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H-1B overhaul: Here's who gets priority and who faces setback during visa selection process
The H-1B visa process will be revised to prioritize applicants with higher skills and salaries, effective February 27, 2026.
H-1B visa system: A significant modification to the H-1B visa program is being implemented by the administration of US President Donald Trump, which will replace the random lottery system previously used to select visa recipients with a new process that prioritizes the allocation of visas to individuals who possess higher skills and earn greater salaries.
In simpler terms, the Trump administration is reforming the H-1B visa system by abolishing the random lottery and instead prioritizing visas for workers who are more skilled and receive higher compensation.
This new directive is the most recent development in the Trump administration's ongoing efforts to tighten regulations on immigration, both legal and illegal, as well as on H-1B visas, which are utilized by US corporations to recruit foreign talent. Indian professionals make up one of the largest groups of H-1B visa holders in the United States.
On Tuesday, December 23, the Department of Homeland Security issued a statement confirming that it is revising the regulations that govern the selection process for H-1B work visas to prioritize the distribution of visas to individuals with higher skills and salaries, thereby enhancing the protection of wages, working conditions, and job opportunities for American workers.
New rule to take place in 2027
The updated regulations are set to take effect on February 27, 2026, and will be applicable to the FY 2027 H-1B cap registration period. At present, the United States grants 65,000 H-1B visas each year, with an additional allocation of 20,000 reserved for holders of advanced degrees from US institutions.
“The rule implements a weighted selection process that will favour allocating 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. This final rule is effective Feb. 27, 2026, and will be in place for the FY 2027 H-1B cap registration season,” the USCIS said.
How wage levels influence your H-1B prospects
The system will depend on the government's current wage data, referred to as the Occupational Employment and Wage Statistics survey. Jobs are categorized into four wage levels, ranging from Level I for entry-level positions to Level IV for senior and fully skilled roles.
Under the revised procedure, applications associated with Level IV wages will be submitted to the selection pool four times. Level III applications will be submitted three times. Level II will be submitted twice, while Level I will be submitted only once.
This suggests that all individuals can still apply, including those in entry-level positions. However, the chances are no longer equal. Higher wages result in greater visibility during the selection process. According to the Department of Homeland Security (DHS), the objective is to encourage employers to provide better compensation and to allocate H-1B visas for positions that genuinely necessitate specialized skills. Officials contend that the previous lottery system permitted companies to inundate the system with low-wage applications.
The government also asserts that the new system will assist in minimizing the misuse of the program, particularly in instances where H-1B visas were utilized for lower-paying roles.
An end to lottery era
The H-1B lottery has faced extensive criticism for being arbitrary and outdated. This new regulation signifies a distinct departure from that methodology. Although the government maintains that opportunities are available for all wage levels, the dynamics have shifted significantly in favor of higher-paid positions.
This change follows a series of recent immigration measures designed to tighten the regulations surrounding skilled visas. One of the most contentious proposals is a suggested fee of $100,000 for specific H-1B employees recruited from outside the United States. This fee is currently under legal challenge.
The regulation, introduced by the Trump administration on Tuesday, is set to take effect just weeks before the annual spring H-1B lottery, which is a vital hiring period for technology companies and other sectors that rely heavily on skilled foreign labor.
