The U.S. Department of Homeland Security (DHS) announced on December 23, 2025, a major reform to the H-1B specialty occupation visa program, finalizing a rule that replaces the longstanding random lottery selection with a weighted process favoring higher-skilled and higher-paid foreign workers. The change, effective February 27, 2026, and applying to the fiscal year 2027 cap registration season, aims to curb perceived abuses of the system and better protect American workers' wages and job opportunities.
In an official statement, DHS explained that the current random lottery has been vulnerable to exploitation. “The existing random selection process of H-1B registrations was exploited and abused by U.S. employers who were primarily seeking to import foreign workers at lower wages than they would pay American workers,” said Matthew Tragesser, spokesman for U.S. Citizenship and Immigration Services (USCIS). He added: “The new weighted selection will better serve Congress’ intent for the H-1B program and strengthen America’s competitiveness by incentivizing American employers to petition for higher-paid, higher-skilled foreign workers.”
The H-1B program annually caps new visas at 85,000—65,000 under the regular cap and 20,000 reserved for advanced degree holders from U.S. institutions. Demand far exceeds supply, historically triggering a lottery. Critics, including the Trump administration, argue this has allowed some employers to flood registrations with lower-wage applications, suppressing wages and displacing U.S. workers.
Under the new rule, selections will be weighted based on the Department of Labor's Occupational Employment and Wage Statistics (OEWS) prevailing wage levels for the offered position. Registrations at higher wage levels receive multiple entries in the selection pool, significantly boosting their odds while lower-level ones remain eligible but less likely to be chosen. This beneficiary-centric approach ensures each unique worker is counted only once, preventing multiple registrations from gaming the system.
The reform builds on broader Trump administration efforts to tighten H-1B oversight, including a September 2025 presidential proclamation imposing an additional $100,000 fee per new visa petition (upheld in court challenges) and enhanced compliance measures. “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 stated.
Proponents view the changes as aligning the program with its original intent: attracting top global talent in specialty occupations like technology, engineering, and healthcare. DHS projects the weighted system will redistribute visas toward higher wage tiers, increasing overall wages paid to H-1B workers and deterring low-wage abuse.
Industry reactions are mixed. Tech giants and immigration advocates warn it could disadvantage entry-level roles, startups, and small businesses reliant on recent graduates or modestly paid specialists. Employer groups previously commented that wage levels often reflect seniority rather than actual pay or skill, potentially misallocating visas. Legal challenges are anticipated, similar to a 2021 wage-prioritization rule vacated and withdrawn under the Biden administration.
The rule revives elements of that earlier proposal but adopts a weighted rather than strict ranking system, preserving access across wage bands. USCIS will require consistent wage and occupational data from registration through petition filing, with authority to deny or revoke approvals for inconsistencies or manipulation.
As the FY 2027 registration period approaches (typically March), employers must strategize offers, ensuring accurate OEWS classifications. Foreign professionals, particularly those in lower-wage entry positions—a significant portion from India and other countries—face reduced selection chances, potentially shifting focus to alternative visas or higher-paying roles.
This overhaul marks one of the most substantive H-1B changes in decades, reflecting ongoing debates over immigration, labor markets, and U.S. competitiveness amid global talent competition.
