Key Points

The DHS proposal seeks to scrap the existing lottery system and implement "a weighted selection process that would generally favour the allocation of H-1B visas to higher-skilled and higher-paid aliens, while maintaining the opportunity for employers to secure H-1B workers at all wage levels".

The initiative will be opened for a 30-day public comment period.

The H-1B programme, capped at 85,000 new visas annually, allowed US companies to hire skilled foreign workers in fields like technology and engineering through a random lottery system.

Last week, Trump signed a proclamation to crack down on H-1B visas, announcing a $100,000 fee for each new application.

The proclamation caused immense confusion over the weekend as it seemed to suggest that it would impact the current H-1B visa holders who may face hurdles in returning to the United States.

The White House issued a clarification to IANS on Saturday, saying that this is a “one-time fee” that applies only to new visas and not renewals or current visa holders.

"This is a one-time fee that applies only to the petition. It ONLY applies to new visas, not renewals or current visa holders. It will first apply in the upcoming lottery cycle," a White House official told IANS.

A White House spokesperson also clarified to IANS that the policy would "discourage companies from spamming the system".

"President Trump promised to put American workers first, and this common-sense action does just that by discouraging companies from spamming the system and driving down wages. It also gives certainty to American businesses who actually want to bring high-skilled workers to our great country but have been trampled on by abuses of the system," White House spokeswoman Taylor Rogers said.

Signing the proclamation at the White House on Friday, Trump said the "incentive is to hire American workers".

The new proposal was announced as two senior Ministers – External Affairs Minister S Jaishankar and Commerce and Industry Minister Piyush Goyal met Trump administration officials in New York on Monday.

After his meeting with Jaishankar, US Secretary of State Marco Rubio said that India is of "critical" value to his country and welcomed its ongoing interaction in trade.

Jaishankar posted on X: "Our conversation covered a range of bilateral and international issues of current concern. Agreed on the importance of sustained engagement to progress on priority areas".

Commerce and Industry Minister Goyal also met US Trade Representative Jamieson Greer on Monday in New York to negotiate the first tranche of a trade agreement between the two sides.

Sources told IANS that the meeting focused on addressing key sticking points, and both sides remain hopeful of reaching an interim understanding soon.

- IANS