New York: The United States has announced a major overhaul of its H-1B work visa programme, ending the long-standing lottery system and replacing it with a weighted selection process that favours higher-paid and more highly skilled foreign workers. The move, notified by the Donald Trump administration, is expected to significantly alter how work visas are awarded and could make it harder for entry-level professionals, including many from India, to qualify.
Under the new framework, H-1B visas will no longer be distributed through a random draw. Instead, applications will be ranked based on wage levels and skill criteria, increasing the chances for candidates offered higher salaries. The Department of Homeland Security said the new rule will come into force on February 27, 2026, and will apply to the fiscal year 2027 H-1B registration cycle.
US Citizenship and Immigration Services said the existing lottery system had been misused by some employers to hire foreign workers at lower wages. “The random selection process was exploited by employers primarily seeking to import foreign labour at salaries below what would be paid to American workers,” a USCIS spokesperson said.
The change is part of a broader push by the Trump administration to reshape employment-based immigration. A government statement said the new system aligns with other policy measures, including a presidential proclamation requiring employers to pay an additional $100,000 per H-1B visa as a condition for eligibility. That fee requirement is currently under legal challenge. The administration has also introduced a proposed “gold card” visa offering a path to citizenship for wealthy individuals in exchange for a $1 million payment.
The H-1B programme allows US companies to hire foreign workers in specialised occupations and is widely used by technology firms, hospitals and educational institutions. Indian nationals form one of the largest groups of H-1B holders, particularly in the technology and healthcare sectors. For decades, the visa has served as a key entry point for young Indian professionals seeking careers in the US.
However, the shift to a pay-weighted system is likely to disadvantage early-career applicants and recent graduates, who typically receive lower salary offers compared to senior professionals. While the annual cap of 65,000 visas, along with an additional 20,000 for applicants holding US master’s degrees or higher, remains unchanged, the selection dynamics will be fundamentally different.
Supporters of the reform argue that it will ensure visas are granted to genuinely specialised talent and prevent misuse of the programme. Critics, however, warn that it could reduce opportunities for young skilled workers and narrow the talent pipeline that has historically fuelled innovation in the US economy.
The H-1B debate has long been contentious, balancing concerns over protecting domestic jobs against industry demands for global talent. With the end of the lottery system, the programme is set to undergo its most significant transformation in decades, with far-reaching implications for employers and aspiring foreign professionals alike.
