US Watchdog Flags Legal Timing Issue For New H-1B Visa Rule Promising Major Economic Gains

A newly issued US rule altering the selection process for H-1B work visas is projected to generate substantial economic benefits over the next decade, according to the Government Accountability Office (GAO).

The Department of Homeland Security (DHS) expects its revised policy, which introduces a weighted selection system, to deliver more than $20 billion in economic gains between 2026 and 2035, with implementation costs estimated at approximately $303 million.

Despite its potential advantages, the GAO has raised concerns about the rule’s effective date.

The regulation, scheduled to take effect on 27 February 2026, may come into force sooner than allowed under the Congressional Review Act, which generally requires a 60-day waiting period following receipt by Congress.

The House of Representatives received the rule on 29 December 2025, and the Senate received it on 5 January 2026, the GAO noted.

Weighted Selection and Skilled Workers

The rule, formally titled ‘Weighted Selection Process for Registrants and Petitioners Seeking To File Cap-Subject H-1B Petitions’, prioritises higher-skilled and higher-paid foreign professionals while still allowing employers to hire at all wage levels.

DHS stated that the change aims to better align the programme with congressional intent and to enhance the efficiency of the H-1B visa system.

DHS first proposed the rule in September 2025 and received feedback from a broad range of stakeholders, including companies, universities, healthcare providers, advocacy groups, and individuals.

The department reviewed these comments and incorporated responses into the final version. The GAO assessed DHS’s cost-benefit analysis, which projected net public benefits of nearly $19.78 billion and total transfers of $34.34 billion over ten years.

The department also determined the rule would significantly impact many small businesses, but it does not trigger federal mandates under the Unfunded Mandates Reform Act.

The H-1B visa programme remains the primary route for skilled foreign professionals to work in the United States and is particularly significant for Indian nationals in the technology, engineering, and healthcare sectors.

Indian professionals and companies are therefore closely monitoring changes to visa selection methods.

Also Read: Trump Questions European Commitment On NATO & Ukraine Costs