Washington: A new US rule, which changes how H-1B work visas are chosen, could bring strong economic gains over the next 10 years, according to a government watchdog, but may be taking effect faster than the law allows.
The Government Accountability Office (GAO) said the Department of Homeland Security’s new H-1B selection rule is expected to deliver economic benefits of more than $20 billion between 2026 and 2035. The rule is estimated to cost about $303 million to implement over the same period.
At the same time, the GAO flagged a timing issue under US law.
“The rule has a stated effective date of February 27, 2026,” the GAO said, noting that this is “less than 60 days from the date of receipt by Congress.”
Under the Congressional Review Act, major federal rules generally must wait at least 60 days after publication or receipt by Congress before taking effect, the GAO noted in its report.
The GAO noted the rule was received on December 29, 2025, and published in the Federal Register the same day. The House of Representatives received it on December 29, 2025, while the Senate received it on January 5, 2026.
The watchdog sent its report this week to the leadership of the Senate and House Judiciary Committees, which oversee immigration policy and the Department of Homeland Security.
The rule titled “Weighted Selection Process for Registrants and Petitioners Seeking To File Cap-Subject H-1B Petitions” changes how the US Citizenship and Immigration Services selects H-1B registrations for visas that are subject to an annual cap set by Congress.
According to the DHS, the rule introduces a weighted selection system. The department said the new process will generally favour higher-skilled and higher-paid foreign workers.
The DHS also stated the system will continue allowing employers to hire H-1B workers at all wage levels. The goal, the DHS said, is to better align the program with congressional intent.
The GAO reviewed the rule under federal law that requires it to assess whether agencies have followed required procedural steps when issuing major regulations.
As part of that review, the GAO examined the DHS’s cost-benefit analysis. DHS estimated that total benefits from the rule between fiscal years 2026 and 2035 will be about $20.08 billion. It estimated net benefits to the public during that period at nearly $19.78 billion.
The DHS also estimated total transfers of about $34.34 billion over the 10-year period.
The GAO said that the DHS determined that the rule would have a significant economic impact on a substantial number of small businesses. As a result, DHS prepared a final regulatory flexibility analysis.
The department also concluded that the rule does not include a federal mandate under the Unfunded Mandates Reform Act and therefore did not prepare a separate statement under that law.
According to the GAO, the DHS first published a proposed version of the rule in September 2025. The department said it received comments from individuals, including US workers, as well as companies, law firms, professional organisations, advocacy groups, nonprofit organisations, universities, healthcare providers, and trade and business associations.
The DHS said it reviewed and responded to those comments in the final rule.
The H-1B visa program is the main route for skilled foreign professionals to work in the United States and is heavily used by Indian nationals, especially in technology, engineering, and healthcare.
Changes to how these visas are selected are closely watched in India and among Indian professionals working or seeking jobs in the US.
(IANS)
