Trump Looks To Make H-1B Workers More Expensive To Employers To Combat Foreigners Driving Down Wages

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In a bid to combat H-1B visa workers driving down U.S. wages the Trump administration is seeking to make the foreign job-takers more expensive to hire. A proposal to increase the minimum salary requirements for these workers by roughly 30 percent across multiple experience levels was introduced by the Department of Labor on March 27. It is currently open for public comment until May 26.

“If approved, this would affect not just H-1B visas but also related categories such as H-1B1, E-3 and PERM labor certification programs,” American Bazaar Online said Monday. “The Department of Labor said that the existing wage benchmarks were designed nearly two decades ago and no longer reflect present-day labor market realities in the United States. The proposed regulation, titled ‘Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States,’ argues that the current system allows companies to hire foreign workers at wages lower than what many American workers receive for comparable jobs.”

Importantly, 74.5% of H-1B workers came from India and 11.8% came from China in 2019. On Wednesday The Times of India reported that 70% of H-1B workers hailed from India in 2025. Due to coming from third world and “developing” nations, these foreign workers are content to earn a lower salary than real Americans due to it still being an improvement over what they came from. Additionally, money can be sent back to the homeland where it provides greater purchasing power than a local job.

“An entry‑level software engineer in San Francisco would need to be paid $162,000 a year to qualify for an H‑1B visa under a Trump administration proposal — almost 30% more than today. In Dallas, the minimum would jump by a similar rate to $113,000 and in New York to $132,000,” Bloomberg said Friday. “Those are the types of pay increases potentially in store for immigrants using the most popular path for white-collar workers to enter or stay in the U.S. It’s part of changes to the H-1B program that the Trump administration says will help prevent foreigners from undercutting Americans’ wages.”

While American wages are stifled from the influx of foreigners from low income countries, so is the quality of employees.

“An ex-visa officer in India shared the dirty secret: 70-90% of Indian applicants gamed the system with fake credentials. Then, Indian workers hire their own while axing American jobs. Once they’re in, they stay, bringing more, while American talent gets left out,” Senator Eric Schmitt said.

Schmitt explained how Americans are competing against a global supply of these fraudulently-credentialed individuals.

“While Washington pats themselves on the back, American workers are told to ‘upskill’ or get replaced by H-1B hires. The entire system is designed to let companies take advantage of the law. While American grads and workers pay the price,” Schmitt said.

The plan would cost big corporations at least $18 billion over the first year, according to an analysis by immigration data company Lawfully and Threshold. This additional cost could theoretically increase the rate of replacement of humans with AI, although that trend remains even without increasing wages.


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