The White House has unveiled a new immigration plan based in part on the Australian model, but the press conference descended into acrimony as senior White House adviser Stephen Miller traded barbs with a CNN reporter.

The bill, called the Raise Act, would overhaul the rules for legal immigration, focusing on skilled immigrants and cutting overall numbers by 50 per cent over the next 10 years.

President Donald Trump introduced the plan alongside two Republican senators in the White House, with officials saying the plan was based in part on the Australian and Canadian immigration models.

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"The competitive application process will favour applicants who can speak English, financially support themselves and their families, and demonstrate skills that will contribute to our economy," Mr Trump said.

"The Raise Act prevents new migrants and new immigrants from collecting welfare, and protects US workers from being displaced".

The bill faces a difficult passage through Congress, with Democrat Senate Minority Leader Chuck Schumer saying the proposal "doesn't make much sense".

When the ABC asked Mr Miller which parts of the Australian policy were being adopted, Mr Miller replied: "We looked at the Australian system, the Canadian system, we took things we liked, we added things that made sense for America where we are as a country right now".

"One of the things that I think is most compelling about the Australian system is the efforts to make sure that immigrants are self-sufficient, and make sure they're able to pay for their own health care and things of that nature, and that's certainly one of the things we took from that.

"Obviously the points-based system that Canada has, has a lot to recommend it and actually we took that and we added things that were all new to it and were released today and that make sure we have a highly competitive application process."

Donald Trump has praised Australia's health care and immigration systems. ( AP: Pablo Martinez Monsivais )

Miller and Acosta launch into heated debate

While taking questions from the press about the new bill, Mr Miller found himself in a verbal battle with CNN reporter Jim Acosta, who said restricting immigration to people who could already speak English was an unfair requirement.

Mr Miller took particular umbrage to Acosta's suggestion that the bill may effectively restrict access to "people from Great Britain and Australia".

"Jim, I am shocked at your statement," Mr Miller said.

"That you think that only people from Great Britain and Australia would know English, it reveals your cosmopolitan bias to a shocking degree.

Acosta then told Mr Miller the plan "sounds like you're trying to engineer a racial and ethnic flow of people into this country", which provoked an equally passionate response.

"Jim, that is one of the most outrageous, insulting, ignorant and foolish things you've ever said," Mr Miller said. "The notion that you think this is a racist bill is so wrong and so insulting."