On Tuesday, December 23, the Department of Homeland Security (DHS) in the United States announced that it will replace the lottery system that has been used for H-1B visas with a new method that prioritizes foreign workers with higher skills and higher salaries.
The DHS released a statement saying that the new regulation will replace the current random lottery system with a weighted selection process that focuses more on the skill levels of the applicants.
The current H-1B visa registration random lottery process has been abused by some U.S. employers, whose main purpose is to hire foreign workers at wages lower than those of American workers. According to Matthew Tragesser, spokesperson for U.S. Citizenship and Immigration Services, “The new weighted selection process will better reflect the original intent of Congress in establishing the H-1B program, and by incentivizing U.S. employers to apply for high-wage, high-skill foreign workers, we will enhance U.S. competitiveness. Through these and future regulatory reforms, we will continue to improve the H-1B program to help U.S. businesses grow while preventing abusive practices that harm U.S. workers.”
The annual cap for H-1B visas is set at 65,000, with an additional 20,000 slots specifically reserved for applicants with advanced degrees from U.S. institutions.
To address the issues of abuse surrounding H-1B visas, the new final rule will implement a weighted selection process that increases the chances for high-skilled, high-wage foreign talent to obtain H-1B visas, while still allowing employers the opportunity to hire H-1B employees across all wage levels. This final rule will go into effect on February 27, 2026, and will apply to the H-1B visa registration season for the fiscal year 2027.
DHS stated that this regulation is another key measure to strengthen the integrity of the H-1B nonimmigrant visa program, consistent with other significant reform measures implemented by this administration.
Earlier this year, President Trump signed an order imposing a $100,000 annual fee for H-1B visas for high-skilled workers. The President also introduced the “Trump Gold Card” visa, where companies can secure a fast track to U.S. citizenship for valuable employees by paying $2 million.
“As part of the H-1B reform commitments of the Trump administration, we will continue to raise the bar for employers and foreign applicants to protect the interests of American workers and prioritize American interests,” Tragesser added.
Historically, H-1B visas have been issued through a lottery system. This year, Amazon was the company that received the most H-1B visas, with over 10,000 approved, followed by Tata Consultancy Services, Microsoft, Apple, and Google. California has the highest number of H-1B visa holders.
Supporters of the H-1B program argue that the visa is crucial for recruiting healthcare workers and educators. They believe the program drives innovation and economic growth in the U.S., allowing employers to fill vacancies in specialized fields.
Critics, however, argue that these visas are typically granted for entry-level positions rather than for high-skilled positions that require expertise. While the program aims to prevent wage suppression or displacement of American workers, critics point out that companies can pay lower wages by categorizing positions at the lowest skill levels, even if the hired workers have extensive experience.