The Trump administration's proposal to replace the traditional H-1B visa lottery with a wage-weighted selection system has drawn significant backlash from industry groups, most notably Nasscom, which represents the IT sector. The proposal, which was introduced shortly after a substantial fee increase for new H-1B applicants, is seen as problematic on several fronts. Critics assert that shifting to a wage-weighted system could lead to operational disruptions, economic inefficiencies, and adverse effects on early-career professionals and small businesses. Nasscom has flagged issues concerning geographic and sector disparities, noting that a worker earning a Level 2 wage in New York could potentially rank higher than a Level 4 wage earner from Iowa under the new framework. This could introduce inconsistencies and unfair advantages based on location rather than skill level. The proposed revision aims to prioritize skilled professionals commanding higher salaries and those with extensive experience. Under the new model, visa registrations would be categorized according to wage brackets established by the Occupational Employment and Wage Statistics (OEWS). Each application would be classified from Level I to IV, with higher tiers enjoying increased chances in the selection pool. For instance, a Level IV wage earner would receive four entries, while Level I would have only one. This new selection strategy has sparked fears of potential manipulation, where firms might inflate salaries to gain an edge in the visa lottery system. The U.S. Chamber of Commerce has echoed these concerns, stating that the assumption correlating higher wages with economic benefits could be misleading, as companies might relocate jobs overseas if they cannot access the necessary talent pool. Rajesh Nambiar, the president of Nasscom, articulated that altering the lottery after two decades would disrupt established hiring practices, complicating recruitment cycles and project planning for many businesses. Most notably, 76% of H-1B petitioners are small business owners who could be significantly affected by the proposed changes, leading to cost increases that might challenge their operational capabilities. Additionally, Nasscom highlighted that while salary levels are important, equity-based compensation such as restricted stock units could distort the overall representation of skilled labor costs under this system. The organization has called for legislative approval from Congress for such modifications, instead of administrative decisions that could have far-reaching economic implications. Moreover, Nasscom emphasized that while similar immigration models exist in countries like Canada and Australia, they operate under different comprehensive frameworks taking multiple factors into account, rather than focusing solely on wages. As a key player in the U.S. economy, contributing more than $198 billion to the GDP while employing over 1.6 million skilled individuals, Nasscom believes a more considered approach is vital. Therefore, they have recommended delaying the implementation of the new lottery system, which is set for March 2027, pushing for further assessment until FY28 to ensure a fair and effective migration policy.