The US Department of Homeland Security (DHS) has moved to overhaul the H-1B work visa selection process, replacing the long-standing random lottery with a system that gives preference to higher-paid and more highly skilled foreign workers, a shift the Trump administration states is aimed at protecting American wages and jobs.
This rule, together with the imposition of the $ 100,000 entry-fee for new H-1B applications and the proposed hike in wages will make it more challenging for companies to recruit overseas employees under the H-1B visa program – this is not good news for those pursuing the American dream. On the flip side, this is expected to result in more offshoring – with countries like India, expected to benefit through expansion of global capability centres.
This new rule, released on Tuesday night, will take effect from Feb 27, 2026 - it will be in place before the E-registrations for the coming H-1B cap applications open. There is an annual quota of 85,000 (including the Masters cap) for H-1B cap applications. E-registrations for H-1B applications open in March. As demand significantly exceeds supply, post registration a random lottery is conducted. The sponsoring employers then file a detailed H-1B application for those candidates (beneficiaries) who were successfully selected in the lottery.
The random selection (lottery) mechanism will now stand changed. Under the new rule, H-1B visas will no longer be allocated purely by chance. Instead, registrations will be weighted according to wage levels set by the US Department of Labour (DOL), increasing the likelihood of selection for applicants offered higher salaries.
In an official statement the US Citizenship and Immigration Services (USCIS) contends that the existing lottery had been misused by some employers to bring in lower-paid foreign labour at the expense of US workers.
“The existing random selection process of H-1B registrations was exploited and abused by US employers who were primarily seeking to import foreign workers at lower wages than they would pay American workers,” Matthew Tragesser, a spokesperson for USCIS, said in a statement. He added that the weighted system would better reflect congressional intent behind the programme and strengthen US competitiveness by encouraging employers to seek higher-skilled and higher-paid talent.
The rule does not make substantial changes from draft rules that were released in Sept. TOI had done a deep dive into the mechanism set down in the draft rules and its implications. An H-1B candidate with a Level IV wage offer (the highest tier) would be entered into the lottery four times, while a Level III beneficiary would be entered three times, a Level II beneficiary twice, and a Level I beneficiary only once. This ‘weighted lottery’ approach would give higher odds of selection to those offered the highest wages.
Under the current system, all beneficiaries (across all four levels) entered in the lottery face equal odds of selection of about 29.59%. Under the proposed rule, however, odds diverge sharply by wage level.
The National Foundation for American Policy (NFAP), which had analysed the draft rules had stated that under the new mechanism, the probability of selecting an individual at Level IV for an H-1B application would increase by 107% but fall by 48% for individuals at Level I. Effectively, the rule would tilt opportunities heavily toward mid-career professionals or those in senior roles, while creating a barrier for entry-level professionals, including the bulk of recent international graduates from US universities.
The implications for the Indian diaspora who aspire to work in the US at lower tiers – such as new graduates from US universities are stark. For the fiscal ended Sept 2024, of the 1.41 lakh H-1B applications approved by US Citizenship and Immigration Services (USCIS), 80,449 (or 57%) were for Indian beneficiaries. It should be noted that the total figure is above the annual quota of 85,000 as USCIS keeps a buffer for rejections or employers withdrawing from the process.
USCIS added that this rule is another crucial step to strengthen the integrity of the H-1B visa program. “As part of the Trump Administration’s commitment to H-1B reform, we will continue to demand more from both employers and aliens so as not to undercut American workers and to put America first,” said Tragesser.
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Lubna Kably is a senior editor, who focuses on various policies a...
Read MoreLubna Kably is a senior editor, who focuses on various policies and legislation. In particular, she writes extensively on immigration and tax policies. The Indian diaspora is the largest in the world; through her articles she demystifies the immigration-policy related developments in select countries for outbound students, job aspirants and employees. She also analyses the impact of Income-tax and GST related developments for individuals and business entities.
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