H-1B Overhaul Explained: The Winners And Losers Of The New Selection Process That Replaces Lottery

The Trump administration is implementing major changes to the existing H-1B visa policy by replacing the random lottery system. Instead of the longstanding lottery system, the new H-1B visa norms prioritise the skilled, experienced and higher-paid foreign workers.

The US Citizenship and Immigration Services (USCIS) announced changes to the H-1B visa norms in a notification on Dec. 23, 2025.

The new process, initiated by the Department of Homeland Security, will come into effect on Feb. 27, 2026. These rules will be in effect for the FY 2027 H-1B cap registration season, as per the official statement.

Indian professionals are among the largest group of H-1B visa holders in the US and will be affected by the move. Under the lottery system, the US awarded 65,000 visas under the general H-1B cap and an additional 20,000 to those with US advanced degrees. 

The new rule comes as a US federal judge upheld the Trump administration’s decision to impose a $1,00,000 fee for processing H-1B visa applications, acknowledging the move could "inflict significant harm on American businesses and institutions of higher education." According to AFP, at least two more lawsuits against the H-1B visa application fee are ongoing.

The move is part of a broader push by the Trump administration to crack down on immigration. 

USCIS said that the changes in H-1B rules will push American employers to look for higher-paid, more 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,” the agency announced. 

The Trump administration has often called out the H-1B visa system, arguing that it is being abused to replace American workers with people willing to work for lower salaries. 

H-1B Overhaul Winners

The system will be based on wages and qualifications. Applicants who are more experienced and are being offered higher salaries will be prioritised for the visas. The wage levels for H-1B candidates range from Level 1 for entry-level employees to Level 4 for highly experienced personnel, based on US Department of Labor guidelines.

The USCIS has specified that US companies will be able to get H-1B workers at all wage levels.

"The final rule will implement a weighted selection process that will increase the probability that H-1B visas are allocated to higher-skilled and higher-paid aliens while maintaining the opportunity for employers to secure H-1B workers at all wage levels," the agency said. 

As per an NDTV report, senior professionals, particularly in specialised fields like cybersecurity, artificial intelligence and advanced engineering, and workers at firms that are able to offer higher salaries may benefit from the move. 

H-1B Overhaul Losers

Students and new graduates who are starting their professional journey often accept lower salaries, particularly in non-STEM fields and startups, where budgets may be tight. Under the USCIS’ wage-based system, these candidates may be pushed down the selection queue or even overlooked, regardless of their potential or qualifications.

How Will The H-1B Overhaul Work?

The new system asks all prospective petitioners seeking to file H-1B cap-subject petitions to first register electronically and pay the associated registration fee of $1,00,000 for every prospective beneficiary.

The petitioning employer must then finish an electronic registration about basic information about the company, as well as each beneficiary for whom they are requesting an H-1B visa. Employers are required to submit valid passport information or travel document information for every beneficiary.

The initial registration period will be for a minimum of 14 calendar days every fiscal year. USCIS will then select unique beneficiaries based on the submitted electronic registrations. If a beneficiary is selected, then the employer who registered for the foreign worker would get a registration selection notice and can file an H-1B cap-subject petition on behalf of the potential employee. 

Selections will take place after the initial registration period is over. Employers can file an H-1B cap-subject petition only after they get a selection notice for the beneficiary.