The United States has officially scrapped the H-1B visa lottery system, replacing it with a wage- and skill-based selection process aimed at prioritising higher-paid and higher-skilled foreign professionals, the Department of Homeland Security (DHS) announced on Tuesday.
Under the revised rules introduced by the Donald Trump-led administration, H-1B visas will no longer be allocated through a random lottery. Instead, applications will be ranked to give greater preference to candidates with advanced skills and higher wage offers. The DHS said the move is intended to protect the wages, working conditions, and job opportunities of American workers.
“The new rule replaces the random lottery with a selection process that gives greater weight to higher-skilled and higher-paid workers,” the DHS said in an official statement.
When Will the New H-1B Rules Take Effect?
The updated H-1B visa regulations will come into force on February 27, 2026, and will apply to the FY 2027 H-1B cap registration season.
Currently, the US issues 65,000 H-1B visas annually, along with an additional 20,000 visas reserved for applicants holding advanced degrees from US institutions. While these numerical caps remain unchanged, the method of selecting applicants will be fundamentally altered.
Why the US Scrapped the H-1B Lottery System
According to the DHS, the existing lottery-based system had drawn widespread criticism for being vulnerable to misuse. Officials said the random selection process allowed some employers to flood the system with applications for lower-skilled, lower-paid workers, which they argue negatively affected the domestic workforce.
The department stated that the revised framework will introduce a weighted selection process, increasing the likelihood that visas are awarded to candidates who bring greater economic and professional value to the US labour market, while still allowing employers to hire workers across different wage levels.
Government Response and Rationale
US Citizenship and Immigration Services (USCIS) spokesperson Matthew Tragesser said the lottery system had been “exploited and abused” by certain employers seeking to hire foreign workers at wages lower than those paid to American workers.
“The new weighted selection will better serve Congress’ intent for the H-1B programme and strengthen America’s competitiveness by encouraging employers to petition for higher-paid, higher-skilled foreign professionals,” Tragesser said.
He added that the administration would continue to introduce regulatory changes to support US businesses while preventing practices that disadvantage domestic workers.
Part of Broader Immigration Policy Changes
The DHS noted that the new rule aligns with other recent policy shifts under the Trump administration, including a significant increase in H-1B visa fees, which officials say is designed to deter misuse and ensure the programme is used for specialised talent needs.
