The United States is preparing to reshape its visa and residency system. Commerce Secretary Howard Lutnick confirmed that the Trump administration plans to overhaul the H-1B programme and green card process, replacing the current lottery model with a wage-based and merit-driven approach.
“I’m involved in changing the H1B visa programme. We’re going to change that programme because that’s terrible right. We’re going to change the green card,” Lutnick told Fox News.
While addressing the media at the White House on Tuesday (local time), Trump emphasised his belief in the importance of attracting skilled individuals to the country, citing the H-1B visa program as a key tool in facilitating this.
He further argued that allowing "quality people" to come into the US further helps in bolstering the economy by supporting various industries.
“You got to get the best people...We have to have the quality people coming in... By doing that, we’re expanding businesses, and that takes care of everybody... But what I really do feel is that we have to let really competent people, great people, come into our country, and we do that through the H-1B,” Trump told reporters at the White House.
Criticism of current system
Lutnick has been vocal about what he sees as flaws in the current system. “The current H-1B visa system is a scam that lets foreign workers fill American job opportunities. Hiring American workers should be the priority of all great American businesses,” he said in an interview with Fox News host Laura Ingraham.
He also criticised the income levels of existing green card holders, noting: “We give green cards, the average American makes $75,000 a year and the average green card recipient $66,000 a year. Why are we doing that? It’s like picking the bottom core.”
H1B Visa: Wage-based visas on the table
A draft rule approved this month by the US Office of Information and Regulatory Affairs has cleared the way for visas to be issued based on salaries. This would prioritise higher-earning applicants, moving away from the random lottery system.
According to Lutnick, “That’s why Donald Trump is going to change it – that’s where the Gold Card is coming, and with that we’re going to start picking the best people, and it’s time for that.”
The Gold Card proposal
At the heart of the reforms is a proposed “Gold Card” programme. It would grant permanent residency to foreigners willing to invest at least $5 million in the United States.
Lutnick claimed the demand is already high. “That’s the gold card that’s coming. And that’s where we’re gonna start picking the best people to come into this country. It’s time for that to change,” he said. He added that as many as 250,000 people are waiting, potentially bringing in $1.25 trillion in investment if the programme is rolled out.
Trump’s mixed history with H-1B visas
US President Trump himself has struck a mixed tone. In January 2025, he said the country still needs talent from abroad. This contrasts with his earlier position. During his first term, the administration placed restrictions on H-1B visas, citing “abuse” and “economic strain.” In 2016, he described the system as a way for companies to replace American workers with cheaper foreign labour.
New policy's impact on India
The changes carry particular weight for Indian professionals, who consistently dominate H-1B allocations. In fiscal year 2023, more than 72 percent of approved H-1B petitions went to Indian nationals, compared to 11.7 percent for China.
Any suspension or curtailing of the programme could see American companies turn to outsourcing or remote hiring in India instead of filling roles with US workers. Online debates following the announcements have already highlighted this risk.
While the proposals are still in early stages, the combination of wage-linked visas and an investment-based Gold Card marks a clear direction in the Trump administration’s immigration policy. The focus is firmly on attracting wealth and high skill, even as critics warn of unintended consequences for industries that rely heavily on foreign talent.
“I’m involved in changing the H1B visa programme. We’re going to change that programme because that’s terrible right. We’re going to change the green card,” Lutnick told Fox News.
While addressing the media at the White House on Tuesday (local time), Trump emphasised his belief in the importance of attracting skilled individuals to the country, citing the H-1B visa program as a key tool in facilitating this.
He further argued that allowing "quality people" to come into the US further helps in bolstering the economy by supporting various industries.
“You got to get the best people...We have to have the quality people coming in... By doing that, we’re expanding businesses, and that takes care of everybody... But what I really do feel is that we have to let really competent people, great people, come into our country, and we do that through the H-1B,” Trump told reporters at the White House.
Criticism of current system
Lutnick has been vocal about what he sees as flaws in the current system. “The current H-1B visa system is a scam that lets foreign workers fill American job opportunities. Hiring American workers should be the priority of all great American businesses,” he said in an interview with Fox News host Laura Ingraham.
He also criticised the income levels of existing green card holders, noting: “We give green cards, the average American makes $75,000 a year and the average green card recipient $66,000 a year. Why are we doing that? It’s like picking the bottom core.”
H1B Visa: Wage-based visas on the table
A draft rule approved this month by the US Office of Information and Regulatory Affairs has cleared the way for visas to be issued based on salaries. This would prioritise higher-earning applicants, moving away from the random lottery system.
According to Lutnick, “That’s why Donald Trump is going to change it – that’s where the Gold Card is coming, and with that we’re going to start picking the best people, and it’s time for that.”
The Gold Card proposal
At the heart of the reforms is a proposed “Gold Card” programme. It would grant permanent residency to foreigners willing to invest at least $5 million in the United States.
Lutnick claimed the demand is already high. “That’s the gold card that’s coming. And that’s where we’re gonna start picking the best people to come into this country. It’s time for that to change,” he said. He added that as many as 250,000 people are waiting, potentially bringing in $1.25 trillion in investment if the programme is rolled out.
Trump’s mixed history with H-1B visas
US President Trump himself has struck a mixed tone. In January 2025, he said the country still needs talent from abroad. This contrasts with his earlier position. During his first term, the administration placed restrictions on H-1B visas, citing “abuse” and “economic strain.” In 2016, he described the system as a way for companies to replace American workers with cheaper foreign labour.
New policy's impact on India
The changes carry particular weight for Indian professionals, who consistently dominate H-1B allocations. In fiscal year 2023, more than 72 percent of approved H-1B petitions went to Indian nationals, compared to 11.7 percent for China.
Any suspension or curtailing of the programme could see American companies turn to outsourcing or remote hiring in India instead of filling roles with US workers. Online debates following the announcements have already highlighted this risk.
While the proposals are still in early stages, the combination of wage-linked visas and an investment-based Gold Card marks a clear direction in the Trump administration’s immigration policy. The focus is firmly on attracting wealth and high skill, even as critics warn of unintended consequences for industries that rely heavily on foreign talent.
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