrations for a specific wage level exceeded the number of H-1B cap slots available. The final rule was postponed in the first days of the Biden Administration and ultimately vacated by a federal court without having been implemented.

It is not yet known whether the proposal now under review is the same as the rule finalized in early 2021.

What’s next

It is expected that the proposed regulation will be released for publication in the Federal Register in the coming days or weeks, with a public comment period of 30 or 60 days. After giving meaningful consideration to the comments, the agency would then publish a final version of the rule with an implementation period. There is no set timeframe for publication of a final rule, though the process typically takes several months.

Comments from the business community will be important to make the Administration aware of the rule’s impact on the position of the United States in the competition for global talent. If your organization wishes to comment on the proposed rule after it is published, please contact your designated Fragomen professional or the firm’s Government Strategies and Compliance Group.

This alert is for informational purposes only. If you have any questions, please contact the immigration professional with whom you work at Fragomen. 

Country / Territory

  • United StatesUnited States

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Generic Insights

Blog post

The Dutch-American Friendship Treaty at 70: How “Friendly” is it in Practice?

Partners Aviva Meerschwam and Christine Sullivan, Senior Associate Tuğba Özyakup and Junior Immigration Consultant Gabriela Gonzalez examine how the Dutch-American Friendship Treaty operates in the Netherlands and the US, and what the differences mean for entrepreneurs, investors and businesses pursuing transatlantic growth.

Learn more

Awards

Fragomen Named a Top 10 Finalist for the 2026 Cartus Masters Cup

Fragomen is a Top 10 finalist for the 2026 Cartus Masters Cup, Cartus’ highest supplier honor recognizing exceptional service, collaboration, innovation and commitment to clients and relocating employees.

Learn more

Media mentions

SHRM: Proposed $103,265 H-1B Is Changing Talent Acquisition Strategy

Partner Bo Cooper discusses the proposed $103,265 H-1B fee, potential legal challenges and its broader implications for employers and high-skilled immigration.

Learn more

Media mentions

Business Insider: The Hidden Sacrifices of Chasing an H-1B Career in America

Partner Aaron Blumberg discusses how proposed changes to the H-1B program could affect workers facing layoffs and families navigating dependent visa status.

Learn more

Blog post

Permanent Residence in Germany: Why Eligible Foreign Nationals Should Consider Applying Early

Senior Associate Arta Djahanschiri outlines the principal pathways to permanent residence in Germany, the flexibility and security the status can provide and why eligible foreign nationals should consider applying early.

Learn more

Blog post

Proposed Changes to Naturalisation by Residency in Ireland: What Does it Mean for Employers and Global Mobility Programmes?

Immigration Manager Jo Crawford examines proposed changes to Ireland’s naturalisation requirements and what they could mean for employers and global mobility programmes, including talent retention, workforce planning and business mobility. 

Learn more

Fragomen news

Comment on DHS Proposed $103,265 Fee on Cap-Subject H-1B Petitions.Learn more

Awards

Fragomen Receives Three 2026 Cartus Awards

Fragomen received three recognitions at the 2026 Cartus Global Network Conference for excellence in service, sustainability leadership and global citizenship.

Learn more

Blog post

Net Migration Policy: An Explainer Comparing Australia, Canada and the UK

Partner Jack (Eui Chul) Kim, Senior Counsel Dr. Anna Boucher, UK Government Affairs Strategy Director Shuyeb Muquit and Articling Student David Mucz examine how Australia, Canada and the UK measure net migration. They compare efforts to reduce migration with the need to maintain access to international talent, and explain the potential effects on employers, labor markets and economic growth.

Learn more

Media mentions

Bloomberg Law: White House H-1B Order Puts Employer Layoffs Under Microscope

Partner K. Edward Raleigh discusses how US employers should consider displacement and conduct a risk analysis when assessing H-1B filings in light of recent policy changes.

Learn more

Blog post

The Compliance Risks of International Remote Working and Hush Trips

International remote working can offer valuable flexibility, but undisclosed “hush trips” may expose employers to immigration, social security, insurance, employment-law and tax risks that they cannot properly assess or manage.

Learn more

Blog post

The Narrowing Talent Pipeline: From International Student to Corporate America

Counsel Susan Steger examines recent policy changes and litigation affecting the pathway from F-1 study and practical training through H-1B sponsorship and permanent residence, and the considerations for US employers recruiting and retaining early-career international talent.

Learn more
Generic Insights

Blog post

The Dutch-American Friendship Treaty at 70: How “Friendly” is it in Practice?

Partners Aviva Meerschwam and Christine Sullivan, Senior Associate Tuğba Özyakup and Junior Immigration Consultant Gabriela Gonzalez examine how the Dutch-American Friendship Treaty operates in the Netherlands and the US, and what the differences mean for entrepreneurs, investors and businesses pursuing transatlantic growth.

