The Trump administration has announced a major change to the H-1B visa programme, ending the random lottery system and introducing a new selection process that will prioritise higher-skilled and higher-paid foreign workers. The new rule will come into force on February 27, 2026, and will apply to the FY 2027 H-1B cap registration season.
The Department of Homeland Security said the move is aimed at protecting wages, working conditions and job opportunities for American workers. Indian professionals, who form one of the largest groups of H-1B visa holders in the United States, are expected to be among those most affected.
Why the lottery system is being scrapped
In a statement issued on Tuesday, the department said it is amending regulations governing the H-1B work visa selection process to give preference to higher-skilled and higher-paid individuals. The agency said the existing lottery-based system was often misused by employers to hire foreign workers at lower wages.
The new system will replace the random lottery with a weighted selection process that gives greater importance to skill levels and salary. According to the department, this approach better reflects the original intent of the H-1B programme.
US Citizenship and Immigration Services said the current process was vulnerable to abuse. “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,” USCIS spokesman Matthew Tragesser said.
He added, “The new weighted selection will better serve Congress’ intent for the H-1B program and strengthen America’s competitiveness by incentivising American employers to petition for higher-paid, higher-skilled foreign workers. With these regulatory changes and others in the future, we will continue to update the H-1B program to help American businesses without allowing the abuse that was harming American workers.”
Tighter rules, higher costs for employers
USCIS said the rule is part of wider steps to strengthen the integrity of the H-1B non-immigrant visa programme. It follows other measures taken by the administration, including a Presidential Proclamation that requires employers to pay an additional USD 100,000 per visa as a condition of eligibility.
“As part of the Trump Administration’s commitment to H-1B reform, we will continue to demand more from both employers and aliens so as not to undercut American workers and to put America first,” Tragesser said.
The annual cap on H-1B visas remains unchanged at 65,000, with an additional 20,000 visas for applicants with advanced degrees from US institutions. USCIS said the final rule addresses concerns that the lottery system allowed employers to flood applications with lower-skilled, lower-paid workers, hurting the domestic workforce. Under the new framework, higher-skilled and higher-paid applicants will have a higher chance of selection.
Since President Donald Trump began his second term, the administration has announced several steps to curb misuse of the H-1B programme. These include the USD 100,000 fee on new H-1B applications and stricter scrutiny of employers.
From December 15, the US State Department has also started enhanced screening and vetting of H-1B and H-4 visa applicants, including checks of social media profiles. This has led to delays in visa interviews across India, with many appointments postponed by months.
Several H-1B visa holders who travelled to India for visa stamping have been affected by these delays. The State Department has reiterated that a US visa is a privilege, not a right, and said it uses all available information to identify applicants who may pose a threat to US national security or public safety.
