H-1B Visa Rules Are Changing: Who Benefits And Who Loses Under The New Wage-Based System

The United States is set to fundamentally change how it allocates one of its most sought-after work visas. In a major policy shift under President Donald Trump’s administration, the long-standing random lottery system for H-1B visas is being scrapped and replaced with a wage-weighted selection model that favours higher-paid and more skilled applicants.

The move marks a decisive break from a system that, for years, treated all applicants equally regardless of pay or seniority. For thousands of aspiring foreign professionals, particularly from India, which accounts for one of the largest shares of H-1B visa holders, the change could significantly alter their chances of working in the US.

What Is Changing in the H-1B System?

Until now, H-1B visas were largely allocated through a computerised lottery once applications exceeded the annual cap. Under the new framework, that randomness will disappear.

The Department of Homeland Security (DHS) confirmed on Tuesday, December 23, that it is revising the H-1B selection process to prioritise visas for individuals with higher skills and higher salaries. 

According to the department, the aim is to better protect US wages, working conditions and job opportunities, while ensuring the programme is used for genuinely specialised roles.

In simple terms, applicants will no longer have equal odds. Instead, pay levels will play a decisive role in determining who gets picked.

When Will the New Rules Apply?

The revised regulations will come into force on February 27, 2026, and will apply to the FY 2027 H-1B cap registration cycle. The US currently issues 65,000 H-1B visas annually, with an additional 20,000 reserved for candidates holding 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 United States Citizenship and Immigration Services (USCIS) said.

How the Wage-Weighted Selection Will Work

At the heart of the overhaul is the use of government wage data from the Occupational Employment and Wage Statistics survey, reported Hindustan Times.

Roles are classified into four wage levels, based on experience and skill requirements.

Level I: Entry-level roles

Level II: Qualified but less experienced positions

Level III: Experienced professionals

Level IV: Senior or fully specialised roles

Under the new system, applications tied to Level IV wages will be entered into the selection pool four times. Level III applications will be entered three times, Level II twice, and Level I just once.

This means that while entry-level candidates can still apply, their chances of selection will be significantly lower compared with higher-paid professionals. The DHS argues that this structure encourages employers to offer competitive wages and discourages the filing of large volumes of low-wage applications.

Who Stands to Gain and Who May Lose Out

Senior professionals, specialists and workers earning at the top end of the wage spectrum are likely to benefit the most from the new framework. For companies, roles that demand deep expertise and command higher pay will now have a clearer pathway under the H-1B programme.

On the other hand, early-career professionals, including many international graduates from US universities, could find it harder to secure visas. Critics argue that Level I and Level II roles often serve as critical entry points into the US workforce, helping young professionals build experience before moving into more senior positions.

Why the Government Is Ending the Lottery Era

The H-1B lottery has long drawn criticism for being arbitrary and susceptible to misuse. Officials say the old system allowed employers to flood the process with applications for lower-paying roles, diluting the programme’s original intent.

By shifting to a wage-weighted model, the administration says it can better align visa allocation with the goal of attracting top global talent, while reducing abuse and ensuring that US workers are not undercut on pay.

A Broader Clampdown on Skilled Immigration

The H-1B overhaul is part of a wider tightening of immigration rules under the Trump administration. Among the more controversial ideas floated recently is a proposed $100,000 fee for certain H-1B workers hired from outside the US, a move that is currently facing legal challenges.

The timing of the rule is also notable. It comes just weeks ahead of the annual spring H-1B registration window, a crucial hiring season for technology firms and other industries that rely heavily on skilled foreign labour.