US overhauls H-1B lottery to favour high-skilled, high-paid workers

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In one of the most significant shifts in the H-1B programme in decades, and apart from the earlier $100,000 H-1B fee hike, the United States is set to fundamentally change how its H-1B visa lottery works, moving away from a purely random draw to a wage-weighted system that gives higher-paid roles better odds of selection.

The final rule, issued by the Department of Homeland Security (DHS) and implemented by the US Citizenship and Immigration Services (USCIS), will apply from the FY2027 H-1B cap season and is aimed at prioritising higher-skilled and higher-paid foreign workers, while still allowing participation across all wage levels.

“This weighted selection process will generally favour the allocation of H-1B visas to higher-skilled and higher-paid aliens, while maintaining the opportunity for employers to secure H-1B workers at all wage levels,” the DHS said in the final rule.

The change is particularly significant for Indian professionals and employers, as Indians account for roughly 70-75 percent of H-1B visas issued every year. With the lottery now tilted toward higher-paid roles, the new system is expected to favour experienced professionals, senior engineers, and specialised talent, while making it harder for lower-paid, entry-level roles to clear the cap.

Under the revised framework, H-1B registrations will be weighted based on occupational and wage statistics levels whenever applications exceed the annual cap.

For context, the annual H-1B cap itself remains unchanged.

The US issues 65,000 H-1B visas each year under the regular cap, along with an additional 20,000 visas for applicants holding a US master’s degree or higher, taking the total to 85,000 new H-1B visas annually.

Also read: Trump’s $100,000 H-1B fee could eliminate 140,000 jobs in US a year, Indians to take biggest hit: Expert

The new wage-weighted lottery only determines how these limited slots are allocated when applications far exceed supply, which has been the case for more than a decade.

Registrations tied to wage level IV will be entered into the lottery four times, level III three times, level II twice, and level I once. Each beneficiary will still count only once toward the annual quota, but higher wage offers will materially increase selection probability.

DHS said, in the rule, that the change better aligns the lottery with congressional intent behind the H-1B programme, which was designed to help US employers fill roles requiring specialised skills, rather than serving as a pipeline for lower-paid positions.

“Pure randomisation does not serve the ends of the H-1B programme,” DHS said, adding that wage-based weighting better reflects skill and economic value.

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The department said demand for H-1B visas has exceeded supply for more than a decade, and a purely random lottery has increasingly failed to distinguish between high-value roles and lower-paid positions.

By using wage levels as a proxy for skill and economic value, DHS expects the new system to shift outcomes toward roles that are more likely to contribute to productivity, innovation, and competitiveness, while also reducing wage suppression risks for US workers.

Also read: Only 3-5% of Indian IT workforce is on H-1B; companies don’t expect significant impact of new visa fee

Alongside lottery changes, employers will now be required to declare wage levels, job classification codes, and work locations at the registration stage, and submit documentary evidence at the petition stage to support those claims.

USCIS will have wider authority to deny or revoke petitions if it finds attempts to manipulate wages, roles, or locations to improve lottery odds.

DHS said this is aimed at preventing gaming of the system and strengthening programme integrity.

Also read: Indian IT cuts H-1B visa use by 56% in 8 years; US Big Tech emerges top sponsor

Recently, H-1B and H-4 visa holders have seen extended visa interview timelines following the US government’s decision to expand social media and online presence checks to all H-1B and H-4 applicants worldwide.

Also read: How H-1B holders stuck in India are navigating legal chaos as US government postpones renewal timelines

This has led several US technology firms, including Google, Microsoft, and Apple, to caution employees on work visas against overseas travel due to the risk of prolonged processing delays.

Legal experts earlier said that the combination of tighter vetting and a redesigned lottery highlights a clear policy direction: prioritising higher-value roles while reducing perceived abuse of the programme.

Despite the shift, DHS said the lottery will retain an element of randomness and will not exclude lower-wage roles entirely, unlike earlier wage-ranking proposals that were later withdrawn.

The department said this balance is intended to preserve access for employers across sectors, while nudging the programme toward higher-skilled, higher-paid use cases that better reflect the original purpose of the H-1B visa.

Also read: H-1B programme has 'deviated from its intent', now filled with 'average workers': Ex-US official