US H-1B visa changes: Lottery to favor 'high-paid' applicants after $100k application fee

US may hike wage levels for H-1B visas, link lottery to pay

The US State Department announced that new H-1B visa rules will prioritise higher-paid applicants and strengthen wage requirements to ensure that only the most skilled foreign workers benefit, according to a Hindustan Times report.

The US government is also considering additional changes to the H-1B programme, including raising wage eligibility thresholds and prioritising highly paid professionals in the visa lottery, following the introduction of a $100,000 fee for new petitions effective September 21, the report mentioned.

“(The) further steps that will be taken to reform the H-1B program, as contemplated in the Proclamation, include, rulemaking by the Department of Labor to revise and raise the prevailing wage levels in order to upskill the H-1B program and ensure that it is used to hire only the best of the best temporary foreign workers," a US State Department FAQ release on the new H-1B visa rules said.

According to an advisory by US Citizenship and Immigration Services (USCIS), these proposed reforms are expected to further limit high-skilled immigration to the United States.

Indian professionals, who account for over 70% of approved H-1B petitions, are likely to be disproportionately affected. The changes will also put additional pressure on Indian IT services companies, which rely heavily on the H-1B programme to deploy engineers to serve overseas clients.

What was the lottery rule earlier? 

Currently, US companies seeking to hire foreign workers on H-1B visas must submit a Labour Condition Application (LCA) to the US government. Under the LCA, the employer agrees to pay the foreign worker the “prevailing wage” for the specific job role.

This wage, calculated by the US Department of Labor, represents the minimum amount a US company must pay to ensure that H-1B workers do not undercut American-born employees, accounting for differences in location and job responsibilities.

Once the LCA is approved, the foreign worker enters the H-1B visa lottery, which randomly selects approximately 85,000 applications. If selected, the US company can proceed with the H-1B application. Currently, the lottery does not consider the worker’s wage level, as selection is entirely random.

New lottery rule?

The new proposals by USCIS aim to revise this system by increasing prevailing wage thresholds and modifying the H-1B lottery to favour applicants with higher salaries. These changes are likely to disadvantage entry-level workers, particularly Indian students planning to remain in the US after completing their studies.

“These proposals mirror past efforts to raise prevailing wages, which made H-1B hiring far more costly. If wage levels rise again and the lottery is prioritized by salary, only the highest-paid candidates may stand a real chance. That would narrow the program to elite earners, making it harder for startups, midsize firms, and IT consulting companies to hire needed international talent, especially in areas where shortages are already acute,” said Henry Lindpere, an immigration lawyer at Manifest Law, according to HT.

The proclamation also “requires a $100,000 payment to accompany any new H-1B visa petitions submitted after 12:01 am Eastern Daylight Time on September 21, 2025.”

This applies to applications for the 2026 lottery and any other new H-1B filings beyond that date. A White House official told PTI that the $100,000 fee will “first apply in the next upcoming lottery cycle.” The fee is a one-time payment required upon submission of a new H-1B petition.