US Scraps H-1B Lottery, Moves To Higher-Paid, Skill-Based Visa Selection For Foreign Workers

The US will scrap the H-1B visa lottery and introduce a weighted system that favours higher-skilled and higher-paid foreign workers, citing misuse of the existing process.
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The US Department of Homeland Security has announced a major overhaul of the H-1B work visa programme, ending the long-standing lottery system and replacing it with a selection process that gives preference to higher-skilled and higher-paid foreign workers.

Under the new framework, visas will no longer be allocated purely through random selection. Instead, applications will be weighted in a way that increases the likelihood of approval for foreign professionals offered higher wages and roles requiring more advanced skills.

According to the department, the change is intended to address concerns that the existing system has been misused by employers seeking cheaper labour.

“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," Matthew Tragesser, a spokesman for US Citizenship and Immigration Services, was quoted by the Associated Press as saying.

The announcement follows a series of actions by Donald Trump aimed at tightening and redefining legal immigration pathways tied to employment.

Earlier this year, Trump signed a proclamation imposing an additional annual fee of $100,000 per H-1B visa for highly skilled foreign workers, a measure that is currently facing legal challenges.

The administration has also unveiled a $1 million “gold card" visa, pitched as a route to US citizenship for wealthy individuals.

A press release detailing the new H-1B rule said the shift was consistent with other policy changes introduced by the administration.

It described the weighted selection system as being “in line with other key changes the administration has made, such as the Presidential Proclamation that requires employers to pay an additional $100,000 per visa as a condition of eligibility."

For decades, the H-1B programme has relied on a lottery to allocate visas once applications exceed the annual cap.

In recent years, demand has far outstripped supply.

Major technology companies have been among the biggest beneficiaries.

This year, Amazon received more H-1B approvals than any other employer, with over 10,000 visas, followed by Tata Consultancy Services, Microsoft, Apple and Google. California continues to host the largest share of H-1B workers in the country.

According to the department, the revised system will “implement a weighted selection process that will increase the probability that H-1B visas are allocated to higher-skilled and higher-paid" foreign nationals.

The rule will come into force on February 27, 2026, and will apply to the upcoming H-1B cap registration cycle.

The policy change has drawn mixed reactions.

Supporters of the H-1B programme argue that it plays a critical role in filling labour shortages in sectors such as healthcare and education, while also helping US companies remain competitive and innovative.

They say the visa allows employers to recruit specialised talent that is difficult to find domestically, contributing to broader economic growth.

Critics, however, maintain that the programme has strayed from its original intent.

They argue that many H-1B visas are issued for relatively junior positions rather than truly specialised or senior roles.

Although the programme includes safeguards meant to prevent wage suppression and the displacement of American workers, critics contend that employers can exploit the system by classifying positions at the lowest wage levels, even when hiring experienced professionals.

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Currently, the H-1B programme is capped at 65,000 new visas each year, with an additional 20,000 reserved for applicants who hold a US master’s degree or higher.

Source: News18

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