US Replaces H-1B Lottery with Wage- and Skill-Based System

Dec 24, 2025 - The US Department of Homeland Security (DHS) has officially announced a major overhaul of its H-1B visa selection process.

The traditional random lottery that selected beneficiaries when registrations exceeded the visa cap will be replaced. Instead, H-1B visas will be allocated through a weighted system that prioritises allocation to higher-paid and higher-skilled applicants. This new rule is brought in by the Trump administration to protect US worker wages and curb misuse of the programme by hiring cheaper labour.

This means that instead of random draws, employers who offer higher wages and require more advanced skills will have a greater chance of selection. Lower-wage positions will still be eligible, but chances are lower.

The new rule takes effect February 27, 2026, and applies to the FY 2027 H-1B cap registration season. Registrations are expected in March 2026 for jobs starting Oct 1 2026.

This change in the rules for H1-B visa is part of wider immigration policy reforms under the current US administration. The overhaul is linked to efforts to prevent perceived abuses of the H-1B system.

It fits into a broader agenda that has also included higher fees and new restrictions on certain visa categories. The Trump government had earlier imposed the $100,000 entry-fee for new H-1B visa applications. This fee applies to new H-1B petitions and is part of the updated regulatory landscape. Coupled with the elimination of the lottery system, it will become challenging for overseas applicants, including India, to work in the US. Indians historically comprise a large share of H-1B beneficiaries.

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