Learn more

Awards

Fragomen Named a Top 10 Finalist for the 2026 Cartus Masters Cup

Fragomen is a Top 10 finalist for the 2026 Cartus Masters Cup, Cartus’ highest supplier honor recognizing exceptional service, collaboration, innovation and commitment to clients and relocating employees.

Learn more

Media mentions

SHRM: Proposed $103,265 H-1B Is Changing Talent Acquisition Strategy

Partner Bo Cooper discusses the proposed $103,265 H-1B fee, potential legal challenges and its broader implications for employers and high-skilled immigration.

Learn more

Media mentions

Business Insider: The Hidden Sacrifices of Chasing an H-1B Career in America

Partner Aaron Blumberg discusses how proposed changes to the H-1B program could affect workers facing layoffs and families navigating dependent visa status.

Learn more

Blog post

Permanent Residence in Germany: Why Eligible Foreign Nationals Should Consider Applying Early

Senior Associate Arta Djahanschiri outlines the principal pathways to permanent residence in Germany, the flexibility and security the status can provide and why eligible foreign nationals should consider applying early.

Learn more

Blog post

Proposed Changes to Naturalisation by Residency in Ireland: What Does it Mean for Employers and Global Mobility Programmes?

Immigration Manager Jo Crawford examines proposed changes to Ireland’s naturalisation requirements and what they could mean for employers and global mobility programmes, including talent retention, workforce planning and business mobility. 

Learn more

Fragomen news

Comment on DHS Proposed $103,265 Fee on Cap-Subject H-1B Petitions.Learn more

Awards

Fragomen Receives Three 2026 Cartus Awards

Fragomen received three recognitions at the 2026 Cartus Global Network Conference for excellence in service, sustainability leadership and global citizenship.

Learn more

Blog post

Net Migration Policy: An Explainer Comparing Australia, Canada and the UK

Partner Jack (Eui Chul) Kim, Senior Counsel Dr. Anna Boucher, UK Government Affairs Strategy Director Shuyeb Muquit and Articling Student David Mucz examine how Australia, Canada and the UK measure net migration. They compare efforts to reduce migration with the need to maintain access to international talent, and explain the potential effects on employers, labor markets and economic growth.

Learn more

Media mentions

Bloomberg Law: White House H-1B Order Puts Employer Layoffs Under Microscope

Partner K. Edward Raleigh discusses how US employers should consider displacement and conduct a risk analysis when assessing H-1B filings in light of recent policy changes.

Learn more

Blog post

The Compliance Risks of International Remote Working and Hush Trips

International remote working can offer valuable flexibility, but undisclosed “hush trips” may expose employers to immigration, social security, insurance, employment-law and tax risks that they cannot properly assess or manage.

Learn more

Blog post

The Narrowing Talent Pipeline: From International Student to Corporate America

Counsel Susan Steger examines recent policy changes and litigation affecting the pathway from F-1 study and practical training through H-1B sponsorship and permanent residence, and the considerations for US employers recruiting and retaining early-career international talent.

Learn more
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Travel and Mobility Considerations: Situation in the Middle EastNavigating Immigration Under the Second Trump AdministrationImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Travel and Mobility Considerations: Situation in the Middle East
  • Navigating Immigration Under the Second Trump Administration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Important Updates
Important Updates
September 29, 2026 | BangladeshBangladesh: New Two-Week Filing Window for Visa Extension Applications Implemented
September 30, 2026 | European UnionEuropean Union: Social Security Reforms Forthcoming
September 30, 2026 | New ZealandNew Zealand: Location Requirements for Accredited Employer Work Visa Holders Clarified
September 30, 2026 | ThailandThailand: Temporary Work Permit Introduced for Non-BOI E-Work Permit Applications
September 30, 2026 | 🌐Worldwide/Ukraine: Temporary Protection Status - Country-Specific Updates
September 29, 2026 | BangladeshBangladesh: New Two-Week Filing Window for Visa Extension Applications Implemented
September 30, 2026 | European UnionEuropean Union: Social Security Reforms Forthcoming
September 30, 2026 | New ZealandNew Zealand: Location Requirements for Accredited Employer Work Visa Holders Clarified
September 30, 2026 | ThailandThailand: Temporary Work Permit Introduced for Non-BOI E-Work Permit Applications
September 30, 2026 | 🌐Worldwide/Ukraine: Temporary Protection Status - Country-Specific Updates
September 29, 2026 | BangladeshBangladesh: New Two-Week Filing Window for Visa Extension Applications Implemented
Subscribe

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • TikTok
  • Twitter

© 2026 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.