H1B Weighted Selection Rule Under OMB Review

Current Status of H1B Weighted Selection Rule

The proposed H1B weighted selection rule was submitted to the Office of Management and Budget (OMB) on July 17, 2025, for mandatory interagency review. This wage-based priority system could fundamentally reshape H1B selection, but no official parameters have been announced by USCIS.

OMB Review Process Explained

The OMB review process is a mandatory step for all significant federal regulations:

• Standard Review Period: Up to 90 days from submission date
• Interagency Coordination: Input from multiple federal agencies
• Economic Impact Assessment: Cost-benefit analysis validation
• Legal Review: Compliance with federal rulemaking requirements
• Policy Alignment: Consistency with administration priorities

Detailed Implementation Timeline

Based on typical federal rulemaking processes, here's the projected timeline:

What the Proposed Rule Could Include

Wage-Based Priority Framework

Based on analysis of the withdrawn 2021 rule, the system would likely include:

• DOL OES Wage Levels: Level I-IV based on occupation and location
• Priority Order: Level IV (highest) to Level I (lowest)
• Geographic Variation: Wage thresholds vary by metropolitan area
• Occupation-Specific: Different thresholds for each SOC code

Estimated Selection Rate Impact

Educational modeling suggests potential outcomes:

• Level IV Positions: ~85% estimated selection rate
• Level III Positions: ~65% estimated selection rate
• Level II Positions: ~35% estimated selection rate
• Level I Positions: ~5% estimated selection rate (approaching zero)

Potential Roadblocks and Delays

OMB Review Complications

Several factors could delay or complicate the review:

• Economic Impact Concerns: Significant effects on entry-level hiring
• Industry Pushback: Opposition from H1B-dependent employers
• Legal Challenges: Potential litigation over methodology
• Implementation Complexity: Technical challenges in wage determination

Political and Administrative Factors

External factors that could influence the timeline:

• Election Cycle: 2024 election outcomes may affect priorities
• Congressional Action: Potential legislative intervention
• Court Challenges: Lawsuits could delay implementation
• Industry Coalition: Organized opposition from employer groups

What Applicants Should Do Now

Immediate Actions

While waiting for official parameters, consider these strategies:

• Focus on Current System: The beneficiary-centric lottery remains active
• Salary Positioning: Negotiate competitive wages for future advantage
• Education Investment: US advanced degrees provide immediate benefits
• Geographic Strategy: Consider locations with favorable wage dynamics

Long-term Planning

Prepare for potential implementation:

• Skill Development: Focus on high-demand, high-wage specializations
• Career Progression: Target positions that typically pay higher wages
• Alternative Strategies: Develop backup immigration plans
• Industry Analysis: Understand wage dynamics in your field