US Overhauls H-1B Visa System: Random Lottery Replaced by Wage-Based Selection

New Delhi, December 24, 2025: In a major shift for the American immigration landscape, the U.S. Department of Homeland Security (DHS) has officially notified a final rule to overhaul the H-1B work visa selection process. Moving away from the long-standing random “lottery” system, the new framework—announced on December 23, 2025—will prioritize candidates based on their salary and skill levels.

The move is designed to ensure that the coveted visas, which are capped at 85,000 per year, are awarded to the most highly skilled and highest-paid foreign professionals, rather than being distributed purely by chance.

Key Changes: How the “Weighted” System Works

The traditional random selection process, where every applicant had an equal chance regardless of their salary, is being replaced by a weighted selection model. Under this new rule, the probability of being selected is directly tied to the Department of Labor’s (DOL) prevailing wage levels:

• Wage Level IV (Highest): These applicants will be entered into the selection pool four times.
• Wage Level III: These applicants will receive three entries.
• Wage Level II: Mid-level professionals will receive two entries.
• Wage Level I (Entry-level): These applicants will receive only one entry.

By giving “extra tickets” to higher-earning roles, the U.S. government aims to incentivize employers to hire senior talent and specialists, while making it more difficult for companies to use the H-1B program to fill entry-level positions with lower-cost labor.

Implementation and Impact

The new rule is scheduled to take effect on February 27, 2026. This means it will apply to the Fiscal Year 2027 cap season, for which registrations typically open in March 2026.

Who wins and who loses?

1. High-Skilled Professionals: Doctors, senior engineers, and specialized researchers with high salary offers will see their chances of securing a visa nearly double compared to the old system.
2. Tech Giants: Large companies that already pay top-tier salaries (like Google, Apple, and Microsoft) may find it easier to secure visas for their senior staff.
3. Recent Graduates: International students graduating from U.S. universities may face the steepest climb. Since most graduates start at “Level I” wages, their odds of selection will drop significantly.
4. Indian Diaspora: As Indian nationals currently receive over 70% of H-1B visas annually, this policy shift will have a profound impact on Indian IT firms and professionals.

Why the Change?

U.S. Citizenship and Immigration Services (USCIS) spokesperson Matthew Tragesser stated that the random lottery was frequently “exploited and abused” by employers seeking to import foreign workers at lower wages than American counterparts. The administration argues that this “wage-first” approach protects the pay and job opportunities of U.S. workers while strengthening national competitiveness.

This reform follows other recent tightened measures, including a controversial $100,000 per-visa fee for certain H-1B categories, signaling a definitive end to the era of “luck-based” immigration in the United States.