Trump Administration Proposes Major H-1B Wage Increases for Foreign Workers

Published on May 8, 2026

The tech industry has long relied on H-1B visas to fill roles, particularly in software engineering. Entry-level positions in cities like San Francisco typically required salaries around $125,000 a year. This system helped companies access a global talent pool to address the ongoing skills shortage.

A new proposal from the Trump administration threatens to disrupt this balance. It suggests raising the minimum salary requirements significantly. In San Francisco, the salary for an entry-level software engineer would surge to $162,000, a nearly 30% increase.

The implications of this change reverberate across the tech landscape. Employers in other major cities, including Dallas and New York, would also face steep new salary thresholds. Reactions from business leaders are mixed, with some expressing concern over the financial burden these changes could impose.

The potential consequences are significant. Heightened salary expectations could deter employers from hiring H-1B workers, limiting the available talent pool. This shift may exacerbate existing workforce shortages, challenging the growth potential of the tech sector in the United States.

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