US Overhauls H-1B Visa Lottery: New Rules Prioritize Higher-Paid, Higher-Skilled Workers

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The Trump administration is making sweeping changes to the H-1B visa program, replacing the long-standing random lottery system with a weighted selection process that favors higher-paid and higher-skilled foreign professionals.

In a major announcement this week, the Department of Homeland Security (DHS) finalized a rule that ends the pure chance-based lottery for the coveted work visas, which allow U.S. companies to hire specialized foreign talent in fields like technology, engineering and science.

Instead, starting with the fiscal year 2027 cap season, registrations will be weighted based on wage levels, giving significantly better odds to applicants offered higher salaries — a move officials say will better protect American workers’ wages and job opportunities while aligning the program with its original intent to attract top global talent.

“The existing random selection process of H-1B registrations was exploited and abused by U.S. employers who were primarily seeking to import foreign workers at lower wages than they would pay American workers,” said Matthew Tragesser, a spokesman for U.S. Citizenship and Immigration Services (USCIS).

He added that the new system “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 H-1B program is capped at 85,000 visas annually — 65,000 for the general pool and an additional 20,000 reserved for those with advanced U.S. degrees. Demand has far outstripped supply for years, leading to the lottery system that critics argued allowed some employers to game the process by submitting multiple entries for lower-wage candidates.

Under the new weighted approach, selection probability will be tied to Department of Labor wage data, boosting chances for roles at higher prevailing wage levels while still permitting petitions across all salary tiers.

The rule takes effect February 27, 2026, in time for the FY 2027 registration period, which typically opens in March.

This lottery overhaul is part of a broader push by the administration to reform the H-1B program. It follows a September 2025 presidential proclamation imposing a $100,000 supplemental fee on certain new H-1B petitions — a requirement that has faced legal challenges but was recently upheld in court.

Officials describe these steps as essential to preventing abuse and ensuring the program benefits the U.S. economy without undercutting domestic workers.

“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,” Tragesser said.

Immigration experts say the changes could reshape hiring strategies for U.S. companies, particularly in tech, making it harder to secure visas for entry-level or moderately paid roles while favoring senior or specialized positions.

Prospective applicants and employers should monitor USCIS guidance closely as the next cap season approaches.

For full details, refer to the official final rule on the USCIS website.