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US Ends H-1B Visa Lottery in 2026, Shifting Focus to Higher Skills and Wages

December 25, 2025 5:38 am

US Ends H-1B Visa Lottery in 2026, Shifting Focus to Higher Skills and Wages

The U.S. is revamping its H-1B visa process, departing from the much-maligned lottery system. Starting in February 2026, a new weighted selection method will favor applicants with higher skills and wages. This shift aims to reduce employer exploitation and enhance opportunities for American workers.

Overview of Changes to the H-1B Visa System

The Department of Homeland Security (DHS) plans to overhaul H-1B visa allocations. Under this revised system, applicants with roles needing higher expertise and better compensation will see their chances increased. The goal is clear: positions demanding significant skills and offering competitive pay will hold more weight in the selection process.

DHS argues that this approach aligns more closely with the original aim of the H-1B program while protecting job opportunities for U.S. workers. By prioritizing applicants based on skill and salary, the system intends to better serve both employers and employees.

Reasons for Ending the Random Lottery

Critics have long pointed out flaws in the random selection process. Many companies submitted an overwhelming number of applications for low-wage positions, effectively gaming the system. This tactic often overshadowed the skilled workers the program originally aimed to attract.

Matthew Tragesser, a spokesperson for USCIS, acknowledged that the lottery had been exploited by organizations seeking lower-paid labor. The new rule aims to restore fairness and provide incentives for employers to seek genuinely specialized talent.

Impact on Visa Cap

The total number of H-1B visas remains unchanged:

65,000 visas allocated under the regular category
An additional 20,000 for applicants with advanced U.S. degrees

However, the pathway to selection will shift significantly. The weighted selection will enhance the odds for higher-paid, skilled applications. Although lower-wage roles can still be included, they will not dominate selections as they did previously.

Implementation Date and Future Outlook

The new regulation will take effect on February 27, 2026. This timing is strategic, aligning with the fiscal year 2027 H-1B cap registration cycle, which typically begins in March. Jobs starting on October 1 of that year will be impacted.

Part of a Broader Policy Shift

This change is part of a larger movement. The administration has introduced stricter criteria for employers, including a new Presidential Proclamation requiring an additional fee of $100,000 per visa. The message is clear: employers must value H-1B workers and refrain from practices that undermine U.S. wages.

Tragesser highlighted that the government is committed to continuously raising standards for both employers and foreign workers. The ultimate goal is to enhance the program’s integrity and ensure it effectively serves American labor interests.

Conclusion

For employers, the new H-1B cap will likely necessitate better justification, higher salaries, and clear evidence of specialized skill requirements. For foreign workers, this transition may mean improved prospects if their roles fall within higher wage or specialty tiers. As the U.S. transitions to this new system, the emphasis on talent and fair compensation could significantly reshape the landscape for skilled foreign labor.