Trump Administration Proposes Major H-1B Visa Salary Hike

The Trump administration is proposing a significant increase in the minimum salary for foreign workers on H-1B visas, requiring employers to pay entry-level software engineers $162,000 annually in Silicon Valley, $132,000 in New York, and $113,000 in Dallas, Bloomberg reported, citing analyses by immigration data firms Lawfully and Threshold. The rule, aimed at preventing the displacement of American workers, would apply to H-1B, H-1B1, and E-3 visa programs and is intended to ensure foreign hires possess specialized skills commensurate with higher wages.

Employers would face substantial new costs, with an estimated $18 billion in additional expenses in the first year and up to $43 billion annually within three years as visas are renewed at the higher wage levels. Companies must currently obtain a Labor Condition Application from the Department of Labor, certifying they will pay the higher of the actual or prevailing wage for the role and location.

The Labor Department issued a Notice of Proposed Rulemaking (NPRM) in March, updating prevailing wage requirements used in visa and green card processes, including EB-2 and EB-3 categories. The rule remains under review and requires final approval before implementation.

The Department of Labor must finalize the rule following public comment and administrative procedures. The court will resume hearing on Tuesday.