US SMARTER Act seeks to replace H-1B visa with merit-based system
Synopsis
Key Takeaways
A Republican congressman has proposed overhauling America's H-1B visa selection framework, introducing a merit-based alternative that would prioritise highly skilled, better-compensated foreign workers — a development with significant implications for Indian technology professionals who rely heavily on the programme. The bill, introduced in Washington, remains at the committee stage and has not become law.
What the SMARTER Act Proposes
Congressman David Schweikert of Arizona, chairman of the Joint Economic Committee, unveiled the Securing Migration, Addressing Reform, and Talent Enhancement and Retention (SMARTER) Act — formally listed as H.R. 10460 — in an 19 October announcement. The legislation was originally introduced in the House of Representatives on 16 September and referred to the Judiciary Committee.
Under the proposal, the current lottery-based H-1B selection mechanism would be scrapped in favour of a framework that assesses applicants on economic contribution, qualifications, and labour-market demand. An initial numerical cap of 85,000 — mirroring the current H-1B ceiling — would be retained, with subsequent adjustments tied to broader economic conditions.
A New Board to Govern Skilled Migration
The bill proposes establishing a five-member Skilled Migration and Recruitment of Talent Board to determine annual immigration limits and allocate employment visas across industries. The board would weigh factors including labour shortages, unemployment levels, wages, productivity, and overall economic growth when setting admission numbers.
A points-based system for employment-based permanent immigration is also proposed, scoring applicants on age, education, English proficiency, salary, and exceptional achievements. Applicants aged 26 to 30 would receive the highest age-related scores, while higher educational qualifications and salaries significantly above the median household income in the applicant's state would further boost their points.
Key Provisions Relevant to Indian Nationals
One provision that could directly affect Indian nationals is the proposed removal of existing country-specific numerical limits on employment-based immigration. Indian applicants currently face some of the world's longest green-card waiting times — in some categories, backlogs stretch to decades — because per-country caps mean high-demand nationalities exhaust their share quickly. However, experts caution that actual waiting times under the new system would depend on the overall visa ceilings and how the points-based selection mechanism operates in practice.
The legislation also includes transitional provisions for certain pending immigration applications and would grant some long-delayed employment-based applicants greater flexibility to change employers — a practical relief for many Indian professionals already in the queue.
Restrictions on Family and Diversity Immigration
The bill would significantly reshape family-sponsored immigration, limiting it primarily to spouses and minor children and eliminating several existing preference categories. The Diversity Visa Programme, which currently allocates up to 55,000 visas annually through a lottery to nationals of historically low-immigration countries, would be ended entirely.
An additional provision would introduce a 'gold card' immigration programme, allowing qualifying applicants to obtain immigrant visas through substantial financial payments. The bill also proposes directing the Department of Homeland Security to deploy artificial intelligence to identify individuals who overstay their authorised visa periods.
Economic Projections and Political Context
Republican staff of the Joint Economic Committee projected that the proposal could reduce federal expenditure by approximately $335 billion and boost US gross domestic product by at least $549 billion over a decade. Notably, these are figures advanced by the bill's own proponents and have not been independently verified.
Schweikert argued that immigration reform must address America's ageing population and growing demand for skilled workers while protecting domestic employment. 'If we are serious about tackling our debt, growing our economy, and safeguarding our earned federal benefits, we must cultivate a workforce that continues to compete globally at the highest level,' he said.
The H-1B programme has for decades been a primary entry point for Indian technology professionals into the United States, and employment-based green-card backlogs have been a chronic grievance for Indian applicants. Whether this bill advances through Congress — where immigration legislation has repeatedly stalled — remains to be seen, as it currently sits in the Judiciary Committee without a scheduled hearing.