On December 23, 2025, the U.S. Department of Homeland Security (DHS) announced a landmark change to the H-1B nonimmigrant work visa program. The long-standing random lottery system used to select H-1B visa applications will be replaced with a weighted, skill-based selection process, marking one of the most significant reforms to the program in recent years.
What Is Changing in the H-1B Process?
Until now, H-1B visa registrations exceeding the annual cap were selected through a random lottery, regardless of the offered salary or skill level. DHS has acknowledged that this system was frequently misused by certain employers to hire foreign workers at lower wages, negatively impacting American workers’ wages and job opportunities.
Under the new rule, H-1B visas will be allocated through a weighted selection model that gives higher priority to higher-skilled and higher-paid foreign workers. While applications at all wage levels will remain eligible, those offering better compensation and requiring higher expertise will have a greater probability of selection.
Visa Cap Remains Unchanged
Importantly, DHS has clarified that the annual H-1B visa cap will remain the same:
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65,000 visas under the regular cap
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20,000 additional visas reserved for applicants holding U.S. advanced degrees
The change lies not in the number of visas, but in how they are selected.
When Will the New Rule Apply?
The final rule will come into effect on February 27, 2026, and will apply to the FY 2027 H-1B cap registration season. Employers and foreign professionals planning to file H-1B registrations for FY 2027 and beyond should prepare for this revised selection methodology.
Why DHS Introduced This Reform
According to DHS and U.S. Citizenship and Immigration Services (USCIS), the reform is intended to:
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Protect American workers’ wages and working conditions
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Reduce abuse of the H-1B program
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Encourage employers to hire highly skilled global talent
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Align the program more closely with Congressional intent
This change also complements broader H-1B reforms introduced by the administration, including stricter employer compliance requirements and higher cost obligations for sponsoring companies.
What This Means for H-1B Aspirants
For foreign professionals, especially from countries like India, this reform is a game-changer. Candidates with strong skills, specialized experience, and higher salary offers are likely to benefit the most. Entry-level or low-wage applications may face increased competition under the new system.
Conclusion
The DHS decision to replace the H-1B lottery with a weighted selection process represents a decisive shift toward a merit- and wage-based approach. While it aims to strengthen the integrity of the H-1B program and protect U.S. workers, it also reshapes the strategy that employers and visa applicants must adopt going forward.
Staying informed and planning early will be critical for anyone aspiring to work in the United States under the H-1B program.
Source: U.S. Department of Homeland Security (DHS)
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