H-1B Visa Updates: Two Major Changes That Benefit MBA Graduates & Applicants

Last April, U.S. Citizenship and Immigration Services (USCIS) revealed a staggering statistic: over three-quarters of a million registrations had been submitted for just 85,000 available H-1B visas. This marked yet another clear indication that the H-1B program was facing serious challenges. Despite being designed to streamline applications, the registration system had become overwhelmed by duplicate submissions.

‍Of the 758,000 total registrations, more than 400,000 were submitted on behalf of individuals who already had multiple entries—representing a dramatic 140% increase from the previous year alone. The problem was clear: the combination of an uncomplicated application process coupled with a nominal $10 filing fee had created a system ripe for exploitation. Many were simply gaming the system to enhance their chances in what has commonly become known as the "H-1B lottery."

In response to these systemic challenges, DHS has instituted transformational changes to the H-1B program that go far beyond simple administrative updates. These reforms address fundamental issues that have plagued the system for years:

What's Changing and Why It Matters

• Modernization for Today's Economy: The outdated H-1B framework, designed decades ago, is being comprehensively updated to reflect the realities of our dynamic, technology-driven economy and global talent marketplace.

• Enhanced Flexibility and Opportunity: Both employers and international workers gain significant new options under these changes, creating pathways that better accommodate the fluid nature of modern careers and business needs.

• Strengthened Protections Against Exploitation: The reforms specifically target and eliminate loopholes that previously allowed system manipulation, ensuring that genuine talent—not gaming strategies—determines who secures these coveted visas.

These changes are especially significant for international students, who often found themselves at a disadvantage in the previous system despite their valuable U.S. education and specialized skills. Let's explore the key changes and their implications:

Change 1: Beneficiary-Centric H-1B Selection Process

The Department of Homeland Security (DHS) has implemented a new beneficiary-centric selection process for H-1B registrations, effective from January 17, 2025.

Key Updates:

• Each unique beneficiary is now entered into the selection pool only once, regardless of how many employers submit registrations on their behalf.
• This fundamental change creates a fairer and more equitable system for all potential beneficiaries.
• The approach significantly reduces the likelihood of system manipulation through multiple registrations by related entities.

This change addresses the core issue of lottery manipulation that has plagued the system in recent years. By ensuring each candidate has an equal chance regardless of how many employers file on their behalf, DHS has leveled the playing field for international students who typically have fewer employer connections than more established professionals.

Change 2: Increased H-1B Registration and Filing Fees

While the electronic registration system remains, the H-1B visa fees have increased, impacting both employers and applicants.

Fee Increases:

• H-1B registration fee: Increased from $10 to $215 per entry.
  
• Form I-129 filing fee: Increased from $460 to $780 for H-1B petitions.
  
• New $600 “Asylum Program Fee” added for Form I-129 and Form I-140 petitions.

The substantial increase in registration fees serves two purposes: it helps fund the administration of the visa program and discourages the filing of multiple speculative registrations that previously overwhelmed the system.

How These Changes Benefit MBA Graduates

These changes, along with other updates to the H-1B program, offer several advantages for MBA students:

• The H-1B Modernization Rule aims to expand the pool of specialized and high-skilled foreign workers and international graduates that U.S. employers can hire.
• There's greater flexibility regarding the degrees that make graduates eligible for an H-1B visa, potentially benefiting those with interdisciplinary studies.
• The "cap-gap" extension for F-1 visa holders has been extended to April 1, giving students more time to transition from student to H-1B status.

For international MBA students completing their education in the United States, these changes translate to more equitable opportunities to secure employment through the H-1B program. The extended cap-gap period is particularly valuable, offering students additional time to navigate the transition from student to professional status.

Additional H-1B Rule Changes You Should Know

Several other significant changes to the H-1B program will impact applicants and employers:

• The new rules take effect on January 17, 2025, with no grace period for the revised Form I-129.
• The specialty occupation definition has been updated, requiring a direct relationship between the degree field and job duties.
• The itinerary requirement for H-1B petitions has been eliminated, reducing administrative burdens for employers.

Need Help Navigating the H-1B Process?

If you’re an international Applicant planning for your MBA, Master’s or Ph.D., staying informed is crucial. Speak to an MBA Coach today to understand the full impact of these changes on your career plans.