US overhauls H-1B visa system, scraps lottery for wage- and skill-based selection: How will it impact Indians

US overhauls H-1B visa system, scraps lottery for wage- and skill-based selection

The US Department of Homeland Security (DHS) has announced a major overhaul of the H-1B work visa programme, ending the long-standing lottery system and introducing a weighted selection process that prioritises higher-skilled and higher-paid foreign workers.

Under the revised rules, H-1B visas will no longer be issued through random draws. Instead, applications will be assessed based on wage levels and the skill requirements of the job, increasing the chances of selection for professionals offered higher salaries and specialised roles.

According to the DHS, the changes are aimed at addressing concerns that the existing system had been misused by employers seeking to hire cheaper foreign labour at the expense of American workers.

“The existing random selection process of H-1B registrations was exploited and abused by US employers who were primarily seeking to import foreign workers at lower wages than they would pay American workers," Matthew Tragesser, a spokesman for US Citizenship and Immigration Services, was quoted by the Associated Press as saying.

The regulatory shift, introduced under the Donald Trump-led administration, marks a significant change in how H-1B visas are allocated. Announcing the decision on Tuesday, the DHS said it would prioritise “the allocation of visas to higher-skilled and higher-paid” foreign workers.

In its notification, the department said the move would help safeguard wages, working conditions and job opportunities for American workers.

“The new rule replaces the random lottery for selecting visa recipients with a process that gives greater weight to those with higher skills,” the DHS said in a statement.

The new rules will come into force on February 27, 2026, and will apply to the FY 2027 H-1B cap registration season. Currently, the programme allows for 65,000 H-1B visas annually, with an additional 20,000 reserved for applicants holding advanced degrees from US institutions.

The DHS said the lottery-based system had faced criticism for allowing “unscrupulous employers to exploit it”, resulting in the “flooding” of applications from lower-skilled foreign workers paid at lower wage levels, which it said undermined the American workforce.

In recent years, demand for H-1B visas has far exceeded the annual cap, with major technology companies emerging as the largest beneficiaries of the programme. This year, Amazon received more H-1B approvals than any other employer, followed by Tata Consultancy Services, Microsoft, Apple and Google. California continues to host the largest share of H-1B workers in the US.

• The proposed overhaul of the H-1B visa system is expected to significantly affect Indian professionals, who make up the largest share of H-1B holders in the US.
• Indian IT firms and tech workers applying under lower or mid-level wage categories are likely to face tougher competition under the new weighted, salary-based selection system.
• Highly skilled Indian applicants with advanced qualifications and higher salary offers could see improved chances of selection.
• Entry-level professionals and outsourcing firms that depend on large-scale or bulk visa filings may experience a sharp drop in approvals.
• Analysts suggest the changes could push Indian employers and applicants to prioritise specialised roles, higher pay structures, and direct recruitment by US-based companies instead of staffing consultancies.
• Indian nationals currently account for over 70 per cent of H-1B visas issued annually, primarily in technology, engineering and services, making them disproportionately impacted by any policy tightening.
• Mid-career professionals, junior engineers and candidates sponsored by smaller firms may see reduced selection odds, as their wage levels often fall below the highest-priority tiers under the revised system, according to Business Standard.