The US Department of Homeland Security (DHS) has overhauled the H-1B work visa selection process, replacing the long-standing random lottery with a wage-weighted system that prioritises higher-paid and more highly skilled foreign workers. The Trump administration says the change is intended to protect American wages and jobs.
The rule, released late Tuesday, will take effect from February 27, 2026—before electronic registrations open for the next H-1B cap cycle in March. The annual quota remains 85,000 visas, including the master’s cap.
Until now, when applications exceeded the quota, registrations were selected through a random lottery, giving all candidates equal odds. Under the new framework, H-1B visas will no longer be allocated purely by chance. Instead, registrations will be weighted based on wage levels set by the US Department of Labor (DOL), increasing the likelihood of selection for applicants offered higher salaries.
This policy shift, combined with the proposed $100,000 entry fee for new H-1B applications and plans to raise wage thresholds, is expected to make overseas hiring more difficult for US employers. While this could dampen prospects for many foreign professionals seeking to work in the US, it may also accelerate offshoring, potentially benefiting countries such as India through the expansion of global capability centres.
According to the US Citizenship and Immigration Services (USCIS), the existing lottery system had been misused. “The random selection process was exploited by employers seeking to import lower-paid foreign labour at the expense of American workers,” said USCIS spokesperson Matthew Tragesser. He added that the new system better reflects congressional intent and encourages recruitment of higher-skilled, higher-paid talent.
The final rule closely mirrors draft regulations released in September. Under the “weighted lottery” model, candidates offered a Level IV wage—the highest tier—will be entered into the selection pool four times, Level III candidates three times, Level II twice, and Level I only once. While all applicants currently face equal odds of selection (about 29.6%), the new system sharply skews chances toward those at higher wage levels.
The National Foundation for American Policy estimates that selection probability for Level IV candidates would rise by 107%, while chances for Level I candidates would drop by nearly 48%. This effectively favours mid-career and senior professionals and creates a higher barrier for entry-level workers, including many recent international graduates from US universities.
The impact on Indian applicants could be significant. In the fiscal year ending September 2024, USCIS approved about 1.41 lakh H-1B petitions, of which more than 57% were for Indian beneficiaries—well above the annual cap due to buffers for withdrawals and rejections.
USCIS said the reform is part of a broader push by former president Donald Trump to strengthen the integrity of the H-1B programme. “We will continue to demand more from both employers and foreign workers so as not to undercut American workers and to put America first,” Tragesser said.
