Big Change for H-1B Applicants: US Ends Lottery, Focuses on Higher Wages and Skills

The Donald Trump administration is overhauling the H-1B work visa selection process, shifting from a random lottery to a wage and skill-based system that, according to the US government, prioritises higher-paid and higher-skilled foreign professionals while aiming to protect American workers’ pay scales and job prospects.

The US Department of Homeland Security (DHS) said it is “replacing the lottery system with wage and skill-based selection.” Officials explained that, instead of chance, applications offering higher salaries and stronger qualifications will receive preference, which the department argues will better support the intent of the H-1B programme set by Congress.

H-1B visa selection process to prioritise higher wages and skills

Announcing the final rule, DHS stated it would now focus on “the allocation of visas to higher-skilled and higher-paid” foreign candidates. In a formal statement, the department added, “The new rule replaces the random lottery for selecting visa recipients with a process that gives greater weight to those with higher skills,” framing the move as a measure to safeguard domestic labour standards.

The revised H-1B visa selection framework is scheduled to take effect on February 27, 2026, and will govern the FY 2027 H-1B cap registration season. The statutory cap remains unchanged, with 65,000 visas available each year, plus 20,000 additional slots reserved for individuals holding advanced degrees from US institutions.

H-1B visa selection process category	Annual cap
Standard H-1B visas	65,000
US advanced degree exemption	20,000

H-1B visa selection process rule targets alleged system abuse

DHS said the existing “random selection process” had long attracted criticism “for allowing unscrupulous employers to exploit it”. According to the department, mass submissions by some companies led to “flooding” of the system “with lower-skilled foreign workers paid at low wages”, which officials described as harmful to the domestic workforce and overall wage levels.

To respond to those concerns, the DHS statement noted, “To address these concerns, the final rule will implement a weighted selection process that will increase the probability that H-1B visas are allocated to higher-skilled and higher-paid aliens while maintaining the opportunity for employers to secure H-1B workers at all wage levels,” indicating that lower wage levels are not barred but will face reduced selection odds.

US Citizenship and Immigration Services spokesman Matthew Tragesser said the earlier approach to H-1B registrations had been “exploited” and “abused” by some US employers, who, according to Tragesser, sought to “import foreign workers at lower wages than they would pay American workers. “The new weighted selection will better serve Congress' intent for the H-1B program and strengthen America's competitiveness by incentivizing American employers to petition for higher-paid, higher-skilled foreign workers,” the spokesperson added, calling it part of broader efforts “to help American businesses without allowing the abuse that was harming American workers.”

DHS said the regulation aligns with other policy shifts under the Trump administration, including an increase in the H-1B visa fee to $100,000 per visa as a condition of eligibility, presenting the set of measures as aimed at tightening programme oversight while still allowing companies that need specialised skills to hire foreign professionals under more selective terms.

FAQs

What is the main change to the H-1B visa selection process announced by DHS?

The process shifts from a random lottery to a wage and skill-based system, prioritizing higher-paid and higher-skilled foreign professionals.

When will the revised H-1B visa selection framework take effect and apply to which cap season?

The new rules take effect on February 27, 2026, and will apply to the FY 2027 H-1B cap registration season.

What are the annual H-1B visa caps under the new system?

The standard H-1B visas are 65,000 per year, plus 20,000 additional slots for the US advanced degree exemption.

Why does DHS say the weighted selection process is being implemented?

DHS states it will reduce abuse and ensure visas go to higher-skilled and higher-paid applicants, while maintaining some opportunity for lower-wage workers to be sponsored.

What other measures related to the H-1B program were mentioned alongside the new selection method?

The regulation aligns with broader policy shifts, including an increase in the H-1B visa fee to $100,000 per visa as a condition of eligibility and tighter program oversight.