Trump H1B Reform 2025: Wage‑Based Selection and Citizenship Test Overhaul Explained

Executive Summary

• A recent interview with The New York Times confirms the Trump administration is moving to replace the H‑1B lottery with a wage-based selection system and raise standards for the U.S. citizenship test.

• The proposed H‑1B rule RIN 1615‑AD01, sent to the OMB on July 17, 2025, would prioritize applications by offered salary tiers, favoring higher-paid roles (OES Level IV → I).

• USCIS Director Joseph Edlow also announced plans to reinstate a stricter civics test—requiring 12 correct answers out of 20, compared to the current 6/10 threshold.

Background: Understanding the H‑1B Visa

• The H‑1B program issues 85,000 visas annually (65k cap + 20k master’s exemption), currently distributed by lottery if demand exceeds supply.
• It targets specialty occupations; holders may stay up to six years under dual intent provisions.

Proposed Wage-Based Selection Mechanism

• DHS/USCIS plans to weight applications by wage levels: Level IV first, descending to Level I. If demand in a tier exceeds slots, a secondary lottery applies within that tier.

• This replaces random selection with merit-based priority tied to compensation.

Citizenship Test Reform Roll-Out

• Edlow cited the current test as too easy to memorize, promising to restore the previous standard: 12 correct answers from 20 questions.

• Seniors aged 65+ with 20+ years green card may retain access to the simplified version.

Stakeholder Impact Breakdown

Employers & High-Paying Jobs

• Higher salary offerings become strategic for improving selection odds.
• Companies may adjust compensation to align with OES Level III–IV tiers.

International Students & Entry-Level Workers

• Lower wage roles at OES Levels I–II may face non-selection, limiting entry into the H‑1B program.

🇺🇸 U.S. Workforce Perspectives

• Domestic professionals largely support reforms to curb wage suppression by cheaper foreign labor.

• Critics argue it may undermine access to skilled international graduates and harm diversity in talent pools.

Timeline & Legal Outlook

• July 17, 2025: DHS rule sent to OMB (RIN 1615‑AD01).
• After public comment, the rule may be finalized and operational by March 2026, ahead of the FY 2027 registration period.
• Legal challenges are likely, especially concerning equity for entry-level applicants and procedural rulemaking consistency.

Broader Policy & Legislative Context

• These reforms align with Trump’s “Executive Order 14160” (January 20, 2025), challenging birthright citizenship and tightening immigration standards; currently enjoined by courts, according to Wikipedia.
• They reflect ongoing policy efforts like the RAISE Act and Fairness for High‑Skilled Immigrants Act, emphasizing wage, skill, and national interest in visa allocation, American Council on Education+15.